Is there sales tax on groceries in New Mexico?
Quick answer
No. Groceries bought for home preparation are exempt from New Mexico state sales tax. Prepared and restaurant food is still taxable.
Food sold at retail food stores is deductible from gross receipts, so groceries are effectively untaxed.
Rule summary
How New Mexico treats each category.
| Grocery food (home consumption) | Exempt from state sales tax |
|---|---|
| Prepared and restaurant food | Taxable at the full combined rate (7.625%) |
| Candy and soft drinks | Usually taxable even where groceries are exempt |
| Prescription medicine | Exempt |
Source: New Mexico Taxation and Revenue Department · rates as published for 2026
This page summarizes the general rule. Every state writes exceptions for specific products, and local jurisdictions can differ from the state treatment. Confirm your situation with the New Mexico Taxation and Revenue Department or a tax professional before relying on it for filing.
Combined rates in New Mexico
What a taxable purchase actually costs in New Mexico.
Frequently asked
Answers pulled from the same rule set.
- Is there sales tax on groceries in New Mexico?
- No. Groceries bought for home preparation are exempt from New Mexico state sales tax. Prepared and restaurant food is still taxable.
- Is prepared food taxed differently than groceries in New Mexico?
- Yes. New Mexico treats hot, ready-to-eat and restaurant food as a taxable retail sale even where unprepared grocery food is exempt or reduced.
- Are prescription drugs taxable in New Mexico?
- No. Prescription medicine is exempt from sales tax in New Mexico.
More New Mexico guides
Other New Mexico rules that change the total.