New Mexico families preparing for the school year can save money this weekend while supporting local businesses during the state’s annual back-to-school tax holiday.
The gross receipts tax holiday begins at 12:01 a.m. Friday, July 25, and runs through midnight Sunday, July 27. During this period, qualifying back-to-school items are sold tax-free, potentially saving families an average of $43 to $46 per child based on typical spending patterns and the state’s 7.62% average combined tax rate.
The National Federation of Independent Business encourages families to use the tax-free weekend to shop at local retailers rather than large chains or online stores.
“Main Street businesses are the foundation of our economy, creating good-paying jobs and supporting charitable organizations that keep our communities thriving,” Jason Espinoza, NFIB New Mexico state director, said in a press release. “When you shop locally, especially during the gross receipts tax holiday weekend, more of your hard-earned dollars stay within your community.”
What qualifies for tax-free purchases:
New Mexico’s tax holiday covers specific back-to-school items with price limits, according to the state Department of Taxation & Revenue:
Clothing and shoes priced under $100 per item
Desktop, laptop, tablet or notebook computers under $1,000
Computer hardware and accessories under $500
School supplies for general education classrooms under $30 per item
The savings add up quickly for families. With the average American family spending $570 to $605 per child on back-to-school items nationally, and clothing representing the largest expense at around $231 per child, the tax relief provides meaningful financial benefit during an expensive time of year.
New Mexico’s gross receipts tax varies by location, combining the state rate of 5.125% with local government rates. The total tax ranges from just over 5% in some areas to 9.5% in others, with the statewide average at 7.62%.
The tax holiday, which New Mexico has offered annually since 2005, helps families offset rising back-to-school costs while providing local businesses with increased foot traffic during a crucial retail period.
Items specifically excluded by state law remain taxable even during the holiday weekend. Families should verify that items qualify before making purchases.
New Mexico families can save during back-to-school tax holiday weekend
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New Mexico families preparing for the school year can save money this weekend while supporting local businesses during the state’s annual back-to-school tax holiday.
The gross receipts tax holiday begins at 12:01 a.m. Friday, July 25, and runs through midnight Sunday, July 27. During this period, qualifying back-to-school items are sold tax-free, potentially saving families an average of $43 to $46 per child based on typical spending patterns and the state’s 7.62% average combined tax rate.
The National Federation of Independent Business encourages families to use the tax-free weekend to shop at local retailers rather than large chains or online stores.
“Main Street businesses are the foundation of our economy, creating good-paying jobs and supporting charitable organizations that keep our communities thriving,” Jason Espinoza, NFIB New Mexico state director, said in a press release. “When you shop locally, especially during the gross receipts tax holiday weekend, more of your hard-earned dollars stay within your community.”
What qualifies for tax-free purchases:
New Mexico’s tax holiday covers specific back-to-school items with price limits, according to the state Department of Taxation & Revenue:
The savings add up quickly for families. With the average American family spending $570 to $605 per child on back-to-school items nationally, and clothing representing the largest expense at around $231 per child, the tax relief provides meaningful financial benefit during an expensive time of year.
New Mexico’s gross receipts tax varies by location, combining the state rate of 5.125% with local government rates. The total tax ranges from just over 5% in some areas to 9.5% in others, with the statewide average at 7.62%.
The tax holiday, which New Mexico has offered annually since 2005, helps families offset rising back-to-school costs while providing local businesses with increased foot traffic during a crucial retail period.
Items specifically excluded by state law remain taxable even during the holiday weekend. Families should verify that items qualify before making purchases.
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