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.
