New Mexico sales tax for salons

Are haircuts and salon services taxable in New Mexico?

Yes. New Mexico's gross receipts tax applies to receipts from any service performed in the state unless a specific exemption applies, and none covers haircuts, nail services or skin care, so the salon owes it on them and commonly passes it on to clients. Below: each kind of service, the products you sell, the rate and the permit a salon needs, each answered from the New Mexico Taxation and Revenue Department's own publications, rules or statutes, read on October 25, 2026.

Haircuts: Taxable
Nails: Taxable
Products you sell: Taxable
State rate: 4.875%

Administered by New Mexico Taxation and Revenue Department.The agency's page The state's own words

Services

Which salon services are taxable in New Mexico?

Yes. New Mexico's gross receipts tax applies to receipts from any service performed in the state unless a specific exemption applies, and none covers haircuts, nail services or skin care, so the salon owes it on them and commonly passes it on to clients.

Hair services: Taxable
Nail services: Taxable
Skin care and waxing: Taxable

Hair services: haircuts, color, styling, perms and shaves. Nail services: manicures, pedicures and enhancements. Skin care: facials, waxing and other hair removal, and makeup.

Products

Do salons charge sales tax on products in New Mexico?

Yes. Receipts from selling property in New Mexico are gross receipts under the Gross Receipts Tax, so products a salon sells to clients are taxable. The state rate is 4.875% plus local tax.

The rate

What is the sales tax rate in New Mexico?

Statewide tax: Gross Receipts Tax
State rate: 4.875%
Local sales taxes: Yes, added by cities, counties or districts

The rate a client pays depends on the salon's address: look it up with the New Mexico Taxation and Revenue Department.

The permit

Does a salon need a sales tax permit in New Mexico?

New Mexico Business Tax Identification Number. Register with the Taxation and Revenue Department before you charge gross receipts tax; registration is free and gives you a Business Tax Identification Number with a Gross Receipts Tax account.

Registration: New Mexico Business Tax Identification Number
State fee: Free

Register with the New Mexico Taxation and Revenue Department

Good to know

What else New Mexico says about salons and sales tax

The Gross Receipts Tax rate varies by location, so a salon should use the rate for the place where its service or product is delivered.
A salon cannot subtract its business expenses, such as shampoo, color and wax it uses up, from its gross receipts.
Since July 1, 2025, Gross Receipts Tax rates change only in July, except in special situations such as a natural disaster.

Sources

What New Mexico's official pages say

Each answer above, in the words of the New Mexico Taxation and Revenue Department's own publications, rules or statutes, read on October 25, 2026. This is not tax advice: rules and rates change, so confirm with the New Mexico Taxation and Revenue Department or an accountant.

Hair services: “Performing services in New Mexico, and performing services outside of New Mexico, the product of which is initially used in New Mexico”
tax.newmexico.gov
“service in New Mexico are subject to the gross receipts tax unless a specific exemption”
srca.nm.gov
Products you sell: “Selling property in New Mexico;”
tax.newmexico.gov
The tax and its rate: “Gross receipts tax (GRT) is imposed on businesses, but it is common for a business to pass the GRT on to the purchaser.”
tax.newmexico.gov
“STATE GROSS RECEIPTS TAX RATE = 4.875%”
tax.newmexico.gov
“GRT rate varies throughout the state because the total rate combines the rates imposed by the state, counties, and municipality for each location.”
tax.newmexico.gov
The permit: “After registering you will receive a New Mexico Business Tax Identification Number.”
tax.newmexico.gov
“There is no fee to register or obtain a Business Tax Identification Number.”
tax.newmexico.gov
The agency: “Anyone who engages in business in New Mexico must register with the Taxation and Revenue Department.”
tax.newmexico.gov
Also good to know: “In general, businesses will use the location code and tax rate corresponding to the location where their goods or the product of their service are delivered.”
tax.newmexico.gov
Also good to know: “No, there are not any deductions for business expenses.”
tax.newmexico.gov
Also good to know: “Starting July 1, 2025, rates will only change in July, unless there is a special situation such as a natural disaster where a county or municipality is able to change their rate in January.”
tax.newmexico.gov

Questions

New Mexico salon sales tax, answered

Are haircuts taxable in New Mexico?

Yes. On the New Mexico Taxation and Revenue Department's official pages, New Mexico's Gross Receipts Tax applies to haircuts, color, styling, perms and shaves, at 4.875% plus local tax.

Do nail salons charge sales tax in New Mexico?

Yes. On the New Mexico Taxation and Revenue Department's official pages, New Mexico's Gross Receipts Tax applies to manicures, pedicures and nail enhancements, at 4.875% plus local tax.

Are facials and waxing taxable in New Mexico?

Yes. On the New Mexico Taxation and Revenue Department's official pages, New Mexico's Gross Receipts Tax applies to facials, waxing and other hair removal, and makeup, at 4.875% plus local tax.

Do salons charge sales tax on products in New Mexico?

Yes. Receipts from selling property in New Mexico are gross receipts under the Gross Receipts Tax, so products a salon sells to clients are taxable. The state rate is 4.875% plus local tax.

Does a salon need a sales tax permit in New Mexico?

New Mexico Business Tax Identification Number. Register with the Taxation and Revenue Department before you charge gross receipts tax; registration is free and gives you a Business Tax Identification Number with a Gross Receipts Tax account.

What is the sales tax rate in New Mexico?

The statewide rate of New Mexico's Gross Receipts Tax is 4.875%, and cities, counties or districts add their own, so the rate a client pays depends on the salon's address. Check the rate for your address with the New Mexico Taxation and Revenue Department.

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Are Haircuts Taxable in New Mexico? Salon Sales Tax Rules | SalonAI