On this page
New Mexico car sales tax at a glance
| New Mexico | |
|---|---|
| Tax | motor vehicle excise tax (MVET) |
| State rate | 4% |
| Counties and cities add tax | No |
| Trade-in lowers the tax | Yes, tax is on the price minus the trade |
| Leases | Tax on each monthly payment |
Checked on the state's official sources on 2026-11-02. Rates change; the state's revenue department has the last word.
How to work out New Mexico sales tax on a car
Multiply the taxable price by the rate. In New Mexico the trade-in comes off first.
A $30,000 car with a $5,000 trade: $25,000 x 4% = $1,000 at the state rate.
4% MVET (since July 1, 2019) on the price paid, paid by the title applicant at titling instead of gross receipts tax; no local add-on. Dealer transfer service fees and insurance are excluded from the price.
Trade-ins
The value of any vehicle traded in on the purchase of another vehicle may be deducted; discounts and rebates at the sale also reduce the price paid (MVD manual ch. 6).
Leasing a car in New Mexico
Tax on each monthly payment. New Mexico: a vehicle bought for a lease of more than six months is exempt from MVET when the lease receipts are subject to gross receipts tax, so GRT (state plus local rate) applies to the lease payments instead. The lease calculator uses New Mexico's method when you pick the state.
Dealer doc fees
No cap found.