2024 New Mexico Tax-Free Weekend: Shop Local and Save

Each year, many people take advantage of discounts on the Saturday after Thanksgiving to kick off their holiday shopping. But did you know New Mexico has a special tax holiday on this day? This offers a unique opportunity to complete your seasonal shopping, support small businesses, and save on taxes—all at once.

What is the New Mexico Tax-Free Weekend?
New Mexico’s Gross Receipts Tax Holiday will take place on Saturday, November 30, 2024, from 12:01 a.m. to midnight. During this time, shoppers can purchase qualifying items without paying the usual 5.125% state tax. This holiday offers tax relief on a variety of products, including toys, books, electronics, cookware, and more.

What Businesses Are Participating?
The tax-free weekend is aimed at supporting small businesses in New Mexico. To participate in this special event, businesses must:

• Have 10 or fewer employees
• Primarily operate in New Mexico
• Not be a franchisee (i.e., part of a larger chain like Circle K or Big Frog Custom T-Shirts)

To help guide shoppers, the New Mexico Tourism Department releases a Holiday Gift Guide, showcasing local products that range from fine art to home décor. However, note that some items, like snacks, may not qualify for the tax holiday.

What Products Are Eligible for the Tax Holiday?
During the tax-free weekend, you can enjoy savings on many common holiday gifts, as long as the purchase is under $500. Some of the items included in the tax holiday are:

• Toys and games
• Clothing, footwear, and sporting goods
• Luggage, backpacks, and book bags
• Bedding, towels, and cosmetics
• Video games and gaming consoles
• Cookware and small home appliances for residential use
• Electronics such as computers, phones, and tablets
• Furniture and art supplies

You can also score savings on items that weren’t included in the August tax holiday, such as watches, jewelry, handbags, and musical instruments.

What’s Not Included in the Tax Holiday?
While many items are eligible, there are some exceptions. Items priced at $500 or more are not eligible for tax relief, even if they fall under a qualifying category.

Additionally, some items are outright excluded from the holiday:

• Snacks, soft drinks, or chocolate (However, most groceries are not subject to state tax in New Mexico)
• Gift cards
• Online sales, unless the business is based in New Mexico and the product is shipped to a New Mexico address

Keep in mind that while the state’s 5.125% gross receipts tax is waived, local taxes may still apply, and they can be as high as 3.94% in some areas.

Why Shop Local?
This tax-free weekend provides the perfect chance to support New Mexico’s small businesses. According to Rob Black, Economic Development Secretary-Designate, “The Small Business Administration reports that 345,000 workers, or 53% of the workforce, are employed in New Mexico’s small businesses. By shopping locally, we support jobs, strengthen our communities, and contribute to the state’s economy.”

Final Thoughts
New Mexico’s Small Business Saturday Tax Holiday is a great way to save money while helping to grow the local economy. Mark your calendar for November 30, 2024, and take advantage of this tax relief opportunity while shopping at New Mexico’s small businesses.

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