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New Mexico State Excise Taxes 2024 - Fuel, Cigarette, and Alcohol Taxes
| Gasoline: 17.00¢ per gallon | Cigarettes: $1.66 per pack | Liquor: $6.06 per gal | Wine: $1.70 per gal | Beer: 41¢ per gal |
What is an Excise Tax?
An excise tax is a tax directly levied on certain goods by a state or federal government. The most prominent excise taxes collected by the New Mexico state government are the fuel tax on gasoline and the so-called "sin tax" collected on cigarettes and alcoholic beverages.
An excise tax is not the same thing as the New Mexico Sales Tax.
The New Mexico Sales Tax is collected as a percentage of the final purchase price of all qualifying sales, and is collected directly from the end consumer of the product.New Mexico's excise taxes, on the other hand, are flat per-unit taxes that must be paid directly to the New Mexico government by the merchant before the goods can be sold. Merchants may be required to attach tax stamps to taxable merchandise to show that the excise tax was paid.
Even though excise taxes are collected from businesses, virtually all New Mexico merchants pass on the excise tax to the customer through higher prices for the taxed goods.
New Mexico per capita excise tax
New Mexico collects an average of $347 in yearly excise taxes per capita, one of the lowest average per capita excise taxes in the country.
New Mexico General Excise Taxes - Gasoline, Cigarettes, and More
New Mexico collects general excise taxes on the sale of motor fuel (gasoline and diesel), cigarettes (per pack), and cell phone service plans. Other general taxes, similar to excise taxes, may be collected on other items including gas guzzlers, firearms, tanning salons, transportation tickets, vehicle sales, and more.
New Mexico Gas Tax
44th highest gas taxThe New Mexico excise tax on gasoline is 17.00¢ per gallon, one of the lowest gas taxes in the country. New Mexico's excise tax on gasoline is ranked #44 out of the 50 states. The New Mexico gas tax is included in the pump price at all gas stations in New Mexico.
New Mexico Cigarette Tax
20th highest cigarette taxThe New Mexico excise tax on cigarettes is $1.66 per 20 cigarettes, higher then 60% of the other 50 states. New Mexico's excise tax on cigarettes is ranked #20 out of the 50 states. The New Mexico cigarette tax of $1.66 is applied to every 20 cigarettes sold (the size of an average pack of cigarettes). If a pack contains more then 20 cigarettes, a higher excise tax will be collected.
New Mexico Cellphone Tax
20th highest cellphone taxThe average tax collected on cell phone plans in New Mexico is $10.52 per phone service plan, higher then 60% of the other 50 states. New Mexico's average cellphone tax is ranked #20 out of the 50 states. The New Mexico cellphone tax is already included in the service plan price you pay to your service provider, and may be listed as "Misc. taxes and Fees" or "Other" on your monthly bill.
New Mexico Car Tax
New Mexico collects a registration fee and a title fee on the sale or transfer of cars and motorcycles, which are essentially renamed excise taxes. Unlike standard excise taxes, however, the end consumer must pay the tax directly to the New Mexico Department of Transportation and receive documentation (registration and title papers) proving the fees were paid.
New Mexico Alcohol Excise Taxes - Liquor, Wine, and Beer
New Mexico collects special excise taxes on the sale of all types of alcohol, subdivided into specific taxes on wine, beer, and liquor (hard alcohol other then wine and beer). Alcohol taxes are sometimes collectively referred to as "sin taxes", which also include excise taxes on cigarettes, gambling, drugs, and certain other items.
Please note that the IRS also collects a federal excise taxes on alcoholic beverages, which are included separately from New Mexico's alcohol taxes in the final purchase price.
New Mexico Beer Tax
13th highest beer taxThe New Mexico excise tax on beer is $0.41 per gallon, higher then 74% of the other 50 states. New Mexico's beer excise tax is ranked #13 out of the 50 states. The New Mexico beer tax is already added to the purchase price of all beer bought in New Mexico, whether in kegs, bottles, or cans.
New Mexico Wine Tax
5th highest wine taxThe New Mexico excise tax on Wine is $1.70 per gallon, one of the highest wine taxes in the country. New Mexico's excise tax on wine is ranked #5 out of the 50 states. The New Mexico wine tax is already added to the purchase price of all wine bought in New Mexico.
New Mexico Liquor Tax
22nd highest liquor taxThe New Mexico excise tax on liquor is $6.06 per gallon, higher then 56% of the other 50 states. New Mexico's excise tax on Spirits is ranked #22 out of the 50 states. The New Mexico liquor tax applies to all hard alcohol (alchoholic beverages other then beer and wine), and is already included in the purchase price by the retailer.
New Mexico Excise Tax Deductions & Refunds
Can I deduct my New Mexico Excise taxes?
Unlike the New Mexico Sales Tax, excise taxes are not generally deductible on New Mexico income tax returns or on your federal tax return. However, the IRS occasionally allows certain excise taxes to be deducted for certain tax years.
- Vehicle Tax Deduction
- New Mexico sales and excise taxes on cars or vehicles bought during 2009 may be deducted once from your federal tax return. You cannot deduct excise taxes for vehicles bought during other years.
- Phone Tax Deduction
- You may deduct excise taxes paid on long-distance phone calls between the years of 2003 and 2006 from your federal tax return.
Can I get a New Mexico Excise Tax Refund?
While sales tax refunds are available for goods that are purchased in New Mexico and exported, New Mexico excise taxes paid on goods are generally non-refundable. Incentives may exist allowing certain state of federal excise taxes to be refunded on goods bought for specific uses, but such incentives change frequently.
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New Mexico Excise Tax - References
- Tax Foundation, State Excise Tax Collections Per Capita, Updated 2009
- Tax Foundation, Gasoline Excise Taxes, Updated 2012
- Tax Foundation, Cigarette Excise Taxes, Updated 2012
- Tax Foundation, Liquor Excise Taxes, Updated 2011
- Tax Foundation, Beer Excise Tax Rates, Updated 2012
- Tax Foundation, Average Wine Taxes, Updated 2011
- Tax Foundation, Average Cell Phone Taxes, Updated 2010
