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Instead of collecting a sales tax, New Mexico collects a gross receipts tax. The business almost always passes the tax onto the consumer, either as a separate line item or as part of the retail price. The gross receipts tax rate varies from 5.125 percent to 8.8675 percent, depending on the business location.

Types of taxes

New Mexico has several taxes in addition to the gross receipts taxes, including a compensating tax, which is the same as the use tax rate in other states. Some are levied on wholesalers and manufacturers, while others are levied on consumers. If a tax is levied on a wholesaler or retailer and is industry-specific, the retailer might list the tax separately or include it in the cost of the item or service.

Sales and use tax rate (Gross receipts tax)

The gross receipts tax, which is the same as other states’ sales tax rate, is not statewide. Instead, it is based on local jurisdictions. The compensating tax, or use tax, sometimes called the “buyer pays” tax, works like the use tax in other states. When a business purchases taxable tangible personal property without paying the tax and uses the property instead of reselling it, the business must pay the compensating tax.

If a business purchases taxable items from out of state and does not pay tax and does not resell the items, it must pay New Mexico’s compensating tax. This tax is the same rate as the gross receipts tax. Businesses must file compensating taxes (use tax return) on Form TRD-41412. The tax is due on or before the 25th day of the month following the reporting period.

Lodging (Hotel room occupancy tax)

New Mexico’s lodging tax is set by local municipalities.

Vehicle rentals

New Mexico has a vehicle rental tax for leases of terms of six months or less. The vehicle must be part of a fleet of five or more leased vehicles and accommodate six or fewer adults. The tax is 5 percent of the gross receipts. Businesses can report the motor vehicle rental tax on CRS-1 Form. The vehicle rental tax is due on the 25th day of the month following the month the business collected the taxes.

Marijuana excise tax

Adult-use marijuana sales will start on April 1, 2022. The tax on adult use is in addition to the gross receipts tax for the local jurisdiction.

The excise tax is a statewide tax and is 12 percent of sales until July 1, 2025. At that time, the tax gradually rises to 18 percent, beginning July 1, 2030.

Medical marijuana is not taxable. Businesses selling medical marijuana can apply for an exemption from the gross excise tax if the consumer has a prescription.

911 Emergency surcharge

All telecommunications companies must collect $0.51 per subscriber for the 911 Emergency Surcharge. The surcharge applies to wired and wireless access.

Alternative fuel tax

New Mexico charges an alternative fuel tax on those who distribute liquefied petroleum gas, compressed natural gas, liquefied natural gas, or a water-phased hydrocarbon fuel emulsion for use as a fuel for motor vehicles. The tax is $0.12 per gallon.

Users who use any of these fuels in a motor vehicle can pay an annual tax based on vehicle weight:

  • 0 to 6,000 pounds GVW: $60
  • 6,001 to 16,000 pounds GVW: $100
  • 16,001 to 26,000 pounds GVW: $300
  • 26,001 to 40,000 pounds GVW: $60
  • 40,000 to 54,000 pounds GVW: $1,100

Cigarette tax

New Mexico charges a cigarette tax of $1.66 per pack for packs of 20 or fewer cigarettes. If the pack contains 25 cigarettes, the tax is $2.075.

Discretionary taxes (Local tax rates) on sales of goods

The gross receipts tax is a local tax based on local jurisdiction and is similar to a local sales tax. Tax returns are filed on retail sales with your jurisdiction’s tax rate.

Bernalillo

  • 6.4375 Percent
    • Laguna Pueblo (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Sandia Pueblo (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • State Fairgrounds
    • Santolina TID Districts 1 through 20
    • Upper Petroglyphs TID Districts 1 through 9
  • 6.5208 Percent: Any district in Bernalillo not listed elsewhere
  • 7.4375 Percent: Los Ranchos de Albuquerque
  • 7.8750 Percent
    • Albuquerque
    • Edgewood (Bernalillo)
    • 19 Pueblos District (AISD Property, sales to tribal members or entities and sales to tribal non-members by tribal non-members, businesses located on Pueblo land within the city limits and within the water district and city limits, property owned by 19 Pueblos of NM).
    • Lower Petroglyphs TID District
    • Mesa Del Sol TID District 1
    • Village of Trees
    • Winrock Town Center TID Districts 1 and 2
  • 8.1250 Percent: Rio Rancho

Catron

  • 6.3125 Percent
    • Pueblo of Acoma (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Any district in Catron not listed elsewhere
  • 8.0000 Percent: Reserve

Chaves

  • 6.8958 Percent: Lake Arthur
  • 7.3958 Percent: Dexter
  • 7.5833 Percent: Hagerman
  • 7.8333 Percent: Roswell
  • 6.8125 percent: The rest of the county

Cibola

  • 6.8125 Percent
    • Laguna Pueblo (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Pueblo of Acoma (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Pueblo of Zuni (Sales to tribal members or entities and sales to non-tribal members by non-tribal members).
    • Remainder of county
  • 8.0000 Percent: Milan
  • 8.1250 Percent: Grants

Colfax

  • 6.0833 Percent
    • Raton Municipal Airport
    • Surgarite Canyon – Raton
    • Remainder of county
  • 6.8333 Percent: Maxwell
  • 7.7708 Percent
    • Angel Fire
    • Springer
  • 7.8833 Percent: Eagle Nest
  • 8.1458 Percent: Cimarron

Curry

  • 6.1250 Percent: Remainder of County
  • 6.9375 Percent: Grady
  • 7.5625 Percent: Texico
  • 7.7500 Percent: Melrose
  • 8.1875 Percent: Clovis

De Baca

  • 6.7500 Percent: Remainder of County
  • 8.0625 Percent: Fort Sumner

Dona Ana

  • 6.7500 Percent: Remainder of County
  • 7.0000 Percent: Anthony (Water and Sanitation District) – All except Municipality B, which has a tax rate of 8.6250 percent
  • 7.8125 Percent: Hatch
  • 8.1875 Percent: Mesilla
  • 8.3125 Percent:
    • Downtown TID – Las Cruces
    • Las Cruces
  • 8.3750 Percent: Anthony
  • 8.4375 Percent: Sunland Park

Eddy

  • 5.9583 Percent: Remainder of county
  • 6.8333 Percent: Hope
  • 7.6333 Percent: Loving
  • 7.6458 Percent: Carlsbad
  • 7.8958 Percent: Atresia

Grant

  • 6.5625 Percent: Remainder of county
  • 7.6250 Percent:
    • Hurley
    • Santa Clara
  • 7.8750 Percent: Bayard
  • 8.0000 Percent: Silver City

Guadalupe

  • 6.4375 Percent: Remainder of county
  • 8.2500 Percent: Vaughn
  • 8.5000 Percent: Santa Rosa

Harding

  • 6.1250 Percent: Remainder of county
  • 6.9375 Percent: Mosquero
  • 7.3125 Percent: Roy

Hidalgo

  • 6.1875 Percent: Remainder of county
  • 6.6875 Percent: Virden
  • 7.7500 Percent: Lordsburg

Lea

  • 5.5000 Percent:
    • Remainder of county
    • Lovington Industrial Park
  • 6.8125 Percent:
    • Hobbs
    • Tatum
  • 7.2500 Percent: Lovington
  • 7.3125 Percent: Eunice
  • 7.4375 Percent: Jal

Lincoln

  • 5.5000 Percent:
    • Bonito Lake – Alamogordo (Land owned by Alamogordo outside Alamogordo boundaries).
    • Remainder of county
  • 6.8125 Percent: Capitan
  • 6.9375 Percent: Corona
  • 7.4250 Percent: Carrizozo
  • 7.4375 Percent: Ruidoso Downs
  • 8.4375 Percent: Ruidoso

Los Alamos

  • The city and county have a gross receipts tax of 7.3125 percent.

Luna

  • 6.8750 Percent: Remainder of county
  • 7.9375 Percent: Columbus
  • 8.2500 Percent: Deming

McKinley

  • 6.7500 Percent:
    • Pueblo of Zuni (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Remainder of county
  • 8.3125 Percent: Gallup

Mora

  • 6.7708 Percent: Remainder of county
  • 7.7708 Percent: Wagon Mound

Otero

  • 6.3125 Percent:
    • Alamogordo Land (Land owned by Alamogordo outside Alamogordo boundaries).
    • Remainder of county
  • 7.7500 Percent:
    • Cloudcroft
    • Tularosa
  • 8.1250 Percent: Alamogordo

Quay

  • 6.6875 Percent: Remainder of county
  • 8.0000 Percent: House
  • 8.3750 Percent:
    • Logan
    • San Jon
    • Tucumcari

Rio Arriba

  • 6.8750 Percent:
    • Remainder of county
    • Jicarilla Apache Nation (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Ohkay Owingeh Pueblo (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Pueblo de San Ildefonso (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Santa Clara Pueblo (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
  • 8.5625 Percent: Chama
  • 8.9375 Percent:
    • Espanola (Rio Arriba)
    • Espanola/Ohkay Owingeh Pueblo (Sales to tribal members or entities and sales to tribal non-members by tribal non-members, businesses located on Pueblo land within city limits).
    • Espanola/Santa Clara Grant (Sales to tribal members or entities and sales to tribal non-members by tribal non-members, businesses located on Pueblo land within city limits).

Roosevelt

  • 6.6250 Percent: Remainder of county
  • 7.1250 Percent:
    • Causey
    • Floyd
  • 7.3750 Percent: Dora
  • 8.0000 Percent: Elida
  • 8.1875 Percent: Portales

Sandoval

  • 6.7350 Percent:
    • Remainder of county
    • Jemez Pueblo (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Jicarilla Apache Nation (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Laguna Pueblo (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Pueblo de Cochiti (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Pueblo de San Ildefonso (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Sandia  Pueblo (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Santa Ana Pueblo (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Kewa Pueblo (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
  • 6.875 Percent: San Ysidro
  • 7.1875 Percent:
    • Bernalillo (City)
    • Edgewood
  • 7.4375 Percent: Jemez Springs
  • 7.6875 Percent:
    • Los Diamantes TIDD
    • Rio Rancho
    • Stonegate Communities TIDD
    • Village at Rio Rancho TIDD
  • 7.8125 Percent: Corrales
  • 8.3125 Percent: Cuba

San Juan

  • 6.6875 Percent: Remainder of county
  • 6.7500 Percent: Kirtland
  • 6.9375 Percent: Valley Water and Sanitation District
  • 7.0000 Percent: Valley Water and Sanitation District (Town of Kirkland – businesses located within the water district and city limits).
  • 8.3125 Percent: Bloomfield
  • 8.2750 Percent:
    • Aztec
    • Farmington

San Miguel

  • 6.8333 Percent: Remainder of county
  • 7.3958 Percent: Mosquero
  • 7.7708 Percent: Pecos
  • 8.3958 Percent: Las Vegas

Santa Fe

  • 7.1250 Percent:
    • Kewa Pueblo (Sales to tribal members or entities and sales to tribal non-members by tribal non-members, businesses located on Pueblo land within city limits).
    • Nambe Pueblo (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Pojoaque Pueblo (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Pueblo de Cochiti (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Pueblo de San Ildefonso (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Santa Clara Pueblo (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Pueblo of Tesuque (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Remainder of county
  • 8.1875 Percent: Edgewood
  • 8.4375 Percent:
    • Santa Fe (City)
    • Santa Fe Indian School/Nineteen Pueblos of NM (Sales to tribal members or entities and sales to tribal non-members by tribal non-members, businesses located on Pueblo land within city limits, property owned by 19 Pueblos of NM).
  • 9.0625 Percent:
    • Espanola
    • Esponala/Santa Clara Grant (Sales to tribal members or entities and sales to tribal non-members by tribal non-members, businesses located on Pueblo land within city limits).

Sierra

  • 6.9375 Percent:
    • Truth or Consequences Airport
    • Remainder of county
  • 8.1875 Percent:
    • Elephant Butte
    • Williamsburg
  • 8.5000 Percent: Truth or Consequences

Socorro

  • 6.5000 Percent:
    • Pueblo of Acoma (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Socorro Industrial Park
    • Remainder of county
  • 7.4375 Percent: Magdalena
  • 7.8125 Percent: Socorro (City)

Taos

  • 7.5000 Percent:
    • Picuris Pueblo (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Questa Airport
    • Taos Airport
    • Taos Pueblo (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Remainder of county
  • 7.7500 Percent:
    • El Prado Water and Sanitation District
    • El Valle de Los Ranchos Water and Sanitation District
  • 8.5625 Percent: Questa
  • 8.6875 Percent:
    • Taos (City)
    • Taos/Taos Pueblo (Sales to tribal members or entities and sales to tribal non-members by tribal non-members, businesses located on Pueblo land within city limits).
  • 8.8125 Percent: Red River
  • 8.9375 Percent:
    • El Prado Water and Sanitation District (Businesses located within the water district and the city limits).
    • El Valle de Los Ranchos Water and Sanitation District (Businesses located within the water district and the city limits).
  • 9.4375 Percent:
    • Taos Ski Valley
    • Taos Ski Valley TIDD

Torrance

  • 6.0625 Percent: Remainder of county
  • 7.3125 Percent: Encino
  • 7.5625 Percent: Willard
  • 7.9375 Percent: Mountainair
  • 8.1875 Percent:
    • Estancia
    • Moriarty

Union

  • 6.0625 Percent: Remainder of county
  • 7.5000 Percent:
    • Folsom
    • Grenville
  • 7.7500 Percent: Des Moines
  • 8.1250 Percent: Clayton

Valencia

  • 6.8750 Percent:
    • Laguna Pueblo (Sales to tribal members or entities and sales to tribal non-members by tribal non-members).
    • Remainder of county
  • 7.9375 Percent:
    • Peralta
    • Rio Communities
  • 8.3125 Percent: Belen
  • 8.5500 Percent: Bosque Farms
  • 8.6750 Percent: Los Lunas

Registering for and filing New Mexico’s taxes

New Mexico businesses must apply for a tax account at the New Mexico Taxation & Revenue Department. To register, you will need:

  • Federal tax ID number (FEIN);
  • Business registration number from the New Mexico Secretary of State; and
  • Contractor number if you are a construction company.

If a business wishes to file manually, it can still use tax forms for some of the tax due. It is safer and more convenient to remit sales tax returns (gross receipts taxes) using the online platform.

New Mexico sales tax holiday

New Mexico has a back-to-school tax holiday. It starts at 12:01 a.m. on Friday, August 5, 2022, and ends at midnight on Sunday, August 7, 2022. Gross receipts taxes are suspended on qualifying items.

New Mexico sales tax exemptions

New Mexico has several tax exemptions for taxpayers. Some of the more common exemptions include:

  • Tangible personal property sold to manufacturers.
  • Items purchased for resale.
  • Items sold to the U.S. Government or New Mexico governmental entity, governing body of an Indian nation, or a pueblo to use on the reservation.
  • Items sold to nonprofit organizations.
  • Prescription drugs.
  • Oxygen and oxygen services provided by a licensed Medicare durable medical equipment provider.

Remote and marketplace sellers tax liability

Remote sellers and marketplace sellers must collect gross receipts taxes if the previous year’s sales reach the $100,000 threshold. However, most collect the tax even if they do not meet the threshold, as it is a convenience to the buyer.

If a remote seller or marketplace seller does not collect taxes, the buyer must pay the compensating tax on the sales price.

However, if the marketplace facilitator collects the tax on behalf of the marketplace seller, neither the marketplace seller nor the buyer has to pay the tax.

FAQs

What is the New Mexico retail sales tax for 2022?

New Mexico does not have a statewide sales tax rate. Instead, local governments have a gross receipts tax. The state also does not have a statewide use tax rate. Instead, buyers pay compensation that bears the same rate as the gross receipts tax for their location.

How do I get a sales tax exemption certificate?

You can register for a resale certificate on the New Mexico Taxation and Revenue Department’s website once you obtain your CRS number.

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