Navigating Gross Receipts Tax in New Mexico

Navigating Gross Receipts Tax in
New Mexico

This guide provides an overview of Gross Receipts Tax in New Mexico, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within New Mexico.

Last Updated: November 2025

47%

of total revenue comes from the gross receipts tax, which applies to nearly all service providers.

New Mexico at a glance.

New Mexico
at a glance.

State

New Mexico

Tax Rate Range

5.125% - 9.0625%

Economic Nexus Threshold

$100,000

Filling Deadlines

25th of the month following the reporting period

Is SaaS Taxable?

Yes

Base Tax Rate:

5.125%

When should your
business collect Sales
Tax in New Mexico?

Since New Mexico has no general sales tax, most businesses don’t collect tax on in-state sales. Only sellers of taxable services like lodging, meals, or certain communications must register, collect, and remit those specific taxes. If you operate in other states with sales tax, you may need to collect their tax instead.

New Mexico physical sales tax nexus.

While general sales tax nexus in New Mexico is moot for general goods/services, these are typical physical presence triggers in states and mentioned in New Mexico-context literature

Sales tax physical nexus checklist for New Mexico

The following conditions might establish a physical nexus in New Mexico:

Having a business location (office/store/warehouse) in New Mexico.
Having property (tangible or intangible) stored or leased in New Mexico.
Employing any person in New Mexico (employees present in-state)
Contracting with a salesperson or agent in New Mexico.
Performing services in New Mexico (or licensing intangible property used in the state).

Which services are taxable in New Mexico

Which services are taxable in
New Mexico

Many services are taxable under New Mexico's gross receipts tax system. For example:

New Mexico sales tax information:

To calculate GRT in New Mexico, multiply your gross receipts by the combined state and local GRT rate for the location where the goods are delivered or the service is performed.

GRT applies broadly to receipts from doing business: selling tangible goods, leasing or licensing property used in NM, performing services in NM or services performed outside NM where the product is initially used in NM.

You register with the New Mexico Taxation & Revenue Department (NM TRD) through the online “Taxpayer Access Point (TAP)” system. Once registered you’ll receive a Combined Reporting System (CRS) identification number which you use to file and remit the GRT.

Once registered, you determine the correct rate for the location of the sale (state + local) and apply it to your gross receipts from the sale of goods/services (if taxable). Even though the tax is legally on the business, it is normally passed on to the customer.

Sales Tax return due dates explained.

In New Mexico the filing frequency for the gross receipts tax depends on the volume of your business. Most businesses with higher receipts file monthly, while those with moderate receipts may file quarterly, and very low-volume or seasonal filers may be eligible to file annually. The due date for each return is the 25th of the month after the reporting period. The TRD will assign your filing frequency when you register.

FAQs

If I sell digital services (SaaS) to a customer in New Mexico but I have no physical presence in the state, do I need to register and collect?

Yes - if you exceed the economic nexus threshold of $100,000 in taxable gross receipts into New Mexico, you must register and collect the GRT on those sales.

Can I use the state rate only, or do I always need to include local add-ons?

You must use the combined rate for the location of the sale (state + any applicable local/municipal rates). The base rate is the starting point but local jurisdictions add their rate.

What happens if I qualify for annual filing but then my receipts increase above the threshold?

Your filing frequency would change (likely to quarterly or monthly) when your gross receipts increase. The TRD assigns frequency based on your business activity and you would need to adjust accordingly—file more frequently and remit by the 25th of the following month.

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Navigating Gross Receipts Tax in New Mexico

Navigating Gross Receipts Tax in New Mexico

47%

State

New Mexico

Tax Rate Range

5.125% - 9.0625%

Economic Nexus Threshold

$100,000

Filling Deadlines

25th of the month following the reporting period

Is SaaS Taxable?

Yes

Base Tax Rate:

5.125%

When should yourbusiness collect SalesTax in New Mexico?

New Mexico physical sales tax nexus.

While general sales tax nexus in New Mexico is moot for general goods/services, these are typical physical presence triggers in states and mentioned in New Mexico-context literature

Sales tax physical nexus checklist for New Mexico

Which services are taxable in New Mexico

Which services are taxable in New Mexico

GRT applies broadly to receipts from doing business: selling tangible goods, leasing or licensing property used in NM, performing services in NM or services performed outside NM where the product is initially used in NM.

FAQs

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Navigating Gross Receipts Tax in
New Mexico

When should your
business collect Sales
Tax in New Mexico?

Which services are taxable in
New Mexico