Does New Mexico have a sales tax?

Not in the usual sense. New Mexico's gross receipts tax is imposed on the business for the privilege of doing business in the state, on receipts from selling goods, leasing property and performing most services. Businesses usually pass it on, and since July 1, 2019 they must state it separately on the invoice or tell the customer it's included. The business owes it either way.

Are services taxable in New Mexico?

Yes, most of them. Gross receipts tax covers receipts from performing services in New Mexico, so consulting, repairs, cleaning, design, legal and accounting work are taxable unless a specific deduction or exemption applies. Some services have their own rules, such as health care practitioners' receipts from insurers and managed care organizations, which are deductible, and services sold for resale with a nontaxable transaction certificate.

What is the gross receipts tax rate in Albuquerque?

Albuquerque's rate (location code 02-100) is 7.625% from July 1, 2026 to June 30, 2027, made up of the 4.875% state rate plus Bernalillo County and city increments. Unincorporated Bernalillo County is 6.1875%, Los Ranchos de Albuquerque is 7.875%, and Rio Rancho is 7.4375% in its Sandoval County part.

When are New Mexico gross receipts tax returns due?

Returns and payments are due on the 25th of the following month after the reporting period, moving to the next business day on weekends and holidays. New businesses are assigned monthly filing. If your combined tax averages $500 a month or less, you can apply to file quarterly or semiannually. You must file a zero return even if no tax is due.

What is an NTTC in New Mexico?

A nontaxable transaction certificate is the document that lets a seller deduct a sale that would otherwise be taxable, such as goods bought for resale (Type 2) or services bought for resale. The buyer gets the NTTC from the Taxation and Revenue Department through the Taxpayer Access Point and gives it to the seller. Resale certificates from other states aren't valid as NTTCs.

Sales tax

New Mexico Gross Receipts Tax in 2026: Rates, Sourcing, Services and Filing

Q: Do out-of-state sellers owe New Mexico gross receipts tax?

Yes, once they cross the threshold. A business without physical presence in New Mexico, including a marketplace provider, is engaging in business there if it had at least $100,000 of taxable gross receipts sourced to New Mexico in the previous calendar year. From then on it registers, collects and reports GRT on sales sourced to New Mexico at the rate for each delivery location.

New Mexico gross receipts tax 2026: the 4.875% state rate, July 2026 local rates for Albuquerque, Santa Fe and Las Cruces, sourcing rules, NTTCs and filing.

Edited by Sumeet YadavFounder & editor, MSMETOOLS · fact-checked against official sources

Updated October 2026 Verified against official sources 11 October 2026 18 min read

New Mexico gross receipts tax — MSMETOOLS guide cover

Contents (11)

1. How GRT differs from a sales tax
2. The state rate and how it fell to 4.875%
3. Local rates for 2026
4. Which location's rate applies: the sourcing rules
5. Deductions, exemptions and NTTCs
6. Worked examples in dollars
7. Registering for a New Mexico Business Tax ID
8. Filing TRD-41413 and paying on time
9. Remote sellers and marketplaces
10. Common mistakes and how to fix them
11. What to do next

New Mexico doesn't have a sales tax in the textbook sense. It has a gross receipts tax (GRT), a tax on the business for the privilege of doing business in the state, charged on receipts from selling goods, leasing property and, unlike most states, performing services. That difference catches out new owners, freelancers and out-of-state sellers every year. This guide covers the 2026 rules: the state rate, the July 2026 local rates for Albuquerque, Santa Fe, Las Cruces and other cities, how to pick the right location code, what's deductible, and how to register and file. Every figure was checked against the New Mexico Taxation and Revenue Department (TRD) in October 2026.

Quick answer

New Mexico's state gross receipts tax rate is 4.875%. Counties and cities add increments, so combined rates run from 5.25% to 9.4375% on TRD's July 2026 schedule, including 7.625% in Albuquerque and 8.1875% in Santa Fe. GRT is owed by the business on goods and most services, and must be shown separately if passed on.

Goods are taxed at the rate where the buyer receives them; most services where the product is delivered
Registration for a Business Tax ID is free
Returns are due on the 25th of the following month
Remote sellers owe GRT after $100,000 of taxable receipts in the prior year
Sales for resale are deductible with a nontaxable transaction certificate (NTTC)

How GRT differs from a sales tax

TRD describes GRT as a tax on persons engaged in business in New Mexico, imposed for the privilege of doing that business. It applies to the receipts of anyone who sells property in New Mexico, performs services in New Mexico, leases or licenses property used in New Mexico, grants a franchise used in New Mexico, or sells research and development services performed elsewhere whose product is first used in New Mexico. "Property" is broad: it includes real estate, tangible goods, electricity, manufactured homes and licenses of digital goods. "Services" includes construction and the materials that become part of a construction project.

Because the tax is on the seller, the business owes it whether or not it charges the customer. Most businesses pass it on, and since July 1, 2019 the law requires that, when you bill a customer, you either state the tax separately on the invoice or tell the customer that GRT is included in the price. If you quote a flat $500 for a job and say nothing, you still owe GRT on the $500, and you've broken the disclosure rule.

The second big difference is reach. Most states tax goods and a short list of services. New Mexico starts from the opposite end: every receipt is taxable unless a specific exemption or deduction applies. Consultants, architects, IT contractors, salons, landscapers, repair shops, photographers and lawyers all charge GRT. The exemptions and deductions run to dozens of pages in TRD's FYI-105 overview, and most deductions require specific documentation, often a nontaxable transaction certificate.

New Mexico pairs GRT with a compensating tax, its version of a use tax. It applies when you use property or services in New Mexico that would have been taxable but weren't taxed, such as equipment bought online from an out-of-state seller that didn't charge GRT, or items you manufacture and then use yourself. The rate is the 4.875% state rate plus any local option compensating tax, on the value at the time you bring the property in or start using it.

New Mexico GRT at a glance (2026)

4.875%

State GRT rate

Since July 1, 2023

7.625%

Albuquerque

July 2026–June 2027

8.1875%

Santa Fe (city)

8.39%

Las Cruces

free

Business Tax ID registration

The state rate and how it fell to 4.875%

The state portion was 5.125% for decades. Legislation in 2022, House Bill 163, cut it to 5% on July 1, 2022, which TRD called the first statewide reduction in 40 years, and then to 4.875% on July 1, 2023. It has stayed there since, and TRD's 2025–26 overview and its July 2026 rate schedule both show 4.875%. The state rate can change no more than once a year, usually in July. Some websites still show 5% or 5.125%, and some old invoicing templates still have those rates built in; if yours does, you've been overcharging since 2023.

The 4.875% figure is also the full rate in two special cases. Out-of-state businesses with no New Mexico location or resident salesperson that sell professional services into the state use location code 88-888 at the state rate only. And out-of-state sellers of research and development services whose product is first used in New Mexico use code 77-777, also at the state rate.

Local rates for 2026

The total rate is the state rate plus increments set by county commissions and city councils. All of it is paid to TRD, which keeps the state share and distributes the rest. A 2025 change made rates more predictable: starting July 1, 2025, TRD says local rates change only in July, except in special situations such as a natural disaster, when a county or city may still change its rate in January. TRD publishes a new rate schedule and a searchable location code map each year; it doesn't send notices of rate changes, so checking each July is your job.

On TRD's schedule for July 1, 2026 to June 30, 2027, non-tribal locations range from 5.25% in places such as unincorporated Lea and Lincoln counties up to 9.4375% in Taos Ski Valley. Tribal lands have their own location codes and rates under cooperative agreements, often with separate codes for sales to tribal members and to non-members.

Location (code)	Combined GRT rate, July 2026–June 2027
Albuquerque (02-100)	7.625%
Unincorporated Bernalillo County (02-002)	6.1875%
Los Ranchos de Albuquerque (02-200)	7.875%
Rio Rancho, Sandoval County part (29-524)	7.4375%
Rio Rancho, Bernalillo County part (02-647)	7.875%
Santa Fe city (01-123)	8.1875%
Las Cruces (07-105)	8.39%
Farmington (16-121)	8.1875%
Roswell (04-101)	8.2708%
Hobbs (06-111)	6.5625%
Out-of-state professional services (88-888)	4.875%

Notice the odd decimals. New Mexico local increments come in fractions such as one-eighth and one-sixteenth of a percent, and some, like Roswell's, end in four decimal places. Use the exact figure; rounding Las Cruces's 8.39% to 8.4% overcharges customers, and rounding down leaves you paying the gap.

Adobe-style shops along the Old Santa Fe Trail in downtown Santa Fe, New Mexico — A Santa Fe shop reports sales picked up at its counter at the city's 8.1875% rate, but goods it ships to Albuquerque use Albuquerque's rate.· Image: puroticorico (CC BY 2.0)

Which location's rate applies: the sourcing rules

Since July 1, 2021, New Mexico has used destination-based sourcing for most transactions. That means your rate depends on where the sale is sourced, which often isn't where your store or office is. TRD's FYI-105 and FYI-200 set out the order of rules, from section 7-1-14 of the New Mexico statutes.

Goods. If the buyer receives the goods at your New Mexico location, use your location's rate. If you ship or deliver, use the delivery address. If neither applies, fall back to an address in your business records for the buyer, then the address from the payment, and finally the location the goods shipped from.

Real property. Sales, leases and licenses of real estate are sourced to the property's location. Real estate commissions follow the property too.

Leased goods. Leases of vehicles, equipment and other movable property are sourced to the place of primary use, normally the address the lessee gives.

Professional services. Services that need an advanced degree or a state license, other than construction-related services and other than services performed in person, are sourced to the location of the person performing them. An Albuquerque accountant preparing returns for a Las Cruces client uses Albuquerque's rate.

Construction. Construction and construction-related services are sourced to the construction site.

Transportation. Moving people or goods is sourced to where they enter the vehicle.

Everything else. Other services are sourced to where the product of the service is delivered. A plumber fixing a pipe in a Rio Rancho home uses the Rio Rancho rate, wherever the plumber's shop is.

A few situations have their own rules. A craftsperson renting a booth at a fair treats the booth as a reporting location for items customers take away. Some counties have extra codes for municipal land outside city limits, such as the State Fairgrounds in Bernalillo County. TRD's location code map lets you type an address and get the code and rate, and that's the safest way to set up a new delivery area.

Picking the right GRT rate

Step 1

What did you sell?

Step 2

Goods

Where the buyer receives them

Step 3

Professional service

Your business location

Step 4

Construction

The job site

Step 5

Other services

Where the result is delivered

Step 6

Look up the code on TRD's map

Deductions, exemptions and NTTCs

New Mexico separates exemptions, which aren't reported at all in some cases, from deductions, which you report as gross receipts and then subtract with the right code. The most common deductions for small businesses are:

Sales for resale. Goods or licenses sold to a buyer who resells them are deductible under section 7-9-47, and services sold for resale under section 7-9-48. You need a nontaxable transaction certificate (NTTC) or other evidence TRD accepts.
Sales to manufacturers. Goods that become an ingredient or component of a manufactured product are deductible.
Food at grocery stores. Retail food stores, as defined for the federal SNAP program, can deduct qualifying food sales under section 7-9-92. Alcohol, tobacco and hot prepared food for immediate eating don't qualify, and restaurants don't get the deduction.
Health care. Health care practitioners can deduct payments from managed care organizations and health insurers under section 7-9-93, and from July 1, 2023 until July 1, 2028 also the copayments and deductibles their insured patients pay. Several Medicare-related deductions apply to specific providers.
Out-of-state sales. Goods delivered outside New Mexico generally aren't sourced to the state; report them under code 88-888 if you need to report the deduction.

An NTTC is a certificate the buyer obtains from TRD, usually online through the Taxpayer Access Point (TAP), and gives to the seller. Each type covers a particular kind of purchase; Type 2, for example, covers goods bought for resale. A seller who accepts a properly completed NTTC in good faith is protected even if the buyer misuses it. You need only one NTTC from each buyer for all transactions of the same type. Resale certificates from other states don't count as NTTCs, though out-of-state buyers who aren't required to register in New Mexico can use a Type NTTC-OSB, a multistate certificate or the Border States certificate for goods.

Red chile ristras hanging from the eaves of an adobe building in Chimayo, New Mexico — Restaurants pay GRT on meals at the local rate, while grocery stores can deduct qualifying food sales.· Image: Dicklyon (CC BY-SA 4.0)

Worked examples in dollars

An Albuquerque retail sale. A customer buys a $1,000 bicycle at an Albuquerque shop and takes it home. The shop uses code 02-100 at 7.625%: $76.25 of GRT, shown separately, for $1,076.25.

A Santa Fe furniture store that delivers. The same $2,000 sofa costs a different amount of tax depending on where it goes. Picked up in the store, it's sourced to Santa Fe at 8.1875%: $163.75. Delivered to a home in Las Cruces, it's sourced to the delivery address at 8.39%: $167.80. The store reports the second sale under Las Cruces's code 07-105, not its own.

A plumber crossing city lines. An Albuquerque plumbing company bills $500 for a repair at a home in the Sandoval County part of Rio Rancho. The repair is performed in person at the customer's home, so it isn't a "professional service" under the sourcing definition, which excludes in-person services; it's sourced to where the work is done: 7.4375%, or $37.19.

An accountant with clients statewide. A Santa Fe CPA prepares a $3,000 return for a client in Farmington. Accounting is a professional service, so it's sourced to the CPA's own location at 8.1875%: $245.63, even though Farmington's rate is the same 8.1875%.

An out-of-state engineering firm. A Denver engineering firm with no New Mexico office or resident staff billed New Mexico clients $140,000 last year for design work done in Colorado. That's over the $100,000 threshold, so this year it registers and charges GRT. Engineering requires a license, so it's a professional service, and with no New Mexico location the firm uses code 88-888 at 4.875%: $243.75 on a $5,000 invoice.

A wholesaler. An Albuquerque distributor sells $40,000 of goods to a Gallup retailer that resells them. With the retailer's Type 2 NTTC on file, the distributor reports the $40,000 and deducts all of it, so no GRT is due.

Try it — Albuquerque GRT on $1,000

Purchase AmountState

Local / County Rate

Purchase Amount$1,000.00

State Tax (6.25%)$62.50

Local Tax (2%)$20.00

Combined Rate8.25%

Total Amount (Including Tax)$1,082.50

Open the full Sales Tax Calculator (PDF, save, compare)

Registering for a New Mexico Business Tax ID

TRD's rule is that anyone who engages in business in New Mexico must register. Registration gives you a New Mexico Business Tax Identification Number, which many people still call a CRS number after the old Combined Reporting System, plus accounts for GRT, compensating tax and withholding if you have employees. It costs free: TRD says there is no fee to register or to get the ID.

Register online on TAP by choosing "Apply for a New Mexico Business Tax ID," or submit Form ACD-31015 at a district office by appointment or by mail. Mailed applications are processed in the order received and the registration certificate is mailed to you. Once registered, you can also request NTTCs on TAP.

Cities run their own licensing on top of state registration. Albuquerque, for example, requires a City Business License for every location and asks for a current copy of your state registration certificate with each application and renewal; see our Albuquerque business license guide for the fees and inspections.

Before your first New Mexico sale

0/6

Filing TRD-41413 and paying on time

GRT is reported on Form TRD-41413, the Gross Receipts Tax Return, with each line tied to a location code. You report gross receipts, deductions and the resulting tax for each location where you had sourced sales. Compensating tax goes on the same return system under its own lines. Returns and payments are due on the 25th of the following month after the end of the period; if the 25th falls on a weekend or holiday, the next business day. File even if no tax is due, using a zero report.

TRD assigns monthly filing when you register. If your combined tax averages $500 a month or less, you can apply on Form ACD-31015 to file quarterly or semiannually; keep filing monthly until TRD approves. If your liability later goes above that average for any 12 months, you must switch back to monthly. If your combined taxes averaged $1,000 or more a month in the previous calendar year, you must file electronically, and at $25,000 or more a month you must pay in usable funds by the due date using one of TRD's special payment methods.

New Mexico GRT filing rules (2026)

Your situation	Frequency or method	Due
New registration	Monthly	the 25th of the following month
Average tax $500 a month or less (on request)	Quarterly or semiannual	25th after each period
Average tax $1,000 or more a month	Monthly, filed electronically	25th of the next month
Average tax $25,000 or more a month	Payment in usable funds	By the due date

New registration

Frequency or method: Monthly
Due: the 25th of the following month

Average tax $500 a month or less (on request)

Frequency or method: Quarterly or semiannual
Due: 25th after each period

Average tax $1,000 or more a month

Frequency or method: Monthly, filed electronically
Due: 25th of the next month

Average tax $25,000 or more a month

Frequency or method: Payment in usable funds
Due: By the due date

Late returns cost 2% a month (max 20%) of the tax due, with a minimum of $5, which applies even to a late zero return. Interest is charged daily at a rate tied to the federal underpayment rate and keeps running until you pay, without the 20% cap. To fix a mistake, file an amended TRD-41413 for that period; to get money back, amend and file Form RPD-41071, the refund application.

Remote sellers and marketplaces

New Mexico's economic nexus rule counts only taxable receipts. A business without physical presence, including a marketplace provider, is engaging in business in New Mexico if it had at least $100,000 of taxable gross receipts sourced to the state in the previous calendar year; exempt and deductible receipts don't count. There's no transaction-count test. Once over, the seller registers, sources each sale to the buyer's location and reports at that location's rate.

Physical presence is broader than an office. TRD treats work done in New Mexico by your employees or independent contractors, leasing equipment in the state and licensing intangible property used there as physical presence. A Texas contractor that sends a crew to install equipment in Hobbs has nexus from the first job, whatever its sales total.

Marketplace providers that are engaging in business in the state collect and remit GRT on sales they facilitate. Marketplace sellers can deduct those receipts on their own returns, which is why sellers that sell only through a large platform often have little or no tax to pay, but may still need to register and report.

Common mistakes and how to fix them

Using your own rate for deliveries. Since 2021, delivered goods take the rate at the delivery address. Map your delivery areas to location codes and report each one separately.

Not charging GRT on services. Owners from states that don't tax services often miss that their consulting or repair work is taxable. Under-collected GRT comes out of your pocket in an audit. Amend the affected periods.

Accepting another state's resale certificate. It isn't an NTTC. Ask the buyer for a New Mexico NTTC, or an NTTC-OSB or multistate certificate if they aren't required to register.

Rounding rates. New Mexico rates go to four decimal places. Use the exact rate from TRD's schedule.

Keeping last year's rates. Rates change each July. Download the new schedule every summer, and check whether any of your locations moved.

Forgetting compensating tax. Equipment and supplies bought from out-of-state sellers without GRT owe compensating tax. Report it on the same filing.

Official links

What to do next

Register on TAP before your first sale, look up the location code for your business and every place you deliver or work, and set your invoices to show GRT on its own line. Collect NTTCs from resale customers before you deduct their sales, and put the 25th on your calendar. Use the sales tax calculator to check an invoice at 7.625% or your local rate, and our guide to calculating sales tax for tax-included prices. Opening in Albuquerque? Read the Albuquerque business license guide. Hawaii runs a similar business-level tax; compare our Hawaii general excise tax guide, and see Arizona, Texas and economic nexus if you sell across state lines.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

The state rate is 4.875%. Counties and cities add their own increments, so the combined rate depends on location. For July 1, 2026 to June 30, 2027, the Taxation and Revenue Department's map shows 7.625% in Albuquerque, 8.1875% in Santa Fe and 8.39% in Las Cruces, with non-tribal locations ranging from 5.25% to 9.4375%.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 11 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1.FYI-105 Gross Receipts & Compensating Taxes: An Overview (July 1, 2025 – June 30, 2026) — New Mexico Taxation and Revenue Department · accessed 11 October 2026
2.New Mexico Gross Receipts Tax: July 2026 to June 2027 (location codes and rates feature service) — New Mexico Taxation and Revenue Department · accessed 11 October 2026
3.Gross Receipts Tax Overview — New Mexico Taxation and Revenue Department · accessed 11 October 2026
4.Who must register a business? — New Mexico Taxation and Revenue Department · accessed 11 October 2026
5.GRT Filer's Kit, July 2023 — New Mexico Taxation and Revenue Department · accessed 11 October 2026
6.Tax laws take effect July 1 (press release, 2022) — New Mexico Taxation and Revenue Department · accessed 11 October 2026
7.New Mexico Tax Department Updates Gross Receipts Tax Codes, Rates — Bloomberg Tax · accessed 11 October 2026
8.New Mexico Tax Changes July 1, 2025 — REDW · accessed 11 October 2026

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We provide tools, guides and information for general educational purposes only. Always refer to official government websites for the latest and most accurate information.