New Mexico state seal

New MexicoSales Tax

A Complete Guide For Businesses

State Rate
5.125%

Local Tax
yes

Phone
(505) 827-0700

General requirements

New Mexico does not charge sales tax to the buyer. The state does impose a gross receipts tax on the seller.

A gross receipts tax is a tax on the total gross revenues of a company, regardless of their source. This type of tax is similar to a sales tax but is levied on the seller rather than the buyer of goods or services. You'll receive a CRS-1 Filer's Kit twice a year, which is your source for information about filing and paying gross receipts tax.

For more information about gross receipts application and exemptions, go to New Mexico Public Access Law.

Rates

Business and occupational gross receipts tax rates range from 5.125% to 8.6875% depending on the location of the business.

How food is taxed

Prepared food is taxed at the full rate of 5.125%.

Nexus in New Mexico

Businesses establish a minimum gross receipts tax connection to the state if any of the following apply:

  • Have a business location in New Mexico
  • Have property stored in New Mexico
  • Has at least one employee in the state
  • Contract with a salesperson or other agent in New Mexico
  • Lease equipment used in New Mexico
  • Performs services
  • License the use of intangible property in New Mexico, or transport property using the taxpayer’s vehicles

Find out more about nexus in New Mexico.

Filing schedule

Due dates for gross receipts tax are as follows:

  • Semi-annual filers: 25th of the month following the tax period
  • Quarterly filers: 25th of the month following the tax period
  • Monthly filers: 25th of the month following the tax period

If your filing deadline falls on a weekend or holiday, the date will be pushed back to the next business day.

The CRS-1 Filer's Kit has more information about how often you have to file and pay.

Registering to do business in New Mexico

To register a new business in New Mexico you can submit an ACD-31015, Application for Business Tax Identification Number to any local tax office. You can also apply for a CRS identification number online.

Penalties

Penalties and interest apply for failure to file on time. Your CRS-1 Filer's Kit has more information with how and when to calculate penalties and interest.