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Deb is the head of marketing at Numeral. He has worked with the likes of Shopify and Wonderment and has helped countless ecommerce stores scale seamlessly. With a background in finance, he often finds himself advising stores on sales tax and good financial systems.
April 2, 2024 Reviewed by
Kevin is a licensed CPA in the state of California. Prior to Numeral, Kevin operated multiple ecommerce businesses and worked at KPMG as a tax advisor.
Get a grip on New Mexico's tax landscape with our Sales Tax Guide, providing essential information on compliance, rates, and business regulations
In this articleGet a grip on New Mexico's tax landscape with our Sales Tax Guide, providing essential information on compliance, rates, and business regulations
| State taxing authority | New Mexico Taxation and Revenue Department |
|---|---|
| New Mexico base gross receipts tax rate | 5.125% |
| Local tax rates | Up to 4.125% |
| 2023 New Mexico sales tax rate | Up to 9.25% |
| Tax threshold | $100,000 in gross annual revenue |
| Website | http://www.tax.newmexico.gov/ |
| Tax Line | 505-827-0700 |
The New Mexico gross receipts tax rate in 2023 is 5.125%. This comprises a base rate of 5.125% plus a mandatory local rate up to 4.125%. Depending on the local gross receipts tax jurisdiction, the total tax rate can be as high as 9.25%.
You can look up the full table of gross receipts tax rates in each city and county in New Mexico.
| City/County | Gross Receipts Tax Rate |
|---|---|
| Albuquerque | 7.875% |
| Santa Fe | 8.4375% |
There have been no recent changes to New Mexico's statewide or local gross receipts tax rates. The rates have remained steady in recent years.
To calculate New Mexico gross receipts tax, you can use the following formula:
Gross receipts tax = (base rate + local rate) * taxable gross receipts
For instance, if the base rate is 5.125%, the local rate is 1.5%, and the taxable gross receipts are $100, then the gross receipts tax would be $6.625.
If you fail to pay New Mexico gross receipts tax on time, you may face penalties of 2% per month up to 20% of the tax owed. Interest will also accrue at an annual rate of 15% on any unpaid tax. Criminal charges may apply for tax evasion over $500.
No, New Mexico is not currently a member of the Streamlined Sales and Use Tax Agreement (SSUTA).
| Type of nexus | Threshold |
|---|---|
| Physical presence | Any physical presence |
| Economic nexus | $100,000 in gross annual revenue |
| Nexus with marketplaces | $100,000 in gross annual revenue facilitated by a marketplace |
If you make wholesale sales within New Mexico, you likely need a New Mexico Business Tax Identification Number (BTID) even if you do not make retail sales. Wholesale sales in the state are generally subject to gross receipts tax. Check with the New Mexico Taxation and Revenue Department to confirm your obligations.
If you make sales within New Mexico, even temporarily, you likely need a New Mexico seller's permit. There is no temporary seller's permit. All sellers must register for a standard seller's permit.
Some goods are exempt from New Mexico's gross receipts tax, including
Services are broadly taxable in New Mexico with a few exemptions.
No, most grocery food items are exempt from New Mexico's gross receipts tax. However, prepared foods, dietary supplements, and soft drinks are taxable.
Yes, clothing is generally subject to New Mexico gross receipts tax unless it qualifies as exempt medical equipment.
Digital products like music, ebooks, and software downloads are subject to New Mexico gross receipts tax. SaaS is also generally taxable.
Yes, software-as-a-service (SaaS) is considered taxable in New Mexico.
Yes, New Mexico taxes services very broadly. Most services performed in New Mexico are subject to the state's gross receipts tax.
New Mexico levies selective excise taxes on alcohol, tobacco, gasoline, special fuels, and marijuana, in addition to the general gross receipts tax.
New Mexico does not have a general sales tax on food and beverages. However, there are excise taxes on some specific items:
Out-of-state sellers with no physical presence in New Mexico may still be required to register for a seller's permit and collect gross receipts tax once they meet the $100,000 economic nexus threshold for sales into the state.
New Mexico has prepaid sales tax rates that apply to various fuel products, including:
| Fuel Product | Prepaid Sales Tax Rate (per gallon) |
|---|---|
| Gasoline | $0.17 |
| Diesel Fuel | $0.17 |
| Aviation Gasoline | $0.17 |
| Jet Fuel | $0.07 |
These are paid at the wholesale level but passed along to consumers in the retail price.
In addition to the statewide 5.125% gross receipts tax rate, New Mexico municipalities and counties can impose local gross receipts taxes up to 4.125% based on the location of the transaction.
To file and pay New Mexico gross receipts tax, you must submit your sales data and remit any tax due by the applicable deadline each period. The filing process is completed online through Taxation & Revenue Department website.
You can file yourself or use a third-party provider like TaxJar to automate your tax reporting and payments.
The New Mexico TRD assigns a filing frequency to businesses based on their anticipated taxable gross receipts: monthly, quarterly or semi-annually. The following due dates apply to New Mexico gross receipts tax returns:
| Period | Due Date |
|---|---|
| January | February 25 |
| February | March 25 |
| March | April 25 |
| April | May 25 |
| May | June 25 |
| June | July 25 |
| July | August 25 |
| August | September 25 |
| September | October 25 |
| October | November 25 |
| November | December 25 |
| December | January 25 |
| Period | Due Date |
|---|---|
| January – March (Q1) | April 25 |
| April – June (Q2) | July 25 |
| July – September (Q3) | October 25 |
| October – December (Q4) | January 25 |
Filers remitting semi-annually must file by July 25 (for January 1 - June 30) and January 25 (for July 1 - December 31).
Gross receipts tax returns in New Mexico are due by the 25th day of the month following the end of the filing period. For example, if filing monthly for January, the due date would be February 25.
The due dates vary based on your assigned filing frequency, but returns are always due by the 25th of the month following the end of the period. See the tables above for specifics.
Yes, once registered, you must file a gross receipts tax return each period, even if you collected $0 in tax. Failure to file a timely return can result in penalties.
You can submit a written request to receive an extension to file your return. However, you still must pay any tax owed by the original due date to avoid penalties and interest.
Yes, you can file an amended return in New Mexico to correct errors or omissions from a past return. You must pay any additional tax owed, plus interest and potential penalties.
New Mexico charges a penalty of 2% per month up to 20% on late-filed returns. Interest accrues at an annual rate of 15% on any unpaid tax. Total penalties plus interest cannot exceed 25% of taxes due.
If a business is selected for a gross receipts tax audit by the New Mexico Taxation & Revenue Department (TRD), a defined process will follow. Understanding what to expect can help businesses properly prepare.
There are a few reasons the TRD may select a business for audit, including:
Generally, larger companies with more complex operations are audited more frequently than small businesses. However, companies of any size can be selected at the TRD's discretion.
If you submit a protest but receive an unfavorable appeals determination from the TRD upholding the audit findings, you can formally appeal by filing a claim for refund with the New Mexico Tax Administration Hearings Office. This will initiate a hearing with a tax tribunal.
The appeals process can be complex, so working with a sales tax professional can be beneficial throughout an audit and appeal to achieve the best resolution for your business. Keeping detailed financial records is also key to supporting your compliance efforts.
You can register online through the New Mexico Tax & Revenue website. You'll need to provide your business identification details, ownership information, New Mexico activities start date, and accounting method, etc.
Once registered, you can log into your account to manage your tax obligations. There is no fee to obtain a seller’s permit.
Online sellers with no physical presence in New Mexico may still need to register to collect gross receipts tax once they exceed $100,000 in annual gross revenue from sales into the state. This establishes economic nexus.
You can also register voluntarily before meeting the threshold.
For questions on gross receipts tax compliance in New Mexico, contact:
There you have it—a comprehensive guide on New Mexico's sales tax regime. Need help filing taxes for your ecommerce store? Get a demo with Numeral now.
Deb is the head of marketing at Numeral. He has worked with the likes of Shopify and Wonderment and has helped countless ecommerce stores scale seamlessly. With a background in finance, he often finds himself advising stores on sales tax and good financial systems.
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