New Mexico is unlike almost every other state because it doesn’t impose a traditional sales tax. Instead, businesses generally collect Gross Receipts Tax (GRT) on taxable sales of goods and many services. If you sell products or services in New Mexico, you may be required to register, collect, and remit Gross Receipts Tax.
New Mexico Gross Receipts Tax at a Glance (2026)
| Topic | Key Information |
| State Gross Receipts Tax | 5.125% |
| Local Gross Receipts Taxes | Yes – varies by city and county |
| Economic nexus | $100,000 in sales |
| Gross Receipts Tax account required | Yes |
| Filing frequency | Monthly, quarterly or semi-annually |
| Registration | New Mexico Taxpayer Access Point (TAP) |
When Do You Have Gross Receipts Tax Nexus in New Mexico?
Unlike most states, New Mexico requires businesses with nexus to register for Gross Receipts Tax (GRT) rather than sales tax.
You generally have Gross Receipts Tax nexus if your business:
- Has a storefront, office, warehouse, employees, or inventory in New Mexico.
- Uses a third-party fulfilment centre located in New Mexico.
- Exceeds $100,000 in gross sales into New Mexico during the current or previous calendar year.
If you meet any of these conditions, you’ll generally need to register with the New Mexico Taxation and Revenue Department and begin collecting Gross Receipts Tax.
What Is Taxable in New Mexico?
One of the biggest differences between New Mexico and most other states is that Gross Receipts Tax applies to many services as well as sales of goods. Businesses moving into New Mexico often assume services are exempt because that’s the case in many states. However, New Mexico taxes a much wider range of business activities.
Taxable goods include:
- Electronics
- Furniture
- Clothing
- Household items
- Many digital products
Many taxable services include:
- Professional services, such as consulting and advertising
- Repair services
- Construction services
- Landscaping
- Software and technology services in many circumstances
Unlike traditional sales tax states, businesses providing services should carefully determine whether Gross Receipts Tax applies before issuing invoices.
Common deductions and exemptions include:
- Sales for resale supported by appropriate documentation.
- Certain healthcare services.
- Some governmental transactions.
- Specific nonprofit deductions where permitted.
- Other deductions allowed under New Mexico law.
Businesses claiming deductions should retain documentation supporting every transaction in case of audit.
How to Register for New Mexico Gross Receipts Tax
RBusinesses that establish nexus should register before making taxable sales.
Registration is completed online through the New Mexico Taxpayer Access Point (TAP).
- Create an account through the TAP portal.
- Complete the Combined Reporting System (CRS) registration.
- Provide your EIN and business information.
- Receive your CRS Identification Number.
- Begin collecting Gross Receipts Tax.
There is no fee to register. Most online applications are processed within a few business days.
Once registered, businesses are responsible for collecting the correct Gross Receipts Tax rate and filing returns according to their assigned filing frequency.
New Mexico Gross Receipts Tax Rates
New Mexico has a state Gross Receipts Tax rate of 5.125%, but most businesses will charge a higher combined rate because cities and counties can impose additional local Gross Receipts Taxes. As a result, the total rate paid by customers varies depending on where the sale is sourced.
New Mexico generally uses destination-based sourcing for most transactions. This means the Gross Receipts Tax rate depends on where the product is delivered or where the service is received, rather than where the seller is located. Because local rates frequently change, businesses should use the New Mexico Taxation and Revenue Department’s rate lookup tool or automated tax software to calculate the correct tax rate.
Filing Requirements
Collecting Gross Receipts Tax is only part of your responsibility. You must also file returns and remit the tax you’ve collected to the New Mexico Taxation and Revenue Department.
| Filing Frequency | Typical Requirement |
| Monthly | Higher Gross Receipts Tax liability |
| Quarterly | Moderate Gross Receipts Tax liability |
| Semi-Annually | Lower Gross Receipts Tax liability |
The Taxation and Revenue Department will notify you of your assigned filing frequency after registration. If your business grows or your tax liability changes significantly, your filing frequency may be updated. Businesses must file required returns even if no tax is due. Late filings may result in penalties, interest, and additional enforcement actions.
Marketplace Facilitator Rules
Marketplace facilitators such as Amazon, Etsy, eBay and Walmart Marketplace generally collect and remit New Mexico Gross Receipts Tax on marketplace sales. If you also sell through your own website or directly to customers, you’re responsible for collecting tax on those sales if you have nexus.
New Mexico Sales Tax Compliance Checklist
- Determine whether you have physical or economic nexus.
- Register through the New Mexico Taxpayer Access Point (TAP).
- Charge the correct Gross Receipts Tax rate for each transaction.
- Keep resale certificates and deduction documentation where applicable.
- File every return on time, including zero returns.
- Maintain accurate sales and tax records.
- Regularly review your sales to ensure continued compliance.
FAQs
Do I have to collect sales tax in New Mexico?
New Mexico uses Gross Receipts Tax (GRT) instead of a traditional sales tax. If you have nexus, you’ll generally need to collect GRT on taxable sales.
What is the economic nexus threshold in New Mexico?
You generally establish economic nexus if your business makes more than $100,000 in gross sales into New Mexico during the current or previous calendar year.
Are services taxable in New Mexico?
Yes. Unlike many states, New Mexico taxes many services as well as sales of goods.
Do marketplaces collect New Mexico Gross Receipts Tax?
Yes. Amazon, Etsy, eBay, Walmart Marketplace, and other marketplace facilitators generally collect and remit GRT on marketplace sales.
How do I register for Gross Receipts Tax?
Register online through the New Mexico Taxpayer Access Point (TAP) to obtain your Combined Reporting System (CRS) Identification Number.
Final Thoughts
New Mexico’s tax system is unique because it uses a Gross Receipts Tax rather than a traditional sales tax. Since the tax applies to many services as well as goods, businesses should carefully determine whether they have nexus, understand which transactions are taxable, and apply the correct combined state and local tax rates.
Need help with New Mexico Gross Receipts Tax registration, filings, or compliance? Contact our tax professionals today.
