This blog was last updated on July 1, 2026
Although New Mexico doesn’t impose a traditional sales tax, businesses selling goods or services in the state are generally subject to the New Mexico Gross Receipts Tax (GRT). This New Mexico tax guide explains current New Mexico tax rates, gross receipts tax requirements, nexus thresholds, exemptions, filing obligations and other key considerations for businesses selling in New Mexico.
The New Mexico Gross Receipts Tax Rate
New Mexico imposes a statewide gross receipts tax (GRT) and compensating use tax rate of 4.875%.
Unlike many other states, New Mexico allows local jurisdictions to levy additional gross receipts taxes, meaning total tax rates vary depending on where a transaction occurs. Businesses should account for both state and New Mexico local taxes when calculating tax obligations.
What’s Taxable in New Mexico?
New Mexico implements what is called a gross receipts tax rather than a traditional sales and use tax. While many businesses search for information about sales tax in New Mexico, nearly all business transactions are instead governed by the state’s Gross Receipts Tax system.
Under New Mexico tax laws, engaging in business within the state is generally enough to create a tax obligation. Rather than taxing only retail sales of tangible goods, New Mexico gross receipts tax applies broadly to receipts from selling property, leasing property and performing many services.
A transaction qualifies for a deduction only when a specific statutory provision allows it.
Sales Tax Nexus in New Mexico
A seller is liable to collect and remit New Mexico sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
NM: Physical Nexus
Physical presence is created by having a business location, office, warehouse, vehicle, employee or other representative operating in the state.
NM: Economic Nexus
New Mexico enforces economic nexus for remote sellers. If your business has over $100,000 in sales during the previous calendar year, you may be required to register for and collect New Mexico gross receipts tax.
Businesses making remote or online sales into New Mexico should regularly evaluate whether they have established economic nexus and are required to collect and remit tax.
Learn more from the New Mexico Taxation & Revenue Department.
How to Register for a New Mexico Gross Receipts Tax License
New Mexico businesses or individuals selling tangible personal property or certain services to New Mexico consumers may need to register to collect gross receipts tax when meeting qualifying requirements. More information may be found here.
Additional information for new businesses can be found within Publication: FYI-102
New Mexico Sales Tax Exemptions
Certain sales in New Mexico are considered eligible for a deduction from the gross receipts tax, including:
- Food and food ingredients sold by qualifying retail stores
- Feminine hygiene products
- Agricultural items
- Utility installation services
Entity- or Use-Based Exemptions
Additionally, New Mexico provides deductions or exemptions for:
- Federally exempt nonprofit, charitable, religious and educational organizations
- Sales to enrolled tribal members on qualifying tribal land
- Government entities
How to Claim Sales Tax Exemption in New Mexico
To claim an exemption, an entity must provide an exemption certificate with the sale. The Treasury accepts Nontaxable Transaction Certificates (NTTC) ACD-31050 as the most used form.
Additional guidance on acceptable exemption formats can be found in FYI-204.
New Mexico Filing and Remittance Requirements
New Mexico offers multiple methods for filing and remitting gross receipts and compensating use tax.
- E-filing through Taxpayer Acccess Point (TAP)
- Paper filing using Form TRD-41413 and/ or Form GRT-PV
Important note: Tax returns for gross receipts tax and compensating use tax shall be e-filed, and payment remitted electronically, if the taxpayer’s average monthly tax liability for each tax during the preceding calendar year equaled or exceeded one thousand dollars ($1,000). For more information see the FYI-108.
Frequently Asked Questions
What Is New Mexico Gross Receipts Tax?
Unlike a traditional retail sales tax, New Mexico gross receipts tax is imposed on businesses for the privilege of doing business within the state. The tax applies broadly to receipts from selling goods, leasing property and providing many services, making it one of the most comprehensive transaction taxes in the United States.
Is New Mexico a part of the Streamlined Sales Tax (SST) initiative?
No, the state does not participate in the Streamlined Sales Tax (SST) initiative. More information concerning SST may be found here.
Does New Mexico have sales tax holidays?
Yes. New Mexico currently offers an annual back to school sales tax holiday that temporarily exempts qualifying purchases for participating retailers. Businesses should review current guidance each year for eligible products and dates.
Are there any special point of sale fees in New Mexico?
Santa Fe currently imposes a bag fee.
Does New Mexico apply sales tax to shipping charges?
Yes, New Mexico generally taxes shipping charges.For sourcing sales tax, is New Mexico origin or destination based?
New Mexico is a destination-based state.
How are New Mexico tax rates determined?
Total New Mexico tax rates consist of the statewide gross receipts tax rate plus any applicable local option taxes imposed by cities and counties. Because local rates vary, businesses should verify the correct rate based on where a transaction occurs.
What Is New Mexico compensating use tax?
New Mexico compensating use tax generally applies when taxable property is purchased without paying New Mexico gross receipts tax and is subsequently stored, used or consumed within the state.
Additional Resources
For more information on U.S. sales tax compliance across all 50 states, check out our:
New Mexico’s Gross Receipts Tax is unlike the sales tax systems used in most states, creating unique compliance challenges for businesses selling goods and services. Sovos helps organizations navigate complex state and local tax rates, automate gross receipts tax determination and simplify filing as requirements evolve. Learn more.