The New Mexico Gross Receipts Tax Calculator helps you quickly determine the gross receipts tax on a purchase in any area of New Mexico.
New Mexico Sales Tax Calculator
Calculate gross receipts tax for all areas in New Mexico with accurate state, county, and local rates
Total Amount
Tax Amount
Pre-Tax Amount
Tax Rate
Removing Tax: Pre-Tax = Amount ÷ (1 + Tax Rate)
The New Mexico Gross Receipts Tax Calculator helps you quickly determine the gross receipts tax on a purchase in any area of New Mexico. You can calculate gross receipts tax by adding it to a pre-tax amount or removing it from a total amount.
When adding gross receipts tax:
- Tax Amount = Pre-Tax Amount × Tax Rate
- Total Amount = Pre-Tax Amount + Tax Amount
When removing gross receipts tax:
- Pre-Tax Amount = Total Amount ÷ (1 + Tax Rate)
- Tax Amount = Total Amount – Pre-Tax Amount
New Mexico has a state gross receipts tax rate of 5.125%, with additional local option taxes imposed by counties and municipalities. The combined rates can vary significantly by location, ranging from 5.125% to over 9% in some areas.
Adding Gross Receipts Tax Example
Let’s say you want to calculate gross receipts tax on a $75 product in New Mexico with the state tax rate of 5.125%:
Pre-Tax Amount = $75
Tax Rate = 5.125% or 0.05125
Calculate the tax amount:
Tax Amount = $75 × 0.05125 = $3.84
Calculate the total amount:
Total Amount = $75 + $3.84 = $78.84
Removing Gross Receipts Tax Example
Now, let’s say you have a total amount of $78.84 and want to calculate the pre-tax amount and tax in New Mexico:
Total Amount = $78.84
Tax Rate = 5.125% or 0.05125
Calculate the pre-tax amount:
Pre-Tax Amount = $78.84 ÷ (1 + 0.05125) = $78.84 ÷ 1.05125 = $75.00
Calculate the tax amount:
Tax Amount = $78.84 – $75.00 = $3.84
Local Rate Example
In Albuquerque, the combined tax rate is 7.813%. Let’s calculate tax on a $75 product:
Pre-Tax Amount = $75
Tax Rate = 7.813% or 0.07813
Calculate the tax amount:
Tax Amount = $75 × 0.07813 = $5.86
Calculate the total amount:
Total Amount = $75 + $5.86 = $80.86
New Mexico Gross Receipts Tax Rates
New Mexico imposes a gross receipts tax (similar to sales tax) with a state rate of 5.125%. Counties and municipalities can impose additional local option taxes, resulting in combined rates that vary by location.
State Rate
County Rate
City Rate
Total Range
Major New Mexico City Tax Rates (2025)
| Location | State Rate | Local Rate | Total Rate |
|---|---|---|---|
| State Rate Only | 5.125% | 0% | 5.125% |
| Albuquerque | 5.125% | 2.688% | 7.813% |
| Santa Fe | 5.125% | 3.563% | 8.688% |
| Las Cruces | 5.125% | 3.063% | 8.188% |
| Rio Rancho | 5.125% | 3.063% | 8.188% |
| Taos | 5.125% | 3.563% | 8.688% |
| Roswell | 5.125% | 3.063% | 8.188% |
| Farmington | 5.125% | 2.688% | 7.813% |
| Clovis | 5.125% | 3.063% | 8.188% |
| Hobbs | 5.125% | 3.063% | 8.188% |
| Alamogordo | 5.125% | 3.063% | 8.188% |
| Carlsbad | 5.125% | 3.063% | 8.188% |
| Gallup | 5.125% | 3.063% | 8.188% |
| Deming | 5.125% | 3.063% | 8.188% |
| Las Vegas | 5.125% | 3.063% | 8.188% |
| Bernalillo County | 5.125% | 2.188% | 7.313% |
| Chaves County | 5.125% | 2.188% | 7.313% |
| Doña Ana County | 5.125% | 2.188% | 7.313% |
| Sandoval County | 5.125% | 2.813% | 7.938% |
| Los Alamos County | 5.125% | 2.438% | 7.563% |
New Mexico Gross Receipts Tax Exemptions
New Mexico provides several exemptions from gross receipts tax for certain types of goods and services. Some common exemptions include:
- Food and Groceries: Most food for human consumption is exempt from gross receipts tax
- Prescription Drugs: All prescription medications are exempt from gross receipts tax
- Medical Services: Services provided by licensed medical professionals are exempt
- Educational Services: Services provided by educational institutions are exempt
- Nonprofit Organizations: Certain transactions by qualifying nonprofits are exempt
- Government Agencies: Transactions with federal, state, and local governments are exempt
- Agricultural Products: Sales of agricultural products for human consumption are exempt
- Manufacturing Equipment: Equipment used directly in manufacturing is exempt
- Religious Organizations: Sales to religious organizations for religious purposes are exempt
- Indian Tribes: Transactions with certain Indian tribes and tribal members may be exempt
New Mexico Tax Deductions
New Mexico allows certain deductions from gross receipts before tax is calculated. These deductions effectively reduce the taxable amount for businesses:
- Cost of Goods Sold: Businesses can deduct the cost of tangible personal property sold
- Labor Costs: Direct labor costs related to production or services may be deductible
- Bad Debts: Uncollectible accounts may be deducted from gross receipts
- Intercompany Transactions: Sales between related entities may be deductible
- Trade-Ins: The value of property traded in may be deductible
- Research and Development: Certain R&D expenses may be deductible
- Energy Efficient Equipment: Purchases of energy-efficient equipment may qualify for deductions
- Renewable Energy Systems: Solar and wind energy systems may qualify for deductions
These deductions help businesses reduce their gross receipts tax liability and are an important consideration for tax planning in New Mexico.
Understanding New Mexico Gross Receipts Tax
What is New Mexico Gross Receipts Tax?
New Mexico imposes a gross receipts tax instead of a traditional sales tax. This tax is levied on businesses for the privilege of doing business in the state, based on their total gross receipts. The state rate is 5.125%, with additional local taxes imposed by counties and municipalities. Unlike sales tax, which is typically imposed on the buyer, gross receipts tax is imposed on the seller, though the cost is usually passed on to consumers.
Local Option Taxes
New Mexico allows counties and municipalities to impose additional local option gross receipts taxes. These local taxes can vary significantly by location, resulting in combined rates ranging from 5.125% to over 9% in some areas. Local governments use these taxes to fund local services and infrastructure projects.
Tax Collection
Gross receipts tax in New Mexico is collected by businesses and remitted to the New Mexico Taxation and Revenue Department. Businesses must register with the state and obtain a tax ID number before collecting tax. Returns are typically filed monthly, quarterly, or annually depending on the business’s tax liability.
Taxable Transactions
In New Mexico, most sales of goods, services, and property are subject to gross receipts tax. This includes retail sales, services, rentals, licensing, and even some intangible property. Unlike traditional sales tax, gross receipts tax is imposed on the seller rather than the buyer, though the cost is typically passed on to consumers in the form of higher prices.
Business Registration
Businesses operating in New Mexico must register for a tax ID number with the New Mexico Taxation and Revenue Department. Registration can be done online through the New Mexico Taxpayer Access Point (TAP) system, and businesses must begin filing returns once registered.
Filing Requirements
Gross receipts tax returns in New Mexico are typically filed monthly, quarterly, or annually, depending on the business’s tax liability. Filing is done through the New Mexico TAP system, and payments are due by the 25th of the month following the reporting period.
New Mexico Gross Receipts Tax for Businesses
Nexus Requirements
Businesses must register and pay gross receipts tax in New Mexico if they have nexus in the state. Nexus can be established through physical presence, economic activity, or other connections. New Mexico follows economic nexus rules, requiring out-of-state sellers to register if they have more than $100,000 in sales into the state in the previous calendar year.
Marketplace Facilitators
Marketplace facilitators like Amazon and eBay are required to collect and remit gross receipts tax on behalf of third-party sellers selling into New Mexico. This applies to marketplace facilitators with more than $100,000 in sales into the state.
Nontaxable Transaction Certificates
Businesses purchasing items for resale or other exempt purposes can provide Nontaxable Transaction Certificates (NTTCs) to sellers to avoid paying gross receipts tax. New Mexico has specific forms that must be completed and provided to the seller at the time of purchase.
Shipping and Handling
In New Mexico, shipping and handling charges are generally taxable if they are part of the sale of tangible personal property. If the charges are separately stated and related to transportation services, they may be exempt.
Penalties and Interest
New Mexico imposes penalties for late filing and late payment of gross receipts tax. The penalty is 2% of the tax due per month, up to a maximum of 10%, plus interest at the rate of 8% per year. Failure to file or pay can result in additional penalties and legal action.
Tax Calculation Services
Given the complexity of New Mexico’s gross receipts tax system with different rates in various locations, many businesses use automated tax calculation services to ensure accurate collection and remittance of gross receipts tax.