New Mexico imposes a gross receipts tax, not a traditional sales tax
New Mexico does not impose a traditional sales tax. Instead, the state levies a gross receipts tax (GRT) on persons engaging in business in New Mexico. The legal incidence of the GRT falls on the seller for the privilege of doing business in the state, rather than on the purchaser as with a traditional sales tax. Although the tax is imposed on the seller, businesses commonly pass the cost of the tax on to customers, and when passed on, the tax must be separately stated on the invoice.
A person is "engaging in business" and subject to GRT if they have physical presence in the state and are conducting activity for direct or indirect benefit. Remote sellers without physical presence are also subject to GRT if, in the preceding calendar year, they had at least $100,000 of taxable gross receipts from sales, leases, licenses of tangible personal property, or sales of services sourced to New Mexico pursuant to Section 7-1-14 NMSA 1978.
The GRT applies to receipts from selling tangible personal property, performing services in New Mexico, and performing services outside New Mexico when the product of the service is initially used in New Mexico.
Source: 3.2.1 NMAC (New Mexico Administrative Code); FYI-105: Gross Receipts and Compensating Taxes – An Overview; New Mexico Taxation and Revenue Department – Gross Receipts Tax Overview
Economic nexus threshold for remote sellers
Remote sellers without physical presence in New Mexico have substantial nexus and are subject to gross receipts tax if, in the preceding calendar year, they had at least $100,000 of taxable gross receipts sourced to New Mexico. The threshold includes receipts from sales, leases, and licenses of tangible personal property, sales of services, and sales or licenses for use of real property. Receipts are sourced to New Mexico under the rules in Section 7-1-14 NMSA 1978.
Source: 3.2.1.9(A) NMAC
Statewide base gross receipts tax rate
Unable to confirm as of 2026-05-27.
Registration requirement for persons subject to gross receipts tax
Persons engaging in business in New Mexico and subject to gross receipts tax must register with the New Mexico Taxation and Revenue Department. Remote sellers and marketplace providers without physical presence are required to register if they had at least $100,000 of taxable gross receipts in the preceding calendar year. This registration obligation became effective July 1, 2019. Businesses register through the Taxpayer Access Point (TAP) online system and receive a New Mexico Business Tax Identification Number (NMBTIN).
Filing frequency and due dates for gross receipts tax returns
New Mexico Taxation and Revenue Department assigns each taxpayer a filing frequency when the taxpayer registers for gross receipts tax. The assigned frequency is based on the taxpayer's expected or actual average monthly tax liability.
Due date: Gross receipts tax returns and payments are due on the 25th day of the month following the end of the reporting period. If the 25th falls on a weekend or holiday, the due date extends to the next business day. For example, a monthly filer's January gross receipts tax return is due February 25.
Filing frequencies are assigned based on the taxpayer's tax liability:
- Monthly — For taxpayers whose combined tax liability averages more than $200 per month, or who elect to file monthly.
- Quarterly — For taxpayers whose total tax liability is less than $600 per quarter.
- Semi-annually — For taxpayers whose total tax liability is less than $1,200 per six-month period.
Taxpayers may elect to file more frequently than their assigned frequency.
Electronic filing requirement: Taxpayers whose average monthly gross receipts tax liability during the preceding calendar year equaled or exceeded $1,000 must file and pay electronically through the Taxpayer Access Point (TAP).
Zero returns: Taxpayers must file a return for each assigned filing period even if no gross receipts tax was collected during that period. Failure to file a zero return can result in penalties.
Marketplace provider collection and remittance obligations
New Mexico imposes gross receipts tax collection and remittance obligations on marketplace providers (the term used in New Mexico for what other states call marketplace facilitators). A marketplace provider is a person who facilitates the sale, lease, or license of tangible personal property or services, or licenses for use of real property, on a marketplace seller's behalf or on the provider's own behalf. "Facilitate" means listing or advertising the sale by any means (catalog, internet website, television, radio broadcast) and either directly or indirectly collecting payment from the customer and transmitting that payment to the seller, regardless of whether the marketplace provider receives compensation for its services.
Economic nexus threshold for marketplace providers
Marketplace providers without physical presence in New Mexico must register and collect gross receipts tax if they had at least $100,000 of taxable gross receipts in the previous calendar year from sales, leases, and licenses of tangible personal property, sales of licenses, and sales of services or licenses for use of real property sourced to New Mexico. This threshold and the marketplace provider collection obligation became effective July 1, 2019.
Gross receipts of marketplace providers
For gross receipts tax purposes, a marketplace provider's gross receipts include all receipts collected from sales, leases, and licenses facilitated for marketplace sellers that are sourced to New Mexico, even if the payment received from the buyer is eventually paid or transferred to the marketplace seller. The marketplace provider's gross receipts also include the fees charged by the provider to the marketplace seller. The marketplace provider is treated as the seller of the facilitated transaction and must collect and remit gross receipts tax on the full transaction amount, not just its commission.
Marketplace seller deduction
Marketplace sellers also have gross receipts from the same sales facilitated by the marketplace provider, creating dual taxation exposure. To prevent this, New Mexico provides a deduction for marketplace sellers. Receipts from sales facilitated by a marketplace provider may be deducted by the marketplace seller from its own gross receipts if the marketplace provider is registered with the New Mexico Taxation and Revenue Department and will collect and remit the gross receipts tax on those receipts. Marketplace sellers must still report the receipts on their gross receipts tax return (Form TRD-41413) and claim the deduction on the same return. If all receipts are deductible, no tax is owed by the seller, though filing the return remains required. Failure to file a return when required results in late-filing penalties even if no tax is due.
Relief of liability provisions
Under Section 7-9-4.3 NMSA 1978, a marketplace provider may be relieved of liability for failure to remit the correct amount of tax if the failure was due to incorrect information given by the marketplace seller (unless the provider and seller are affiliated persons), and the failure was not due to an error in sourcing the sale. When the marketplace provider is relieved of liability under this provision, the marketplace seller becomes solely liable for the amount of tax due. Beginning in calendar year 2024, the liability relief for a marketplace provider may not exceed three percent of the total tax due on receipts from sales by the marketplace provider as agent of a marketplace seller and sourced to New Mexico during the same calendar year.
Nontaxable transaction certificates
Buyers who make purchases from marketplaces and need to issue a nontaxable transaction certificate (NTTC) must execute the certificate to the marketplace provider who is paying the gross receipts tax and passing it on to the buyer, rather than to the underlying marketplace seller.
Source: FYI-206: Gross Receipts Tax and Marketplace Sales, New Mexico Taxation and Revenue Department; 3.2.1.9 NMAC