New Mexico does not impose a traditional sales tax. Instead, the state imposes Gross Receipts Tax (GRT) on sellers for the privilege of doing business. Sellers may pass the cost to buyers, but the legal tax is on gross receipts.
GRT rates vary by location, combining state, county, and municipal components. This article is educational information, not tax advice; confirm current rates, deductions, and forms with the New Mexico Taxation and Revenue Department.
GRT Deductions and NTTCs
New Mexico generally uses the terms deductions and Nontaxable Transaction Certificates (NTTCs), rather than sales-tax exemptions. A buyer provides the appropriate NTTC to the seller, who retains it and claims the qualifying deduction when filing.
| NTTC type | Common category |
|---|---|
| Type 2 | Resale |
| Type 5 | Services purchased for resale |
| Type 6 | Construction contractor materials and services |
| Type 9 | Tangible personal property purchased by qualifying nonprofits and government agencies |
| Type 11 | Tangible personal property consumed in manufacturing |
NTTCs are requested through the Taxpayer Access Point (TAP) and are transaction-specific. Keep the certificate and supporting records for audit purposes.
Qualifying for Deductions
Common categories include resale goods, manufacturing inputs, qualifying nonprofit and government transactions, construction materials, medical equipment, and qualifying food assistance. The exact deduction depends on the transaction and statutory criteria.
How to Obtain and Verify an NTTC
- Obtain a New Mexico Business Tax Identification Number.
- Request the appropriate NTTC through TAP.
- Provide the executed certificate to the seller before or at the transaction.
- Keep the NTTC and supporting documentation.
- Review current retention and renewal requirements.
Frequently Asked Questions
Resellers, manufacturers, qualifying contractors, nonprofits, and government entities are common users of NTTCs. Public schools and qualifying educational institutions may also qualify for deductions. New Mexico offers other incentives beyond GRT deductions, including programs for high-wage jobs, manufacturing, film, and renewable energy.
Automate New Mexico GRT Compliance
Kintsugi can help businesses apply location-based rates, organize NTTC records, classify transactions, and prepare accurate reporting workflows across jurisdictions.
Related resource: For current rates, nexus thresholds, filing deadlines, and FAQs, see Kintsugi's New Mexico Sales Tax Guide.
