New Mexico Gross Receipts Tax (GRT) Guide (2026)
New Mexico's Gross Receipts Tax stands in for sales tax at 4.875% state (about 7.6% in Albuquerque), applies to SaaS, and is owed by the seller. Nexus starts at $100,000.
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Key Takeaways
New Mexico has no traditional sales tax; it levies a Gross Receipts Tax (GRT) on the seller, at a 4.875% state rate plus local rates for a combined 4.875% to about 9.4% [1]. You have economic nexus once taxable gross receipts from New Mexico sales exceed $100,000 in the prior calendar year, with no transaction-count trigger [3]. Because the GRT applies broadly to services and licenses of digital goods, SaaS and digital products are taxable, while food sold at retail grocery stores is deductible and effectively exempt [2]. Protest an assessment within 90 days [5].
Taxability Snapshot
SaaS
Taxable
Clothing
Taxable
Groceries
Exempt
Digital Goods
Taxable
Sales Tax Rates
New Mexico does not have a conventional sales tax. It levies a Gross Receipts Tax (GRT) on the seller's receipts, with a state rate of 4.875% and local add-ons that push combined rates past 9% in some areas. New Mexico sources sales to the destination.
Component | Rate | Scope |
|---|---|---|
State GRT | 4.875% | Statewide |
Local | up to ~4.56% | Varies by location |
Combined | 4.875%–9.4375% | Varies by location |
Combined rates in major New Mexico cities (2026):
City | Combined rate |
|---|---|
Santa Fe | 8.19% |
Las Cruces | 8.39% |
Rio Rancho | 7.44% |
Albuquerque | 7.63% |
To find the combined rate for a specific address, use our US sales tax calculator.
Effective date:
Scheduled change:
Registration or Nexus Threshold
New Mexico economic nexus applies once your taxable gross receipts from sales into the state exceed $100,000 in the prior calendar year. There is no transaction-count trigger. Physical presence creates nexus immediately.
Marketplace Facilitator Law
New Mexico has treated marketplace providers as engaged in business, and subject to gross receipts tax collection, once they have at least $100,000 of taxable gross receipts sourced to New Mexico in the previous calendar year — the same economic-nexus threshold that applies to remote sellers generally — effective July 1, 2019. A qualifying marketplace provider collects gross receipts tax on sales, leases, and licenses it facilitates on behalf of marketplace sellers regardless of whether those sellers independently engage in business in the state. Under NMSA 1978 § 7-9-117, a marketplace seller may deduct from its own gross receipts any amounts already collected and paid by the marketplace provider on its behalf.[8]
Filing Frequency & Deadlines
New Mexico assigns monthly, quarterly, or semiannual filing based on tax volume. Returns are due the 25th of the month following the reporting period — later than most states' 20th.
Exemptions
New Mexico exempts (deducts) food sold at retail grocery stores and prescription drugs from the GRT. Because the GRT applies broadly to services, SaaS is taxable in New Mexico as a service provided to the customer.
Resale & Exemption Certificates
New Mexico uses Nontaxable Transaction Certificates (NTTCs) rather than resale certificates; a registered buyer executes an NTTC to the seller through TAP so the seller can deduct those receipts, with Type 2 used for resale [4]. Series 1992 NTTCs do not expire [4].
Penalties
Late filing or payment carries a penalty of 2% of the tax due per month, up to a 20% maximum, plus interest from the due date.
Audits & Appeals
You must file a written protest within 90 days of the mailing date of an assessment [5]. You choose either to protest without paying or to pay and claim a refund, not both [5].
Sources
[1] New Mexico TRD — Gross Receipts Overview (4.875% state, combined)
[2] New Mexico TRD — FYI-105 (GRT base, services, digital, food deduction)
[4] New Mexico TRD — Nontaxable Transaction Certificates (NTTC)
[8] New Mexico Taxation and Revenue Department — TRD-41413 Gross Receipts Tax Return Instructions
Verified July 2026 against New Mexico Taxation and Revenue Department published guidance.
Frequently Asked Questions
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