# New Mexico Gross Receipts Tax (GRT) Guide (2026)

Canonical: https://trykintsugi.com/sales-tax-guides/usa/new-mexico
Published: September 22, 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.

- **SaaS:** Taxable
- **Clothing:** Taxable
- **Groceries:** Exempt
- **Digital Goods:** Taxable

- **Effective date::** 
- **Scheduled change::** 

## 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

## 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](/us-sales-tax-calculator).

## 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)](https://www.tax.newmexico.gov/businesses/gross-receipts-overview/)

- [2] [New Mexico TRD — FYI-105 (GRT base, services, digital, food deduction)](https://realfile.tax.newmexico.gov/FYI-105.pdf)

- [3] [New Mexico TRD — Determining Nexus (economic nexus)](https://www.tax.newmexico.gov/businesses/determining-nexus/)

- [4] [New Mexico TRD — Nontaxable Transaction Certificates (NTTC)](https://www.tax.newmexico.gov/businesses/non-taxable-transaction-certificates-nttc/)

- [5] [New Mexico TRD — Protest Office (90-day protest)](https://www.tax.newmexico.gov/all-nm-taxes/protest-office/)

- [6] [New Mexico TRD — Back-to-School Tax Holiday](https://www.tax.newmexico.gov/news-alerts/tax-holiday/)

- [7] [New Mexico TRD — Taxpayer Access Point (registration)](https://tap.state.nm.us/TAP/)

- [8] [New Mexico Taxation and Revenue Department — TRD-41413 Gross Receipts Tax Return Instructions](https://realfile.tax.newmexico.gov/trd-41413ins.pdf)

Verified July 2026 against New Mexico Taxation and Revenue Department published guidance.

## Frequently Asked Questions

### What is New Mexico's gross receipts tax rate in 2026?

The state GRT rate is 4.875%, with combined local rates reaching about 7.6% in Albuquerque and up to 9.4375% in Taos Ski Valley.

### What is New Mexico's economic nexus threshold?

$100,000 in taxable gross receipts into New Mexico in the prior calendar year. There is no transaction-count trigger.

### Is SaaS taxable in New Mexico?

Yes. The GRT applies broadly to services, so SaaS is taxable as a service provided to the customer.

### Is the GRT the same as sales tax?

No. The Gross Receipts Tax is levied on the seller's gross receipts and applies more broadly than a retail sales tax, though it is typically passed through to buyers.

### When are New Mexico GRT returns due?

The 25th of the month following the reporting period — later than most states' 20th.

### What is the penalty for late New Mexico GRT?

2% of the tax due per month, up to a 20% maximum, plus interest.

## Related Reading

- [The New Mexico Sales Tax Exemption: 2026 Business Guide](/blog/new-mexico-sales-tax-exemption)

- [What is the Sales Tax on Clothing in New Mexico: A 2026 Guide for Retailers](/blog/what-is-the-sales-tax-on-clothing-in-new-mexico)

## US Sales Tax Calculator