Key takeaways
- New Mexico GRT rates: New Mexico levies a Gross Receipts Tax (GRT) instead of a conventional sales tax. The state base rate is 4.875%, and local GRT brings combined rates to roughly 4.875%–8.9375% depending on the location of the sale.
- Economic nexus: Remote sellers must register once they have $100,000 or more in gross revenue from New Mexico sales in the previous calendar year. There is no transaction-count threshold.
- Filing & penalties: Returns are due on the 25th of the month after the period. Failure to file costs 2% per month of the unpaid tax, up to 20%.
New Mexico sales tax key facts (2026)
| Item | New Mexico |
|---|---|
| Tax type | Gross Receipts Tax (GRT) — not a true sales tax |
| State base rate | 4.875% |
| Combined rate range | ~4.875%–8.9375% |
| Economic nexus threshold | $100,000 (no transaction count) |
| Sourcing | Destination-based (since July 1, 2021) |
Collect and file New Mexico sales tax with Taxually: LumaTax monitors your nexus, registers you and files your returns.
Is SaaS taxable?
Yes.
| Item | New Mexico |
|---|---|
| Groceries | Exempt (prepared food taxable) |
| Return due date | 25th of the month after the period |
| Governing agency | New Mexico Taxation and Revenue Department |
What is the sales tax rate in New Mexico?
New Mexico doesn’t have a conventional sales tax. Instead it imposes a Gross Receipts Tax (GRT) on the seller’s gross receipts from goods and services; businesses typically pass it on to customers, so it works like a sales tax at checkout. The statewide base GRT rate is 4.875% (reduced from 5.125% in recent years).
Local jurisdictions add their own GRT, bringing combined rates to roughly 4.875%–8.9375% depending on the location of the sale. Check the New Mexico Taxation and Revenue Department for specific rates.
Do you have sales tax nexus in New Mexico?
Nexus is the connection that obligates your business to collect and remit New Mexico GRT. You can establish it two ways — physically or economically. Either one is enough.
Physical nexus
You have physical nexus if you have a tangible presence in New Mexico, such as:
- Operating a business location in New Mexico
- Property or inventory stored in the state
- Employees or agents in New Mexico
- Performing services or leasing equipment in the state
Economic nexus
Out-of-state sellers establish economic nexus once they have $100,000 or more in gross revenue from New Mexico sales in the previous calendar year (effective July 1, 2019). There is no transaction-count threshold.
What is taxable in New Mexico?
Because it’s a gross-receipts tax, New Mexico taxes a very broad base — tangible personal property, leases, and most services (unlike states that exempt services). Most tangible goods are taxable, with groceries a key exception.
Is SaaS taxable in New Mexico?
Yes. SaaS is taxable under New Mexico’s GRT, which applies broadly to services and digital products.
How is food taxed in New Mexico?
Grocery food (such as fruits, vegetables, and meat for home consumption) is generally exempt (deductible) from the GRT. Prepared food is taxed at the full rate.
How to register for a New Mexico GRT permit
Obtain a New Mexico Business Tax Identification Number (formerly called a CRS number) before collecting. Taxually can register for you, or you can apply online through the Taxpayer Access Point (TAP) or by Form ACD-31015. Registration is free.
Have ready: personal identification (SSN, address), business identification (EIN, address), entity type, your New Mexico start date, accounting method, and expected gross receipts (which sets your filing frequency).
How to collect sales tax in New Mexico
New Mexico is destination-based — since July 1, 2021, GRT is calculated using the buyer’s location. Out-of-state businesses shipping into New Mexico apply the rate for the delivery location.
Filing and paying New Mexico GRT
Filing frequency is set by your expected receipts: monthly (averaging over $200/month), quarterly, or semi-annual for smaller amounts, with seasonal and temporary options available. Returns are due the 25th of the month following the period (next business day if a weekend or holiday).
File and pay electronically through TAP (small businesses paying under $750 may pay by check). Taxually’s software automates the full process.
Penalties for late or non-compliant filing
Failing to file or pay GRT on time triggers these penalties:
- Failure to file: 2% of the unpaid tax per month, up to 20%.
- Interest accrues on unpaid balances at the current rate.
Frequently asked questions
Does New Mexico have a sales tax?
Not exactly. New Mexico levies a Gross Receipts Tax (GRT) on sellers, which is typically passed on to customers like a sales tax. The state base rate is 4.875%.
What is the GRT rate in New Mexico in 2026?
The statewide base rate is 4.875%, with local taxes bringing combined rates to roughly 4.875%–8.9375%.
What is the economic nexus threshold for New Mexico?
$100,000 or more in gross revenue from New Mexico sales in the previous calendar year. There is no transaction-count threshold.
Is SaaS taxable in New Mexico?
Yes. The GRT applies broadly to services and digital products, including SaaS.
Are groceries taxed in New Mexico?
No, grocery food is generally exempt (deductible) from the GRT. Prepared food is taxable.
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