Gross Receipts 

Gross receipts are the total amount of money or value of other consideration received from: 

  • Selling property in New Mexico;
  • Leasing or licensing property employed in New Mexico;
  • Granting a right to use a franchise employed in New Mexico;
  • Performing services in New Mexico, and
  • Selling research and development services performed outside New Mexico, the product of which is initially used in New Mexico.

Gross receipts means the total amount of money or other consideration received from the above activities. Although the gross receipts tax is imposed on businesses, it is common for a business to pass the gross receipts tax on to the purchaser either by separately stating it on the invoice or by combining the tax with the selling price.

The gross receipts tax rate varies throughout the state from 5.125% to 8.6875% depending on the location of the business. It varies because the total rate combines rates imposed by the state, counties, and, if applicable, municipalities where the businesses are located. The business pays the total gross receipts tax to the state, which then distributes the counties' and municipalities' portions to them.

Changes to the tax rates may occur twice a year in January or July. We post new tax rate schedules online and in the CRS-1 Filer's Kit. Always check the current Gross Receipts Tax Rate Schedule to see if the rate for your business location(s) has changed.

For a complete overview of the gross receipts tax, see FYI-105: Gross Receipts and Compensating Taxes: An Overview.

Contact Information

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E- File
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Who Must Register?
FYI-102: Information for New Businesses
Gross Receipts Tax Workshops
Gross Receipts Tax Rates






Frequently Asked Questions

Q. What is New Mexico's sales tax rate?

New Mexico does not have a sales tax. It has a gross receipts tax instead. This tax is imposed on persons engaged in business in New Mexico. In almost every case, the person engaged in business passes the tax to the consumer either separately stated or as part of the selling price. Only in its effect on the buyer does the gross receipts tax resemble a sales tax. The gross receipts tax rate varies throughout the state from 5.125% to 8.8675% depending on the location of the business.
View the current Gross Receipts Tax Rate Schedule.

Q. What is taxable?

Generally speaking, sales and leases of goods and other property, both tangible and intangible, are taxable. Unlike many other states, sales and performances of most services are taxable in New Mexico.

Q. What are gross receipts tax rates and how are they determined?

The gross receipts tax rate varies throughout the state from 5.125% to 8.8675%. The total rate is a combination of rates imposed by: State of New Mexico; State of New Mexico;
- New Mexico counties, and
New Mexico municipalities.View the current Gross Receipts Tax Rate Schedule. The total gross receipts tax is paid to the state, which keeps its portion and distributes the counties' and municipalities' portions to them.

Because the combined gross receipts tax rate can change in January and July of every year, we issue a new tax rate schedule semiannually and include it in the CRS-1 Filer’s Kit . Always check the front cover of the current Filer’s Kit and the Gross Receipts Tax Rate Schedule (link in the preceding paragraph) to see if the rate for your business location(s) has changed.

Q. What is an exemption?

Exemptions from gross receipts are receipts that are not taxable and do not have to be reported. If all your receipts are exempt, you do not have to register with the Taxation and Revenue Department (TRD) for gross receipts tax purposes. However, you may have to register for withholding tax or to obtain nontaxable transaction certificates.You do not have to report nontaxable receipts on the CRS-1 Form. If you have a combination of exempt, deductible and taxable receipts, you should register and report only the deductible and taxable receipts on the CRS-1 Form.

Q. What is a deduction?


A deduction from gross receipts, like an exemption, is an amount not subject to tax. Unlike an exemption, however, you must report on Form CRS-1 both the gross receipts (in Column D) and the amount of deductions you are eligible to claim against those gross receipts (in Column E). Please note that they are gross, not net, receipts.

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