1. All NM Taxes
  2. Frequently Asked Questions
  3. What are the severance tax rates?

What are the severance tax rates?

Severance tax rates are:

Potash is 2 1/2% of taxable value
Copper is 1/2% of taxable value
Timber is 1/8% of taxable value
Pumice, gypsum, sand, gravel, clay, fluorspar and other nonmetallic minerals are 1/8% of taxable value
Lead, zinc, thorium, molybdenum, manganese, rare earth and other metals are 1/8% of taxable value
Gold and silver are 1/5% of taxable value
Coals tax rate, based upon the quantity severed and saved, varies according to surface or subsurface severing, the surtax in place, and coal surtax exemptions. See Sections 7-26-6 and 26-6.2 NMSA 1978 for further information
Uranium is 3 1/2% of taxable value.