Gross Receipts Tax Overview
Gross receipts tax (GRT) is imposed on businesses, but it is common for a business to pass the GRT on to the purchaser. If GRT is passed on to the customer, it is required to be separately stated on the invoice.
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 performing services outside of New Mexico, the product of which is initially used in New Mexico
- Selling research and development services performed outside New Mexico, the product of which is initially used in New Mexico.
Businesses that do not have a physical presence in New Mexico, including marketplace providers and sellers, also are subject to GRT if they have at least $100,000 of taxable gross receipts in the previous calendar year. More information on determining whether you are a marketplace provider or seller required to file and pay GRT is in FYI-206: Gross Receipts Tax and Marketplace Sales
If you are a new business, it is important to review FYI-102: Information for New Businesses.
FYI-105 provides a complete description of the gross receipts tax and the different exemptions and deductions that are available, see FYI-105: Gross Receipts and Compensating Taxes: An Overview.
Forms and Instructions
The paper form and instructions to report gross receipts taxes are located at the bottom of this page. These documents contain a lot of useful information. We do however recommend that you file electronically using our Taxpayer Access Point (TAP) whenever possible, https://tap.state.nm.us/TAP/.
If you would like to review historical information, see the GRT Filer’s Kits located at the bottom of this page.
Determining location code and tax rate
GRT rate varies throughout the state because the total rate combines the rates imposed by the state, counties, and municipality for each location. For more information on current and prior rates view the Gross Receipts Location Code and Tax Rate Map. The Department posts new tax rate schedules online and in the GRT Filer’s Kit, which can be found at the bottom of this page.
In general, businesses will use the location code and tax rate corresponding to the location where their goods or the product of their service are delivered. There are exceptions to this general rule, such as performing professional services. Please see FYI 200: Gross Receipts Reporting Location and the Appropriate Tax Rate for more information on choosing the correct location and tax rate for your gross receipts.
Prior to July 1, 2025, changes to the tax rates were possible twice a year in January or July. Starting July 1, 2025, rates will only change in July, unless there is a special situation such as a natural disaster where a county or municipality is able to change their rate in January.
FREQUENTLY ASKED QUESTIONS ABOUT
GROSS RECEIPTS TAX
Below are some of the frequently asked questions, and responses from the New Mexico Taxation and Revenue Department regarding gross receipts tax.
To further assist you with your questions, we have a lot of resources available on our Forms & Publications webpage in the “Publications” folder. You can also review the gross receipts tax return and instructions located on the bottom of this webpage.
Do all deductions require a non-taxable transaction certificate NTTC?
No, not all deductions require or have a non-taxable transaction certificate (NTTC) associated with them. For more information on non-taxable transaction certificates see our website Non-Taxable Transaction Certificates (NTTC).
I am new to GRT, I think I filed some prior returns incorrectly and I owe more taxes than I thought. What should I do?
If you owe more taxes or want to be certain you understand your tax liability going forward, a managed audit may be an option for you. For more information on a managed audit see our website Request a Managed Audit.
If your GRT return was filed and you discover that the information was incorrect, you will need to file an amended return and the additional tax will need to be paid.
If you are due a refund, you will need to also request a refund. See the GRT form and instructions for more information.
I am planning to go to an event in New Mexico and be a vendor at a special event. Do I owe GRT?
If you are selling item or services in New Mexico, GRT is due unless an exemption or deduction applies to your sale. For more information see our website Special Event and Vendors.
Are there any deductions for business expenses?
No, there are not any deductions for business expenses. See the form instructions for more information on available deductions and exemptions from GRT.