NM
New Mexico Small Business Tax Guide
How New Mexico's gross receipts tax, business registration, corporate return and estimated payments work, quoted from the Taxation and Revenue Department with the date checked.
Disclaimer: This page is educational content only. Tax laws change, and your situation may differ. It is not legal, tax, or financial advice. Consult a qualified professional licensed in New Mexico before making filing or planning decisions.
Tax landscape for small businesses
Here is how the New Mexico Taxation and Revenue Department (New Mexico, checked October 31, 2026) explains GRT: "Gross receipts tax (GRT) is imposed on businesses, but it is common for a business to pass the GRT on to the purchaser." If you pass it on, the invoice has to show it: "If GRT is passed on to the customer, it is required to be separately stated on the invoice." Registration comes first: "Anyone who engages in business in New Mexico must register with the Taxation and Revenue Department."
There's no single rate to quote. The Department (checked October 31, 2026) says: "GRT rate varies throughout the state because the total rate combines the rates imposed by the state, counties, and municipality for each location." and "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." Rate changes now follow a calendar: "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." This page doesn't quote the state GRT rate or New Mexico's income tax rates; the Department's rate map and rate tables give them.
Worked example (sample figures, not tax advice): a sole proprietor expects $4,800.00 of New Mexico income tax for the year. The Department's estimated payments page (checked October 31, 2026) says: "There are two ways to calculate the required annual payment." One is "90% of the tax on the current year’s return", so $4,800.00 × 90% = $4,320.00.
Tax overview
Each row lists a tax area and its notes. Confirm current figures with your state's tax agency or the IRS.
| Tax type | Rate or basis | Notes |
|---|---|---|
| Gross receipts tax (GRT) | The total rate "combines the rates imposed by the state, counties, and municipality for each location" (the New Mexico Taxation and Revenue Department (New Mexico, checked October 31, 2026)) | "If GRT is passed on to the customer, it is required to be separately stated on the invoice." On exemptions, the Department's gross receipts overview (New Mexico, checked October 31, 2026) says GRT "is due unless an exemption or deduction applies to your sale", and that "not all deductions require or have a non-taxable transaction certificate (NTTC) associated with them." |
| GRT for out-of-state sellers | Applies at "$100,000 of taxable gross receipts in the previous calendar year" (New Mexico Taxation and Revenue Department, New Mexico, checked October 31, 2026) | For "Businesses that do not have a physical presence in New Mexico, including marketplace providers and sellers". |
| Corporate income and franchise tax | "you must annually file Form CIT-1" (New Mexico Taxation and Revenue Department, New Mexico, checked October 31, 2026) | "The return is due on the 15th day of the fourth month following the close of the tax year." |
Filing requirements
This list isn't a complete checklist for your business.
Register before doing business
The New Mexico Taxation and Revenue Department (New Mexico, checked October 31, 2026) says: "Anyone who engages in business in New Mexico must register with the Taxation and Revenue Department."
Corporate income and franchise tax return
The Department (New Mexico, checked October 31, 2026) says: "If you are a business, you must annually file Form CIT-1, New Mexico Corporate Income and Franchise Tax Return." It adds: "The return is due on the 15th day of the fourth month following the close of the tax year."
Estimated payments
The Department's estimated payments page (New Mexico, checked October 31, 2026) says: "For calendar-year filers who owe estimated tax payments, estimated tax payments are due by April 15, June 15, and September 15 of the tax year, and by January 15 of the following year."
Deductions and write-offs
Confirm with your state how it treats each item.
- Self-employment tax deduction (IRS, In the US (federal), last reviewed or updated October 30, 2026): "You can deduct the employer-equivalent portion of your self-employment tax in figuring your adjusted gross income."
- Health insurance for the self-employed (same IRS page): "Under Section 2042 of the Small Business Jobs Act, a deduction, for income tax purposes, is allowed to self-employed individuals for the cost of health insurance."
- This page leaves New Mexico's treatment of these federal deductions to a tax professional or the Taxation and Revenue Department.
Practical tips
- Put GRT on its own line whenever you pass it to the customer; the Department (New Mexico, checked October 31, 2026) says: "If GRT is passed on to the customer, it is required to be separately stated on the invoice."
- Use the rate for where the goods or the result of your service end up, as the Department (New Mexico, checked October 31, 2026) describes: "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."
- Recheck your GRT rate each July; the Department (New Mexico, checked October 31, 2026) says: "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."
- Invoice on the spot. Billed's mobile app page says: "Add line items, your logo, and tax, then send by email or share a link before you leave the site."
Frequently asked questions
Explore More State Tax Guides
Start Invoicing With Billed
Create invoices, track payments and keep your clients' details in one place with Billed.
At a glance
| Topic | Source wording |
|---|---|
| GRT on the invoice | "required to be separately stated on the invoice" (New Mexico Taxation and Revenue Department, checked October 31, 2026) |
| GRT for remote sellers | "$100,000 of taxable gross receipts in the previous calendar year" (New Mexico Taxation and Revenue Department, checked October 31, 2026) |
| Corporate return | "Form CIT-1" (New Mexico Taxation and Revenue Department, checked October 31, 2026) |
| Federal self-employment tax | "The self-employment tax rate is 15.3%." (IRS, In the US (federal), last reviewed or updated October 30, 2026) |
When this isn't for you
This guide covers New Mexico's gross receipts tax, registration, the corporate return and estimated payments for small firms. Tax credits, property tax, tribal and special district rules and multi-state questions sit outside it, and it isn't tax advice; check with the Taxation and Revenue Department or a tax professional.