New Mexico Gross Receipts Tax for Out-of-State and Online Sellers: The $100,000 Threshold
New Mexico Gross Receipts Tax for Out-of-State and Online Sellers: The $100,000 Threshold
If you sell into New Mexico from another state, you have probably searched for a New Mexico online sales tax rule. The short answer: New Mexico has no sales tax. It has a gross receipts tax (GRT) imposed on the seller. A seller with no physical presence in the state, including a marketplace provider, becomes subject to it once its New Mexico sales reach $100,000 in the previous calendar year. That rule is the state's economic nexus test. This guide covers how the threshold works, what counts toward it, how to register and file, and which other New Mexico registrations are separate from it.
Informational content only, not legal or tax advice. This guide explains general New Mexico rules as of October 2026. Your obligations depend on your specific facts, and rates and agency procedures can change. For multi-state sales, marketplace sales, or a business with inventory or staff in New Mexico, talk with a CPA or attorney who works with New Mexico gross receipts tax before you act.
New Mexico Has No Sales Tax, but It Taxes the Seller
New Mexico does not charge a sales tax to the buyer at checkout. Instead, the gross receipts tax is imposed on the seller's gross receipts. The state rate is 4.875%. Local governments add their own rates, so combined state and local rates run from 5.25% to 9.4375% for the schedule in effect from July 1, 2026 to June 30, 2027. Combined rates change only in July, when the new schedule takes effect.
This is why an out-of-state seller can owe New Mexico tax with no office, warehouse, or employee in the state. The tax follows the sale, not the seller's address. Because the combined rate depends on where the buyer receives the goods, you need to know the destination location code and the rate that applies to it for every New Mexico sale.
The $100,000 Economic Nexus Threshold
Under NMSA 7-9-3.3, in effect since July 1, 2019, a seller with no physical presence in New Mexico is engaging in business in the state once its taxable gross receipts sourced to New Mexico in the previous calendar year reach $100,000. A marketplace provider with no physical presence is covered by the same test. Engaging in business is the point at which New Mexico expects you to be registered and reporting gross receipts tax.
Two features of the rule trip up sellers:
- It looks back one year. Your status is measured against the prior calendar year's New Mexico-sourced receipts, not the year you are in.
- It counts dollars, not orders. Ten large orders and 1,000 small orders count the same if the receipts total the same amount.
Example: a seller in Colorado with no New Mexico location ships $104,000 of physical goods in calendar 2025 to buyers with New Mexico delivery addresses. The seller has passed the $100,000 threshold, so the 2025 total determines the seller's New Mexico status for the following year. Confirm with TRD when registration and the first return are due after you cross the line, because the timing depends on your facts.
What Counts Toward the $100,000
The threshold adds up several kinds of gross receipts. The categories that count are:
- Sales of tangible property delivered to New Mexico buyers
- Leases and licenses of tangible property
- Sales of licenses and services
Add all of these together for the prior calendar year. Receipts that are not sourced to New Mexico do not count toward the threshold. If you sell a product or service type you are unsure about, ask TRD or your CPA how it is treated before assuming it falls outside the count, because a missed category can understate your total.
How New Mexico Sources a Sale
Sourcing decides which state a sale belongs to. Under NMSA 7-1-14, a sale is sourced to New Mexico where the buyer receives the product, which for shipped goods is generally the delivery address. A sale shipped to an Albuquerque address counts as a New Mexico sale even if your warehouse is in Texas. A sale shipped to an address in Arizona does not count, even if the buyer lives in New Mexico.
Keep the ship-to address for every order. Your platform's order records are usually the evidence you will need if TRD asks how you arrived at your total.
Register With TRD for a Free Business Tax Identification Number
Once you are engaging in business in New Mexico, register with the Taxation and Revenue Department (TRD). Registration is free. You register through the Taxpayer Access Point (TAP), reached from the TRD website at https://www.tax.newmexico.gov/. The result is a Business Tax Identification Number (BTIN), which replaces the older CRS identifier.
The BTIN is a tax registration, not a business license. Having one does not authorize you to do business in any particular activity, and it does not satisfy any city or county registration. TRD's guidance on who must register is at https://www.tax.newmexico.gov/businesses/who-must-register-a-business/.
Filing the Gross Receipts Tax Return
New Mexico reports gross receipts tax on Form TRD-41413. The return is due on the 25th day after the end of the reporting period. TRD assigns your filing frequency as monthly, quarterly, or semiannual, so you do not choose it yourself. If TRD assigns monthly filing, your March sales are reported on the return due April 25.
Report each sale under its destination location code and the rate that applies there. Do not lump all New Mexico sales together at one rate. Set up your sales records by location code from the first sale, because rebuilding that detail from order exports later is slow and error-prone. Use TRD's rate and location tools to confirm the current combined rate for any location you are unsure about, since the schedule changes each July.
Foreign LLC Registration Is a Separate Filing
If your LLC was formed in another state and you want to transact business in New Mexico, you register it as a foreign LLC with the New Mexico Secretary of State. The filing fee is $100, and you file through the SOS Enterprise Business Filing System at https://enterprise.sos.nm.gov/.
The foreign LLC filing and the GRT registration are separate. A BTIN does not register your LLC with the Secretary of State, and an SOS filing does not register you for gross receipts tax. Whether selling online into New Mexico, without any other activity in the state, requires the SOS filing is a question to confirm with the Secretary of State or an attorney. Do not assume the answer from the GRT threshold alone.
Other New Mexico Items to Check
- No statewide business license. New Mexico issues no general statewide business license. The state's business navigator lists three universal steps: register the entity with the Secretary of State, obtain free tax IDs from TRD, and obtain any activity-specific licenses from the Regulation and Licensing Department. Cities and counties may require their own registration. Some charge a flat annual fee, so confirm the amount and rules with the city or county where you are located or have customers.
- No statewide DBA. New Mexico has no general assumed-name registration for sole proprietors, partnerships, LLCs, or corporations. An LLC that will trade under a different name states that name in its Articles of Organization.
- LLCs. Articles of Organization cost $50. An LLC files no annual or biennial report with the Secretary of State. An LLC taxed as a default pass-through does not owe the $50 annual corporate franchise tax.
- Corporations. Articles of Incorporation cost $100. The first corporate report is due within 30 days after the certificate of incorporation is issued, then biennially at $25 per report. Corporations also file form CIT-1 and owe the $50 annual corporate franchise tax, plus the 5.9% corporate income tax on taxable income for taxable years beginning on or after January 1, 2025.
Key Figures at a Glance
| Item | Figure or Rule | Where to Confirm |
|---|---|---|
| State gross receipts tax rate | 4.875% | TRD, https://www.tax.newmexico.gov/ |
| Combined rates, July 1, 2026 to June 30, 2027 | 5.25% to 9.4375%, changes only in July | TRD rate tables |
| Economic nexus threshold | $100,000 in prior calendar year New Mexico-sourced receipts | NMSA 7-9-3.3 |
| Business Tax Identification Number | Free | TAP through TRD |
| GRT return | Form TRD-41413, due the 25th after each period | TRD |
| Foreign LLC registration | $100 | SOS Enterprise |
| LLC Articles of Organization | $50, no annual or biennial report | SOS Enterprise |
Your Next Steps
- Total your prior calendar year's sales to New Mexico delivery addresses, including marketplace and platform sales.
- Compare the total with $100,000, counting sales of tangible property, leases and licenses of tangible property, and sales of licenses and services.
- If you have crossed the threshold, register with TRD through TAP for a free BTIN, then confirm with TRD when your registration and first return are due.
- Set up your sales records by destination location code and the rate that applies to each location.
- Calendar the 25th after each reporting period, using the frequency TRD assigns.
- Decide whether a foreign LLC filing with the Secretary of State applies to you, and budget the $100 fee if it does.
- Check whether your city or county requires its own registration, and confirm any annual fee with that local government.
When to Get Professional Help
The threshold itself is simple to state, but the answers that matter depend on your products, your marketplace arrangements, and where your buyers receive their orders. Sellers with multiple sales channels, inventory or staff in New Mexico, or questions about pricing the tax at checkout should consult a CPA familiar with New Mexico gross receipts tax. An attorney can advise on foreign LLC registration and entity questions. Use the official TRD and Secretary of State pages above to confirm every figure in this guide before you file.