Key figures
New Mexico receivables
2026, with sources
A tax on gross receipts, not sales
New Mexico replaced a sales tax with the gross receipts tax: a tax on the seller, measured by gross receipts from selling property, performing services and licensing property in New Mexico. Because it reaches services, it reaches most of what a software company sells. The state rate is 4.875%; counties and municipalities add their own, so totals run from 4.875% to more than 9%. Because the tax is on the seller, a business that does not separately state GRT on the invoice still owes it on the full receipt.
A seller without physical presence is engaged in business in New Mexico once its taxable gross receipts reach $100,000 in the previous calendar year, counting services and licenses, not only goods.
Destination sourcing
GRT is sourced to where the goods or the product of the service are delivered, so the rate on an invoice depends on the customer’s location code. The main exceptions: professional services — those that need a New Mexico license or an advanced degree to perform — are sourced to the location of the seller, and construction and real-property services to where the property is. TRD publishes a new Gross Receipts and Compensating Tax Rate Schedule effective January 1 and July 1 as local option rates change, so the rate table needs updating twice a year.
Deductions and certificates
Sales for resale and certain other sales are deductible, many only with a nontaxable transaction certificate (NTTC) from the buyer on file. Returns are due on the 25th of the month after the period, monthly, quarterly or semiannually as TRD assigns. Customer credits left untouched become unclaimed property, reported to TRD by November 1.
Deadlines
- 25th of the month after the periodGross receipts tax returnTRD-41413
The federal baseline
This page covers what New Mexico adds. The federal rules underneath it apply here too.
Common questions
Is GRT the same as sales tax?
Not quite. Gross receipts tax is imposed on the seller for the privilege of doing business, and it covers services and licenses, not just goods. Sellers almost always pass it on, but the liability stays with them if they don’t.
Is SaaS taxable in New Mexico?
Yes. Receipts from licensing software used in New Mexico are gross receipts, and services performed outside New Mexico whose product is first used here are taxable too. A remote SaaS company owes GRT once its taxable New Mexico receipts reach $100,000 in a calendar year.
Receivables next door
- AZArizona receivablesArizona’s TPT is a tax on the seller, at 5.6% plus city rates. SaaS is taxable as a personal property rental, but the $100,000 economic threshold counts only retail sales.
- UTUtah receivablesUtah taxes SaaS as prewritten software used in Utah, at 4.85% plus local rates. Remote sellers register at $100,000 of Utah revenue; the transaction count is gone.
- COColorado receivablesA 2.9% state sales tax, a $100,000 nexus threshold, and home-rule cities that write their own rules. The state doesn’t tax SaaS; Denver and some other cities do.
- OKOklahoma receivablesOklahoma’s nexus threshold counts only taxable sales — $100,000 — and SaaS is generally not taxable. The state rate is 4.5% plus county and city tax.
- TXTexas receivablesTexas taxes SaaS as a data processing service on 80% of the charge, at 6.25% plus up to 2% local. Remote sellers register at $500,000 of Texas revenue.
Founder guides on this
- Sales taxSales tax nexus for startups: when you owe tax in a stateSince Wayfair, selling into a state can create a sales tax obligation. How economic nexus works, why SaaS is taxable in some states and when to register.
- RevenueDeferred revenue for SaaS startups, explainedAn annual prepayment is cash today and revenue over a year. How deferred revenue works under ASC 606, why it’s a liability, and the schedule behind it.
- StripeHow to reconcile Stripe payouts to your booksA Stripe payout is charges less fees, refunds and disputes, batched across days. How to book it gross, tie it to the bank, and keep revenue right.
More of the New Mexico guide
- AccountingAccounting and state tax in New MexicoCorporate tax, conformity to federal rules, apportionment and what it does to your books
- PayablesPayables and contractors in New MexicoPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- PayrollPayroll taxes and employer rules in New MexicoWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in New MexicoRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in New MexicoCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.