The three basic business taxes in New Mexico include gross receipts, compensating, and wage withholding.



Gross receipts are the total amount of money received from:


  • Selling, leasing, or licensing New Mexico property;
  • Granting a right to use a franchise in New Mexico;
  • Performing services in New Mexico; and
  • Selling research and development services performed outside New Mexico in which the product is initially used in New Mexico.


Select the GROSS RECEIPTS TAX OVERVIEW link and the FYI-105 PUBLICATION link for additional information provided by the New Mexico Taxation and Revenue Department. The gross receipts tax rate varies throughout the state from 5% to 9% and frequently changes. Select the GROSS RECEIPTS TAX RATES link for additional tax rate information and schedules.



Compensating tax is an excise tax imposed on persons using property or services in New Mexico, also called “use tax” or “buyer pays.” Compensating tax is reported on the Combined Reporting System, CRS-1 form. The tax is due on or before the 25th day of the month following the report period in which the taxable transaction occurs. Select the COMPENSATING TAX link for additional information.



Employers must withhold a part of their employees’ wages for payment of income tax. State withholding tax is similar to federal withholding tax. An employer who withholds a portion of an employee's wages for payment of federal income tax must withhold state income tax. Select the WAGE WITHHOLDING TAX link and the FYI-104 PUBLICATION link for additional information.


To pay your taxes online, select the TAP LOGIN link. You will need to create a user name and password when you first access the system. To access videos that walk you through the process of setting up a login and password and making a payment, on the TAP HOME page select the How-To Videos link in the upper right corner. After you have established a login account, you are able to save your progress for 24 hours. However, the site will time you out after 30 minutes of inactivity.