File and Pay Taxes

To keep a business in good financial standing, a business owner must file and pay federal, state, and local taxes. This resource connects you to information and sites to pay taxes.

For general information from the New Mexico Small Business Development Center on the different types of business taxes, click on Taxes Under Various Forms Of Business.

You must file a federal income tax return if required to pay federal taxes on your business income. Federal tax law is highly complex; business owners are encouraged to seek the advice of a tax professional.

Below is useful information regarding federal taxes:

• IRS Small Business and Self- Employed Tax Center
• Determine Your Federal Tax Obligation
• US Treasury’s Electronic Federal Tax Payment System

You must file a state income tax return and, if required, pay state taxes on your business income. New Mexico businesses are liable for various state taxes and fees that are remitted to the New Mexico Taxation & Revenue Department. 

The Taxation & Revenue Department’s YouTube channel offers videos that answer many common questions, including:

• How to File a Gross Receipts Tax Return
• Applying for a Business Tax Identification Number (BTIN)
• Workshop for New Businesses
• How to Receive a New Mexico Resident Preference Certification

Taxpayer Access Point (TAP)

New Mexico taxpayers can use the free and secure Taxpayer Access Point (TAP) to file and pay State taxes, check the status of their returns, enter payment plans, and use many other convenient tools.  A video tutorial on TAP is available.

To file and pay your state taxes online, you will need to create a username and password when you first access the TAP system.

The Taxation & Revenue Department website’s Businesses page provides information on state business taxes. Information is provided on how to file and pay business taxes, claim business tax credits, update taxpayer contact information, and close or sell a business.

Click on the link All New Mexico Taxes  for detailed information on each specific tax.  Select the Frequently Asked Questions link for common state tax questions.

State tax law is complicated. Business owners are encouraged to seek the advice of a tax professional.

For more information on online services available through the New Mexico Taxation & Revenue Department, please go to https://www.tax.newmexico.gov/online-services/ .

The primary business taxes in New Mexico are gross receipts tax and wage withholding tax.

Gross Receipts Tax

Gross receipts are defined in Section 7-9-3.5 NMSA 1978 to include the total amount of money or value of 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; Selling services in New Mexico or selling services performed outside New Mexico, the product of which is initially used in New Mexico.

On the gross receipts tax return, taxpayers must correctly source their business receipts to various locations throughout New Mexico pursuant to Section 7-1-14 NMSA 1978.  The sourcing of gross receipts is generally based on where goods are delivered or where the product of services is initially used. Exceptions exist for “professional services.”  For more information view the YouTube content on Reporting Locations and Claiming Deductions for Gross Receipts Tax.

The gross receipts tax rate varies throughout New Mexico as a result of varying local rates.  Rates change periodically and can be found at the Gross Receipts Tax Rates page.

Gross receipts tax is due on or before the 25^th day of the month following the reporting period in which the taxable transaction occurs.  However, a business with very low average receipts may be eligible to file less frequently.

Wage Withholding Tax
Employers must withhold a part of their employees’ wages for payment of the employee’s personal 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.

Unemployment Insurance Tax Information
Unemployment Insurance Taxes are collected by the New Mexico Department of Workforce Solutions. More information can be located at https://www.dws.state.nm.us/UI-Tax-Information

Other Business Taxes
New Mexico has several other business taxes that apply in certain circumstances, including the compensating tax, cannabis excise tax, insurance premium tax, pass-through entity tax, corporate income tax, and severance taxes on the extraction of natural resources. F or information on other businesses taxes go to https://www.tax.newmexico.gov/businesses/other-all-nm-taxes/ .

In addition to federal and state taxes, businesses may also be liable for local taxes. For more information on local taxes or fees check with the county or city that your business is located in. Note, local governments impose gross receipts tax increments that are remitted to the State Taxation & Revenue Department. Businesses do not file gross receipts taxes separately with local governments.

Lodgers’ Tax
If you own a business that provides lodging, you may owe lodgers’ tax to your county and municipality. If so, you’ll collect lodgers’ tax from persons using your commercial lodging accommodations. Often the lodger’s tax must be reported and paid monthly.  Typically, lodgers’ tax is collected by county treasurers and city clerks.

To determine the practice of your municipality and county, look up your business’s municipality/county and “Lodgers’ Tax” on the internet, and follow the instructions provided. You may need to telephone the local offices to learn what is required for Lodgers’ Tax.

Property Tax
If you or your business own real property, you will owe pay property tax. You will receive a notice of valuation from your county assessor each year, followed by a property tax bill in the mail from your county treasurer. Property taxes are collected county treasurers.

In some counties, property tax can be paid online. In most counties, you will submit your payment by mailing it or by bringing the payment to your county treasurer’s office. To determine whether you can pay your property tax online, look up your business’s county and “property tax,” on the internet and check the county website. You may need to telephone the county treasurer to learn what is required for property tax.