Get your tax IDs in New Mexico

An EIN, if you need one, comes from the IRS. New Mexico then uses a state tax number for gross receipts tax, compensating tax, and withholding. Hiring adds unemployment insurance with the Department of Workforce Solutions. Workers’ compensation is a separate insurance question on Stay compliant.

What’s different in New Mexico

• The tax on a sale is the gross receipts tax, and the business owes it. It is imposed on the business, and it is common for a business to pass it on to the customer². If you pass it on, the department’s rule says the bill has to show the tax as a separate amount or state that New Mexico tax is included in the amount billed⁹. The gross receipts overview mentions only the separate line.
• Services are in the tax, not only goods. Gross receipts include selling property in New Mexico, leasing or licensing property used here, granting a franchise right used here, and performing services, including some services performed outside New Mexico whose product is first used here².
• The rate is a map. The state piece is 4.875%³. Counties and cities add their own rates, so the total depends on the location. The department’s location code and rate map shows it.
• There is a state income tax. Personal rates run from 1.5% to 5.9%¹². Corporate income tax is 5.9%¹¹.
• The state number is a New Mexico Business Tax Identification Number (NMBTIN)¹⁰. FYI-102, the 2014 publication for new businesses that the gross receipts overview still links, calls it a CRS identification number.

Do this

1. Get an EIN from the IRS if you need one. It is free and, if approved, issued immediately¹ online. The Secretary of State does not issue it. Don’t pay a website to apply for you.
2. Register with the Taxation and Revenue Department if you are engaging in business here. The department’s registration page puts that on anyone who engages in business in New Mexico. Apply online at Taxpayer Access Point, or take ACD-31015 Business Tax Registration to a district tax office with an appointment. There is no fee to register. A mailed application is processed in the order received, and processing times may vary⁵.
3. Keep the registration certificate. It shows your NMBTIN and your filing frequency. The return instructions say the department cannot accept Form TRD-41413¹⁰ without a valid identification number.
4. Look up the rate for the place you report. The location is in general, the place where the goods or the product of the service are delivered. Professional services are an exception. FYI-200 says those receipts are reported where the service is performed. A professional service, other than an in-person or construction service, is one that requires an advanced degree the work actually needs, or a state license⁴. In-person services and construction services follow their own rules in that publication. The overview says rate changes are in July, except a special situation such as a natural disaster, which can let a county or municipality change a rate in January². FYI-105 says county rates can change in January and July, and municipal rates can change in January and, in some cases, July³.* Use the rate schedule for the period you are filing. The department posts it with the gross receipts location map.
5. File on the schedule the department assigns. Form TRD-41413 is due on or before the 25th of the month after the period ends. When that date falls on a weekend or a holiday, the deadline is the next business day. The instructions say the frequency is monthly, quarterly, or semiannually, as printed on the registration certificate. Under FYI-105, monthly filing is assigned at registration, and a business whose combined tax averages $500 a month or less can apply to file quarterly or semiannually³. The certificate is the schedule to follow. A return is still due when the tax is zero. The instructions impose $5 for failing to file even when no tax is due. A late return that owes tax draws 2% of the tax due, up to 20%. Electronic filing is required when average monthly gross receipts tax in the prior calendar year was $1,000 or more¹⁰.
6. Know which income tax return is yours. A corporation subject to corporate income tax files CIT-1, Corporate Income and Franchise Tax Return. The tax is 5.9%¹¹ of New Mexico taxable income for a year beginning on or after January 1, 2025. The tax falls on every domestic and foreign corporation employed or engaged in business in, into, or from New Mexico, or with income from property or employment here. That definition of “corporation” includes an LLC or partnership taxed as a corporation for federal income tax⁶. An LLC that has not made that federal election does not file CIT-1 because of the state filing alone. The owner’s personal return, or the entity’s information return, is a different form. Entity and tax election keeps those choices apart. This page does not choose one.
7. Register for unemployment when the work makes you an employer. Do it from the unemployment tax page. Registration is with the Department of Workforce Solutions, which then issues an Employer Account Number. You have to activate the account before the department will take wage reports. The 2026 taxable wage base is $34,800. The 2025 base on the same page was $33,200¹⁴. A new contributing employer’s rate is the greater of the industry average or 1%. It lasts until the employer has two years as an experience-rated employer. On the 2026 industry table, construction is 1.21%. Use the row for your own industry, then apply the greater-of rule. After the experience rating starts, the contribution rate is at least 0.33% and no more than 5.4%¹⁵. The rates page also describes an excess claims premium on top of it for an employer with high benefit charges. The hiring guide covers the federal side.

Gross receipts tax and income tax

From the gross receipts overview and FYI-105:

• The tax is imposed on the business, and it is common for a business to pass it on to the customer².
• A bill that passes the tax on has to show the tax as a separate amount or state that New Mexico tax is included in the amount billed⁹.
• State rate: 4.875%³, plus the county and city rates for the location.
• What is taxed includes selling property in New Mexico, leasing or licensing property used here, granting a franchise right used here, and performing services, including some services performed outside New Mexico whose product is first used here².
• For a seller with no physical presence, the threshold is at least $100,000 of taxable gross receipts in the previous calendar year, including a marketplace seller with no physical presence here².
• Compensating tax is the companion tax on the buyer, when gross receipts tax was not paid on property or services used here. FYI-105 says the buyer’s liability is met if the buyer paid a seller who collected it and the tax is stated separately on the invoice.

Corporate tax, from the overview and FYI-350:

• Income tax rate: 5.9%¹¹.
• Franchise tax: $50 a year, on every domestic and foreign corporation, including an S corporation, that engages in business here or exercises its corporate franchise, whether or not it is actively doing business⁶. It is due every time a corporate income and franchise tax return is due, including a short-year return, and still due for an inactive corporation that exercises its franchise¹¹.
• The income tax is due on or before the due date of the federal corporate return. A taxpayer who files and pays electronically has until the last day of the month in which the federal return is originally due¹¹.
• Estimated payments: quarterly, if the year's tax after credits is $5,000 or more. The dates are the 15th day of the fourth, sixth, ninth, and twelfth months of the tax year¹¹.
• A pass-through entity’s information return is due with its federal return. FYI-350 says the entity withholds 4.9% of each nonresident owner's share of net income when it files its information return¹¹.

Personal income tax, from the Income Tax Act as the department publishes it, uses the schedules for any taxable year beginning on or after January 1, 2025. The lowest rate in the joint schedule is 1.5%. The top of that schedule is 5.9%. For a single filer the top bracket is over $210,000, $9,748 plus 5.9% of the excess, for a single individual¹². The act prints separate schedules for joint returns, single filers, and married filing separately. Open that section before you use a bracket. The 2025 return instructions say the return was due April 15, 2026, for the 2025 return, both on paper and electronically. If April 15 falls on a weekend or a holiday, the return is due the next business day. A fiscal-year return is due the 15th day of the fourth month after a fiscal year ends¹³. Use the instructions for the year you are filing.

What you get back

An EIN if you applied, a state tax number on a registration certificate, and an Employer Account Number if Workforce Solutions registered you. Write down the gross receipts frequency on the certificate. The industry unemployment rate is the one on the notice, not a rate you pick from the table yourself.