New Mexico Gross Receipts Tax Calculator for Contractors
Estimate your New Mexico Gross Receipts Tax (GRT) liability as a contractor. Enter your gross receipts, select your county/municipality, and specify your contract type to calculate the applicable GRT.
Formula
Step 1 – Taxable Gross Receipts:
Taxable Gross Receipts = Gross Receipts − Allowable Deductions
Step 2 – GRT per Period:
GRT = Taxable Gross Receipts × (Combined GRT Rate ÷ 100)
Step 3 – Total GRT:
Total GRT = GRT per Period × Number of Reporting Periods
Combined GRT Rate = State Base Rate (5.125%) + County Rate + Municipal Rate
Example: Albuquerque contractor with $150,000 gross receipts, no deductions:
GRT = $150,000 × 7.875% = $11,812.50
Assumptions & References
- New Mexico imposes a Gross Receipts Tax (GRT) on the privilege of doing business in the state. Unlike a sales tax, GRT is levied on the seller (contractor), not the buyer, though it is commonly passed on.
- The state base rate is 5.125% (NMSA 1978, § 7-9-4). Local option rates (county + municipal) are added on top, resulting in combined rates ranging from ~5.125% to ~9%+.
- Rates used in this calculator reflect published New Mexico Taxation and Revenue Department (TRD) combined rates. Rates are subject to change — always verify current rates at tax.newmexico.gov.
- Government contracts: Under NMSA 1978, § 7-9-54, contractors may deduct the value of materials incorporated into a construction project for a governmental entity, reducing taxable receipts.
- Subcontractor deduction: Under NMSA 1978, § 7-9-52, receipts of a subcontractor from a licensed New Mexico contractor for construction services may be deductible to avoid double taxation.
- Contractors must report and remit GRT monthly or quarterly depending on their average monthly tax liability (NMSA 1978, § 7-1-13).
- This calculator provides estimates only and does not constitute tax advice. Consult a licensed New Mexico tax professional or the NM TRD for your specific situation.
- Reference: New Mexico Gross Receipts and Compensating Tax Act, NMSA 1978, §§ 7-9-1 through 7-9-114.