New Mexico Sales Tax Nexus: Economic Nexus Threshold (2026)

What to do after crossing the New Mexico threshold

We did not find a specific start-date rule for New Mexico in the sources reviewed. Check the official guidance before you begin collecting.

1. Confirm the numbers. Check your New Mexico sales against the measure and period in the key facts above (taxable sales only).
2. Register before you collect. Use New Mexico's official registration page. Collecting a state's tax without a registration is generally not allowed.
3. Collect and file. Charge New Mexico sales tax (plus any local taxes that apply at the delivery address) on taxable sales from the start date, and file returns on the schedule the state assigns. Marketplaces generally collect on the sales they facilitate, so you usually collect on your direct sales.
4. Look back. If you crossed the threshold in an earlier period and did not register, get advice on those periods. Many states have voluntary disclosure programs that may limit penalties.

Physical presence and inventory in New Mexico

Physical presence creates nexus regardless of sales volume. TRD lists work physically done in NM by employees or independent contractors, leasing equipment in NM, and licensing intangible property used in NM. Inventory stored in NM (including FBA/3PL) generally creates physical nexus.

Marketplace sellers in New Mexico

Do marketplace sales count toward your own threshold? No, excluded.

The threshold counts only 'taxable gross receipts', which TRD defines as receipts that are not exempt or deductible (FYI-105). A marketplace seller may deduct receipts from sales facilitated by a marketplace provider that has paid or will pay the GRT (Section 7-9-117 NMSA; FYI-105 'Marketplace Seller Deduction', requires documentation from the provider). Those deductible receipts therefore do not count toward the seller's own $100,000 test. The deduction does not apply if the provider is found not to owe the tax because it relied on information the seller gave it. Marketplace providers without physical presence use the same $100,000 test and count the receipts they facilitate.

Other things to know about New Mexico

• The tax is a Gross Receipts Tax imposed on the seller, not a traditional sales tax. The combined rate runs from 4.875% to 10.8125% depending on location.
• Destination-based sourcing: businesses use the location code and rate for the place where the goods or the product of the service are delivered (professional services are an exception).
• Only taxable receipts (net of exemptions and deductions) count toward the $100,000 test, so sellers with mostly exempt or deductible NM receipts (e.g., NTTC-supported sales or marketplace-facilitated sales) may fall below it.
• Out-of-state businesses without NM physical presence report state-rate-only receipts under location code 88-888 (per FYI-105).