Find Local New Mexico Tax Relief Experts

New Mexico has a graduated individual income tax from 1.7% to 5.9%, with the top rate applying to income above $210,000 for married joint filers. New Mexico's gross receipts tax (GRT) functions similarly to a sales tax but applies to the seller's gross receipts from selling goods and most services; the base rate is 5%, and local municipalities add rates from 0.125% to 3.5625%, creating significant variation across the state. Businesses must track GRT rates by location for each transaction, and New Mexico's destination-based sourcing rules mean that online sellers must apply the GRT rate of the buyer's location, not the seller's. Corporate income tax in New Mexico ranges from 4.8% to 5.9% on New Mexico net income; the state imposes a franchise tax of $50 per year as a minimum corporate obligation. Payroll taxes require New Mexico employers to withhold state income tax and file CRS returns quarterly; employers who fall behind on payroll tax withholding face trust fund penalties assessed personally against responsible parties. Back tax debt in New Mexico accumulates at the federal short-term rate plus 5% annually; the Taxation and Revenue Department can garnish wages, place liens on real and personal property, and revoke business licenses. Oil and gas producers, construction companies working on tribal lands, and small businesses serving multiple jurisdictions are among the most common sources of New Mexico back tax cases. New Mexico offers installment agreements and has a voluntary disclosure program that can reduce or waive penalties for businesses that self-report prior-period liabilities.