Step-by-step process for filing sales tax in New Mexico
Let’s get right into the steps for filing sales tax in New Mexico. Skip to step 2 if you already have an account with the New Mexico DOR.
Step 1: Create an online account
To begin filing your New Mexico gross receipts tax return, you'll need to register for a gross receipts tax permit and create an account on the New Mexico Taxation and Revenue Department's TAP (Taxpayer Access Point) website. The registration process can be completed entirely online, and you'll receive your login credentials upon completion.
To create your account, click the "Create a Logon" button and select "Business" as your account type.
You'll be prompted to fill out forms with information about your business, such as your Federal Identification Number (FEIN), social security number, individual taxpayer identification number (ITIN), or your CRS account number. Be sure to provide accurate and up-to-date information to ensure a smooth registration process.
Once you've completed all the necessary forms and clicked "Next" through each step, you'll receive your login credentials to access your account and begin filing your gross receipts tax returns.
Step 2: Login into your account
With your newly acquired login credentials, sign in to your TAP account using your User ID and password.
This will bring you to the homepage of your account, where you can manage various aspects of your business's tax filings and payments.
Step 3: Start your tax return
From your account homepage, locate the "File Return" button for the tax period you wish to file. In the provided example, you would click on the button near the date 09/27/2026.
To proceed with filing, you must enter your Federal Identification Number (FEIN), social security number, individual taxpayer identification number (ITIN), or CRS account number.
After filling out the required information, click "Next" to continue.
Step 4: Enter tax details
After clicking "Next," you'll be directed to a new page where you'll need to click "Next" again, which you'll find at the bottom right corner.
The second page is designed to verify that all information regarding your organization's registration is correct. Before proceeding, take a moment to carefully review and confirm that all details are accurate. If you need to make any changes to your address, you can do so by clicking on the provided hyperlink.
Advanced users can upload a spreadsheet using the provided template by clicking "Import Return." However, for this demonstration, we will focus on filing a return using the options provided within the TAP system.
The first question you'll encounter asks whether you have a gross receipts tax report. If you do not have a report to submit, select "No" and continue. We assume we have a report in this example, so we'll choose "Yes." Next, you'll be asked if you have any deductions to report. If you select "Yes," deductions will be available on the gross receipts location detail table.
To add a location for your gross receipts tax, click the "Add Location" button and fill out the address information.
Once you've added the address, click "Next" to proceed. On the following page, you'll have the option to add any business credits.
For this example, we will choose "No" and click "Next." You'll now see a summary page displaying your completed return. Take a moment to review the information and verify that everything is correct.
At the bottom of the page, you'll find a signature field.
You must click this field to confirm that you have verified the accuracy of the information provided before submitting the return.
Once you've clicked the signature box, click "Submit" to file your return. A confirmation message will appear; click "OK" to proceed.
After submitting your return, scroll down to the bottom of the page and click "Make a Payment" to proceed to the payment step.
Step 5: Submit payment
Now that you've successfully filed your sales tax return, it's time to pay. To get started, click the "Make an e-payment" button at the bottom of the screen. You'll be presented with two payment options: credit card or e-check. Please note that if you choose to pay by credit card, an additional 2.4% fee will be assessed. E-check payments, on the other hand, are free.
In this example, we will demonstrate how to make a sales tax payment using an e-check. To complete the payment process, fill out your banking information and select the date you wish to process the payment. It's important to schedule your payment on or before the due date of the return to avoid incurring late fees.
If you've previously entered your bank information, it should appear as a selectable option. Once you've confirmed all the information, click "Continue" to finalize your return and payment submission.
Step 6: Finalize filing
Congratulations on successfully filing your New Mexico gross receipts tax return and submitting your payment! If you forgot to print or save a copy of your return for your records, don't worry – you can still access it.
Log back into your TAP account and choose "Select Sales and Use Tax." On the bottom left-hand side of the page, you'll see an option to "View, Print, and Save Filed Returns." Click this button to access your previously filed returns and save or print a copy for your records.
Local sales tax in New Mexico
Notably, gross receipts tax rates can vary significantly across different cities and municipalities in New Mexico. Here are the current gross receipts tax rates for some of the state's major cities:
Be sure to check the specific tax rate for your business location to ensure accurate calculation and reporting of your gross receipts tax liability.
Filing Sales Tax in New Mexico FAQs
What is the frequency of gross receipts tax filing in New Mexico?
The frequency of your gross receipts tax filing in New Mexico will depend on your sales volume. The New Mexico Taxation and Revenue Department will assign your filing frequency based on your gross receipts tax liability, which may require you to file monthly, quarterly, or annually.
Can I file my New Mexico gross receipts tax return by mail?
Yes, you have the option to file your New Mexico gross receipts tax return by mail using the paper forms provided by the Taxation and Revenue Department. However, the department encourages electronic filing through the TAP system for faster processing and convenience.
What happens if I miss the gross receipts tax filing deadline in New Mexico?
If you fail to file your gross receipts tax return by the deadline, you may be subject to penalties and interest on the unpaid tax amount. Filing and paying your gross receipts tax on time is essential to avoid these additional charges.
Do I need to file a gross receipts tax return in New Mexico if I didn't make any sales?
Yes, even if you had no sales or owe no tax for a particular reporting period, you are still required to file a return if you have an active gross receipts tax permit in New Mexico. In this case, you would file what is known as a "zero return."
Is SaaS Taxable in New Mexico?
Yes, SaaS is taxable in New Mexico.
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