New Mexico Contractor Sales Tax 2026
New Mexico sales tax for contractors 2026. Labor taxable? Materials? Real rules from state revenue department.
New Mexico sales tax rate for contractors
- Combined rate: 5.125% + local (~7.8% Gross Receipts Tax)
- Construction labor taxable: YES - labor is taxable
- Tax authority: New Mexico Taxation and Revenue Department
How New Mexico treats contractor labor
New Mexico GROSS RECEIPTS TAX applies to all business income, INCLUDING contractor labor. Contractor passes through to customer.
New Mexico-specific rules
New Mexico has GROSS RECEIPTS TAX, not sales tax. Applies to all business gross receipts including labor. Deduction available for resale.
New Mexico mechanics lien rights
Beyond sales tax, New Mexico contractor billing must respect the mechanics lien deadline of 120 days from completion. Preliminary notice: Not required separately.
New Mexico contractor licensing
New Mexico Construction Industries Division (CID) - required for licensed work. $30 + exam + bond ($5K-$25K). Board: https://www.rld.nm.gov.
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