Taxation in New Mexico

Updated on Tuesday 13th November 2018

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Starting a business in USA and especially in New Mexico is subject to particular taxes, like the corporate income tax and the franchise tax, which applies to C or S corporations. A series of marginal tax rates represent the corporate income tax in New Mexico imposed for companies with establishments in this state. Our specialists in company formation in USA can offer information about the taxes you need to pay in USA if you decide for business and they can provide essential support at the time of company registration in USA.

What is the sales tax rate in New Mexico?

The standard sales tax in New Mexico is set at a rate of 5.125% for goods and services sold in this state. New Mexico municipalities can collect their own sales tax named the city sales tax which cannot exceed 8.93%.

What is the corporate income tax rate in New Mexico?

The corporate income tax in New Mexico has suffered a series of changes in recent years and the following table shows how companies are levied with this tax in 2018:
Taxable Income Tax Rate
Between 0$ and $500,000  4.8%
For more than $500,000  5.9% and $24,000

Paying the tax on the company’s gross receipts instead of income means that firms must own real estate properties in New Mexico, develop only sale activities and have an annual gross sales in New Mexico of no more than $100,000. Companies meeting these requirements are subject to the alternative tax of 0.75% of annual gross receipts from New Mexico.

We invite you to talk to our company formation agents in USA and find out more about the taxes you need to pay in New Mexico. Moreover, you may read the general guide to company incorporation in New Mexico directed to foreign entrepreneurs willing to open a company in USA and particularly in this state.

What is the franchise tax in New Mexico?

Corporations in New Mexico need to pay the franchise tax of $50 only once per year. This is a flat fee paid by S corporations in New Mexico.

Capital gains in New Mexico

The incomes derived from capital gains in New Mexico are taxable as personal incomes and taxpayers in this state have the right to claim deductions. This means that a deduction of 50% of the total income derived from capital gains is applicable. However, a deduction of $1,000 of the net capital gains registered in New Mexico might be applicable.

We invite you to address and contact our company incorporation representatives in USA and solicit assistance for company formation in USA and information about the taxation system in New Mexico.