New Mexico Resale Certificate Guide 2026: How to Get Yours

New Mexico does not have a traditional sales tax. Instead, the state imposes a gross receipts tax (GRT) on the seller, not the buyer. This distinction matters because the tax is on the privilege of doing business in New Mexico, not on the purchase itself. The state GRT rate is 5.125%, with local jurisdictions adding their own rates to bring the combined total up to approximately 9% in some areas. If you buy goods for resale in New Mexico, you need a Nontaxable Transaction Certificate (NTTC), specifically a Type 2, to document the transaction. This guide covers everything you need for 2026.

New Mexico Gross Receipts Tax Basics

Understanding Gross Receipts Tax vs. Sales Tax

This is the most important distinction for businesses operating in New Mexico. The gross receipts tax (GRT) is levied on the seller, not the buyer. In a traditional sales tax state, the seller collects tax from the buyer and remits it to the state. In New Mexico, the seller owes the tax on their gross receipts. In practice, most sellers pass the GRT cost to buyers as a separate line item, but they are not legally required to do so.

This seller-based system also means that the tax rate depends on where the seller is located, not where the buyer is. This is the opposite of most sales tax states, which apply rates based on the destination of the goods.

State Rate

The New Mexico state gross receipts tax rate is 5.125%. Cities, counties, and other local jurisdictions add their own rates on top of the state rate. Combined rates range from roughly 5.125% in unincorporated areas to over 9% in cities like Santa Fe and Albuquerque.

You can verify the rate for any location using our sales tax lookup tool.

Compensating Tax

New Mexico's equivalent of a use tax is the compensating tax. It applies when goods are purchased from out-of-state vendors who do not pay New Mexico GRT. The compensating tax rate matches the GRT rate. Items purchased for resale are exempt from compensating tax with proper documentation.

What Is Taxable in New Mexico?

New Mexico taxes an extremely broad base. Nearly all goods and most services are subject to GRT:

• Most tangible personal property is taxable
• Most services are taxable (broader than almost any other state)
• Groceries are taxable but subject to a deduction that effectively reduces the rate
• Prescription drugs are exempt
• Certain medical services are exempt
• Digital products and SaaS are generally taxable in New Mexico
• Construction services are taxable

What Form Do You Need?

New Mexico uses the Nontaxable Transaction Certificate (NTTC) system. For resale purchases, you need a Type 2 NTTC.

About the NTTC Type 2

The NTTC is different from exemption certificates in other states. NTTCs must be generated through the New Mexico Taxation and Revenue Department's online system. You cannot simply download a blank form and fill it in. Each NTTC is tied to a specific transaction or vendor relationship.

Key details:

• Type 2 is specifically for resale transactions
• The certificate is generated online through your CRS (Combined Reporting System) account
• Each NTTC includes a unique certificate number for verification
• The seller (vendor) can verify the certificate's validity online
• You must specify the vendor and the types of goods covered

Where to Get the NTTC

Log in to the New Mexico Taxation and Revenue Department's Taxpayer Access Point (TAP) at tax.newmexico.gov. From your account, navigate to the NTTC section and generate a Type 2 certificate for each vendor you purchase from for resale.

Important: NTTCs Cannot Be Backdated

New Mexico does not allow you to generate an NTTC retroactively. You must create the certificate before or at the time of the transaction. If you forget to generate one, the vendor is liable for GRT on the sale, and you cannot go back and create a certificate after the fact.

Who Needs a New Mexico Resale Certificate?

Any business purchasing tangible personal property or services for resale in New Mexico needs a Type 2 NTTC. This includes:

Retailers buying inventory for sale in brick-and-mortar stores, online platforms, or at markets and events.

Wholesalers and distributors purchasing goods from manufacturers or suppliers for redistribution.

Online sellers with a New Mexico CRS registration who purchase inventory for resale through Amazon, eBay, Shopify, or other channels.

Service providers purchasing goods or subcontracting services that will be directly resold to end clients. Because New Mexico taxes most services, this category is broader than in other states.

Restaurants and food businesses purchasing food ingredients that will be prepared and sold as meals.

Who Does NOT Qualify

• Consumers buying for personal use
• Businesses purchasing supplies, tools, or equipment for internal operations
• Contractors purchasing materials that will be consumed in the performance of a construction contract (special rules apply)

How to Apply for a New Mexico Resale Certificate

Step 1: Register for a CRS Number

You need a Combined Reporting System (CRS) identification number before you can generate NTTCs. This is New Mexico's equivalent of a sales tax license.

What you need to register:

• Federal EIN or SSN
• Business legal name and trade names
• Physical and mailing addresses
• Type of business entity
• Description of business activities
• Expected start date of business in New Mexico
• Federal tax classification

Registration is free. Apply online through New Mexico's Taxpayer Access Point (TAP) at tax.newmexico.gov.

Processing time: Online registrations are typically processed within 1 to 2 weeks.

Step 2: Generate a Type 2 NTTC

After your CRS registration is active, log in to TAP and navigate to the NTTC section. Create a Type 2 certificate for each vendor you plan to buy from for resale. Specify the types of goods covered.

Step 3: Provide the NTTC to Your Vendors

Give the generated NTTC (or its certificate number) to your vendor. The vendor can verify it online and will not owe GRT on the qualifying transaction.

Want help with the process? We handle everything from CRS registration to NTTC generation guidance.

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Multi-State Considerations

New Mexico's unique GRT system creates specific challenges for multi-state businesses.

Not an SST Member

New Mexico is not a member of the Streamlined Sales Tax (SST) agreement. The state's gross receipts tax system is fundamentally different from the sales tax framework that SST is built around. This means the SST certificate is not valid in New Mexico. You must use the NTTC system.

Economic Nexus

New Mexico's economic nexus threshold is $100,000 in gross receipts from sales to New Mexico customers in the prior calendar year. There is no transaction count threshold. Businesses exceeding this amount must register for a CRS number and report GRT.

Marketplace Facilitator Rules

New Mexico requires marketplace providers (the state's term for marketplace facilitators) to collect and remit GRT on behalf of third-party sellers. If you sell through Amazon, eBay, or similar platforms, the marketplace handles GRT on those transactions.

Origin-Based Tax

Remember that New Mexico is an origin-based (seller-based) tax state. The GRT rate is determined by the seller's location, not the buyer's. This is the opposite of most destination-based sales tax states. Multi-state businesses sourcing goods from New Mexico vendors should be aware that the rate depends on where the vendor operates.

For more on multi-state compliance, see our multi-state resale certificate guide.

Common Mistakes with New Mexico NTTCs

Mistake 1: Treating GRT Like a Sales Tax

The most common error is assuming New Mexico works like other sales tax states. The tax is on the seller's gross receipts, not on the buyer's purchase. Using language or processes from sales tax states can cause confusion and compliance errors.

Mistake 2: Not Generating NTTCs Before the Transaction

NTTCs must be generated before or at the time of the purchase. You cannot create one retroactively. If you forget, the vendor owes GRT on the sale, and there is no way to fix it after the fact.

Mistake 3: Using Out-of-State Exemption Certificates

New Mexico does not accept the SST certificate, MTC certificate, or exemption certificates from other states. Only NTTCs generated through the New Mexico TAP system are valid for deducting GRT on qualifying transactions.

Mistake 4: Misunderstanding the Origin-Based Rate

Businesses that buy from vendors in high-rate jurisdictions like Santa Fe or Albuquerque face combined GRT rates that can approach 9%. Understanding this is critical for pricing and cost calculations.

New Mexico-Specific Rules You Should Know

The NTTC Verification System

Every NTTC has a unique number that vendors can verify online through the TAP system. This verification capability means that New Mexico has tighter controls on exemption claims than many other states. Vendors who accept invalid or expired NTTCs can be held liable for unpaid GRT.

Services Are Broadly Taxable

New Mexico taxes most services, which is unusual. Professional services, construction services, repair services, and many others are subject to GRT. This broad tax base means that businesses buying services for resale also need Type 2 NTTCs, not just businesses buying physical goods.

Grocery Deduction

New Mexico allows a deduction from gross receipts for sales of food items intended for home consumption. This is not technically an exemption but functions similarly by reducing the seller's GRT liability. Businesses in the food industry should understand this deduction and how it interacts with the NTTC process.

Construction Industry Rules

New Mexico has complex rules for the construction industry. Contractors are generally considered the consumers of the materials they install. However, certain construction-related businesses may qualify for NTTCs depending on the nature of the transaction. Consult with a tax professional if you operate in this sector.

Pueblo and Tribal Lands

Transactions on Pueblo or tribal lands may be subject to tribal taxes rather than (or in addition to) New Mexico GRT. This adds a layer of complexity for businesses operating in or near tribal areas. New Mexico GRT generally does not apply to transactions that occur entirely on tribal land, but the rules vary by agreement.

How Much Can You Save?

With combined GRT rates ranging from 5.125% to over 9%, the savings from a proper NTTC are significant.

Use our savings calculator to calculate your exact savings.

New Mexico Resale Certificate FAQs

Q: Does the NTTC expire? A: NTTCs do not have a fixed expiration date, but they are only valid as long as your CRS registration is active. Vendors may request updated certificates, and the state can revoke NTTCs if your registration lapses.

Q: Can I use an SST certificate or MTC certificate in New Mexico? A: No. New Mexico does not accept the SST certificate, MTC certificate, or any other multi-state form. You must use an NTTC generated through the state's TAP system.

Q: Is there a fee for CRS registration? A: No. New Mexico does not charge a fee for CRS registration.

Q: Why does New Mexico call it a gross receipts tax instead of a sales tax? A: Because the tax is imposed on the seller's gross receipts from doing business in the state, not on the buyer's purchase. The legal incidence is on the seller. This distinction affects how the tax is reported, how rates are applied (origin-based), and how exemptions work.

Q: What is the difference between GRT and compensating tax? A: GRT applies to in-state transactions. Compensating tax applies to purchases from out-of-state vendors who are not subject to GRT. The rate is the same. Items purchased for resale are exempt from both, provided you have proper documentation.

Get Started with Your New Mexico Resale Certificate

New Mexico's gross receipts tax system is unlike any other state. Understanding the NTTC process, the seller-based rate structure, and the broad tax base is essential for compliance. Get your CRS registration, generate your Type 2 NTTCs, and start saving on every inventory purchase.

• Expert CRS registration guidance
• Help navigating the NTTC generation process
• Ongoing compliance support for GRT reporting

Get Your Resale Certificate -->

For more details on New Mexico's requirements, visit our New Mexico state page.

New Mexico's system is unique, but the savings are real. Register for your CRS number, generate your NTTCs before each purchase, and keep careful records. The state's verification system means proper documentation protects both you and your vendors.

Related Articles

• What Is a Resale Certificate? - New to resale certificates? Start with the fundamentals.
• Understanding Sales Tax Nexus - Learn when you are required to register in New Mexico and other states.
• Resale Certificate Mistakes That Trigger Audits - Avoid the most common errors that lead to penalties.