New Mexico CPA — Audit, Tax & Advisory Services in NM

Key New Mexico Tax Numbers. Personal income tax: graduated, top rate 5.9% on income above approximately $210,000 single / $315,000 joint. Corporate income tax: graduated, top rate 5.9%. No traditional sales tax — instead, NM imposes the Gross Receipts Tax (GRT) at a combined state-plus-local rate typically 5.125%–9% depending on jurisdiction. Estate tax: none (NM repealed its estate tax effective 2010 to conform with federal repeal). Pass-through entity (PTE) elective tax: rate matches personal IT (5.9%), available since tax year 2022.

Filing Mechanics. Individuals (residents and nonresidents/PY) file Form PIT-1. C-corporations file Form CIT-1. Partnerships file Form PTE; S-corps file Form S-Corp. PTE election is made on partnership/S-corp returns. GRT is filed on Form CRS-1 (Combined Reporting System). Returns are due April 15 and administered by the New Mexico Taxation and Revenue Department (TRD).

The New Mexico GRT — Different From a Sales Tax. New Mexico does not technically have a sales tax — it has the Gross Receipts Tax (GRT), structurally similar to Hawaii's General Excise Tax (GET). GRT is a tax on the seller's gross business receipts (not on the buyer), applying to virtually all business activity in NM including services (professional fees, consulting, legal, medical, accounting), rentals, leases, and most goods. The combined state-plus-local rate typically ranges from 5.125% (state base) to about 9% in higher-tax cities. While GRT is generally passed through to customers as a separate line item, it remains the seller's tax obligation — meaning out-of-state sellers with NM nexus must register, collect, and remit GRT regardless of customer reimbursement. We handle NM GRT registration, the CRS-1 filing, the unique deductions and exemptions (services-to-services, manufacturing exemption, government sales), and the recent reforms taxing certain digital goods and SaaS services.

The Federal Science Complex — Los Alamos & Sandia. New Mexico hosts two of the U.S. Department of Energy/NNSA's three nuclear weapons laboratories: Los Alamos National Laboratory (LANL — birthplace of the atomic bomb under the Manhattan Project; site of plutonium pit production and weapons R&D; operated by Triad National Security) and Sandia National Laboratories (Albuquerque — weapons systems engineering, non-nuclear components; operated by NTESS, a Honeywell subsidiary). Combined with Kirtland AFB (Air Force Nuclear Weapons Center), White Sands Missile Range, Holloman AFB (F-16 training), and Cannon AFB (special operations), New Mexico has the highest concentration of federal scientific and defense activity per capita in the U.S. We support the substantial federal contractor and FFRDC employee population.

The Permian Basin — New Mexico's Oil Boom. The southeastern New Mexico counties of Eddy (Carlsbad) and Lea (Hobbs) sit over the New Mexico portion of the Permian Basin — the most productive oil basin in the United States. NM Permian production has grown massively, generating substantial state oil and gas severance tax revenue. Permian operators include ConocoPhillips, ExxonMobil/XTO, Chevron, Mewbourne, Devon, Endeavor, EOG, Pioneer Natural Resources, Diamondback, and many independents. We support NM oil and gas professionals with severance tax compliance, depletion (cost vs. percentage), intangible drilling costs (IDC), §1031 like-kind exchanges, and the unique royalty-owner tax issues facing NM Permian families with mineral rights.

NM Film — "Tamalewood". New Mexico has one of the most generous state film production tax credits in the U.S. (currently 25–35% refundable credit on qualifying NM production expenditures, with bonus credits for productions outside the Albuquerque/Santa Fe metro and for NM-resident workforce). Albuquerque (nicknamed "Tamalewood") and Santa Fe have hosted major productions including Breaking Bad and Better Call Saul, The Avengers, Logan, No Country for Old Men, Sicario, and ongoing Netflix/Apple/Amazon productions. We support NM film professionals with production company structuring for credit eligibility, loan-out corporation planning, production services GRT issues, and federal-level §181 production cost expensing where applicable.

New Mexico Economy & Who We Serve. New Mexico's economy spans federal nuclear and defense (LANL, Sandia, Kirtland, White Sands, Holloman, Cannon), oil and gas (NM Permian Basin — Eddy and Lea counties; Four Corners San Juan Basin natural gas), film production (Albuquerque, Santa Fe), tourism and arts (Santa Fe, Taos, Carlsbad Caverns, White Sands National Park, Indian markets), tribal gaming and tribal economic enterprises (23 sovereign Indian nations), healthcare and education (UNM, NMSU, Presbyterian, Lovelace), renewable energy (significant wind and solar build-out), and agriculture (chile peppers — Hatch, pecans, dairy, beef, cotton). Our typical NM clients include LANL/Sandia federal contractor employees and consultants, Albuquerque film professionals, Permian Basin oil/gas operators and royalty owners, Santa Fe arts and HNW families, real estate investors, and tribal-affiliated business owners.

CPA Mobility in New Mexico. New Mexico has adopted CPA mobility provisions under the Uniform Accountancy Act. Kurt Simmons holds active CPA licenses in Maryland, Delaware, and Florida, and we confirm all applicable New Mexico Public Accountancy Board mobility and firm registration requirements before commencing any engagement.

Cities and Communities We Serve. Our virtual-first practice serves clients across all of New Mexico, including Albuquerque (largest city; Sandia; Kirtland AFB; UNM), Santa Fe (state capital; arts; HNW), Rio Rancho (Intel), Las Cruces (NMSU; White Sands), Roswell, Farmington (Four Corners; San Juan Basin gas; Navajo Nation), Clovis (Cannon AFB), Carlsbad (Permian; WIPP), Hobbs (Permian), Los Alamos (LANL), Alamogordo (Holloman AFB; White Sands), Taos (resort/HNW), Gallup (Navajo Nation), Silver City, Las Vegas NM, the Four Corners region, the Pueblo communities, and every New Mexico county.