New Mexico does not have a state sales tax. However, the state imposes a gross receipts tax (GRT) on many business transactions. This resembles a sales tax, but unlike most states’ sales taxes, it applies to services and tangible goods. GRT is imposed on businesses; however, it can be passed along to customers. The rate for the GRT is found by the address where the goods will be delivered. If you do business in New Mexico be sure you understand the rules for GRT.
GRT is imposed on sales of tangible personal property as well as services. New Mexico requires you to register with the state and pay GRT if you are “engaged in business in New Mexico.” Here are a few of the scenarios that New Mexico says create a nexus for GRT (link in resources with more detail): 1. Having a business location in New Mexico
2. Making deliveries into New Mexico using the taxpayer’s vehicles
3. Performing services in New Mexico
GRT rates for photographers are determined based on where the product of the service is delivered (the photographs).
<aside> ➡️ NOTE: Based on this definition, traveling to New Mexico for a photoshoot would create a nexus in the state. So if the photoshoot is in New Mexico and the client receives their goods in New Mexico, GRT applies to the sale.
</aside>
A link with information on how to register for GRT is included in the resources below.
New Mexico Gross Receipts Tax Overview GRT - Who must file? GRT - Determining Nexus New Mexico Business Registration Information
<aside> 💜 WANT MORE?
⭐️Enroll: Financially Focused Photographer Academy ⭐️Want to hand it all over to the pros? → Learn more ⭐️Penalties by state for sales tax non-compliance
</aside>
Already a monthly client? Reach out inside the client portal for specific guidance.
<aside> 📢 We want you to know that we have diligently crafted this sales tax guide to the best of our abilities, with the resources we have access to, including calling the states themselves for clarity. Please be advised that this guide is only ever as up-to-date as the date at the bottom of this page. We strive to keep this as up-to-date as possible as we use this internally in our firm for our clients. We must also acknowledge the dynamic nature of tax regulations. For this reason, we would like to suggest that you confirm its accuracy with the state directly, instilling confidence in this guide's reliability for your photography business.
</aside>
Last Updated 02/2025 - By Bastian Accounting | Accountant & Tax Pros for Photographers