Do I owe both lodgers tax and gross receipts tax?

Yes. Lodgers tax is locally imposed up to 5%, and state gross receipts tax applies separately. Both must be collected from guests and remitted to the proper authorities.

Are stays over 30 days exempt?

Lodgers tax applies only to stays under 30 consecutive days. Longer-term rentals are generally exempt from lodgers tax but may still be subject to gross receipts tax.

New Mexico Taxes & Fees (2026)

Key Facts

Maximum lodgers tax: 5% of gross rent
Stay threshold: Under 30 days
State authority: NMSA 3-38-13
Gross receipts tax: Applies statewide
Registration agency: NM Taxation and Revenue

Source: Justia Law

Full Breakdown

Under the Lodgers' Tax Act (NMSA 3-38-13 et seq.), municipalities and counties may impose an occupancy tax of up to 5% on lodging stays under 30 consecutive days, including short-term rentals booked through platforms. Revenue must be used for tourism promotion or related public infrastructure. Separately, the state Gross Receipts and Compensating Tax Act (NMSA 7-9) applies state and local gross receipts tax to short-term rental income regardless of platform. Hosts must register with the New Mexico Taxation and Revenue Department, obtain a CRS identification number, and remit taxes monthly or quarterly.

Violations & Penalties

Failure to collect or remit lodgers tax and gross receipts tax may result in penalties, interest, audit assessment, and potential revocation of business registration with the state.

New Mexico Lodgers Tax and Gross Receipts on Short-Term Rentals

Key Facts

Full Breakdown

Violations & Penalties

Frequently Asked Questions

Sources

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