Businesses operating in Albuquerque pay a combined Gross Receipts Tax of roughly 7.625%, register with the city annually, and follow state classifications by industry rather than a separate municipal income tax.
New Mexico does not levy a city-level business income tax. Instead, the state Gross Receipts Tax (NM §7-9-1+) is imposed on most business activity, with the combined Albuquerque rate of about 7.625% reflecting state, county, and municipal increments. Businesses must register with the New Mexico Taxation and Revenue Department and obtain an Albuquerque business registration through the Planning Department. Industry classifications affect deductions and exemptions — for example, food sales, healthcare, and certain professional services qualify for specific deductions. Out-of-state sellers meeting thresholds must also collect GRT on sales sourced to Albuquerque.
Operating without a business registration, under-reporting receipts, or applying the wrong NAICS classification can result in back-tax assessments, interest, audit penalties, and corporate-officer liability.
See how Albuquerque's business tax classification rules stack up against other locations.
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