New Mexico Gross Receipts Tax on Construction (2026): Tax on the Whole Remodel
How New Mexico taxes the whole remodel, labor included, and three jobs worked at 4.875%.
Not tax advice. General information from each state's revenue department, checked Oct 29, 2026. Rates shown are the state rate; city and county tax is extra where it applies. The facts of your job and contract can change the answer; for a specific job, ask a tax professional in your state.
The rule in New Mexico
Whole job taxed
Gross receipts tax applies to the whole job, labor included, at the rate where the job sits.
4.875%
4.875% plus county and city
Itemizing or time and materials
Separating labor doesn't exclude it.
Nontaxable transaction certificate for materials
Source: NM TRD FYI-105 (TRD FYI-105, July 2024)
“Service includes construction activities and all construction materials”
Three jobs, worked
| Job | Customer | You pay |
|---|---|---|
| Bathroom $12,000 job, $5,000 materials | $585 | $0 |
| Kitchen $40,000 job, $15,000 materials | $1,950 | $0 |
| Addition $90,000 job, $35,000 materials | $4,387.50 | $0 |
On the kitchen: 4.875% on the full $40,000, labor included.
Also check
- Buy materials with a nontaxable transaction certificate so they aren't taxed twice.
New Mexico sales tax questions
Do contractors charge sales tax on labor in New Mexico?
Gross receipts tax applies to the whole job, labor included, at the rate where the job sits.
What rate applies to a remodel in New Mexico?
4.875% plus county and city.
Do contractors pay tax on materials in New Mexico?
Buy materials that go into the job with a Type 6 nontaxable transaction certificate. GRT then applies once, on the job price.
Compare other states
How we checked
We read each state's sales tax rule for construction contractors on the revenue department or legislature site, and its 2026 state rate. Two independent research passes covered all 50 states and DC, and a third reviewer checked the result. Where a state's own page would not load, the row names the copy we read. Last checked .
This guide explains the general rule for remodeling an owner-occupied home. It is not tax advice.