Credit card processing and merchant services in New Mexico
New Mexico taxes the business, not the sale, through its gross receipts tax, and that shapes how your receipts and checkout should read.
Card surcharges
Surcharging allowedNo state surcharge law found, so card network caps apply: 3% for Visa, 4% for Mastercard, or your cost if lower. No debit.
Sales tax
4.875% state GRT, plus local
Last checked
October 6, 2026
New Mexico doesn't have a sales tax in the usual sense. It has a gross receipts tax, and the Taxation and Revenue Department is clear about who owes it: GRT is imposed on businesses, though it's common to pass it on to the purchaser. If you do pass it on, it has to be stated separately on the invoice. That's a setup decision for your POS and your online checkout, not a footnote.
The rate depends on location. The state's 4.875% is the base, and counties and municipalities add their own rates, so the total changes from place to place. In general you use the location code and rate for where your goods, or the product of your service, are delivered, with exceptions such as professional services. Since July 1, 2025, rates change only in July, apart from special situations like a natural disaster. One review a year usually keeps your terminals current.
Selling into New Mexico from another state? Businesses without a physical presence, marketplace sellers included, owe GRT once they reach $100,000 in taxable gross receipts in the previous calendar year.
On surcharges, we found no New Mexico statute that bans or caps them, so as of October 2026 the card network rules set the limits: credit cards only, never more than your cost, at most 3% on Visa and 4% on Mastercard, with notice at the door and the register and a line on the receipt. Each neighbor we cover is stricter. Texas still has its ban in the statute, Oklahoma caps surcharges at 2% or your cost, whichever is less, and Colorado at 2% or your actual merchant discount fee.
The SBA Office of Advocacy counted 172,113 small businesses in New Mexico in its 2025 profile, employing 340,706 people. If yours is one of them, a free statement review will show what you pay today.
What New Mexico merchants should know
Credit card surcharges follow the card network rules
We found no New Mexico statute that bans or caps credit card surcharges, so the card network rules are the working limits. Visa caps a surcharge at your merchant discount rate or 3%, whichever is lower, and requires notice to your acquirer 30 days before you start. Mastercard caps it at your average effective merchant discount rate for Mastercard credit or 4%.
Neither network allows surcharges on debit or prepaid cards. Tell New Mexico customers about the surcharge at the point of entry and the point of sale, and print it on every receipt. Rules can change, so confirm with your processor before you start.
Sources: Visa, U.S. Merchant Surcharge Q and A; Visa, Credit card processing fees and interchange rates; Mastercard, Credit card surcharge rules and fees for merchants
Gross receipts tax is a tax on the business
New Mexico's gross receipts tax applies to businesses that sell property, perform services, or lease or license property in the state. It is imposed on the business, but it's common to pass it on to the purchaser, and a business that does must state it separately on the invoice.
The state rate of 4.875% is the base for local option taxes. The total rate for a location combines the rates imposed by the state, the county and the municipality.
Sources: New Mexico Taxation and Revenue Department, Gross receipts tax overview; New Mexico Taxation and Revenue Department, Who must file?; New Mexico Taxation and Revenue Department, Local option taxes
Rates follow the delivery location
In general, businesses use the location code and tax rate for where their goods, or the product of their service, are delivered. There are exceptions, such as professional services, and the department's FYI-200 publication explains how to choose the right location and rate.
Before July 1, 2025, rates could change in January or July. Starting July 1, 2025, they change only in July, unless a special situation such as a natural disaster lets a county or municipality change its rate in January. The department posts current rate schedules and a location code map.
Sources: New Mexico Taxation and Revenue Department, Gross receipts tax overview; New Mexico Taxation and Revenue Department, Gross receipts tax rates
Out-of-state and marketplace sellers
Businesses with no physical presence in New Mexico, including marketplace providers and sellers, are subject to gross receipts tax if they had at least $100,000 of taxable gross receipts in the previous calendar year.
Source: New Mexico Taxation and Revenue Department, Gross receipts tax overview
Cities we cover in New Mexico
Payment services we provide
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Common questions
Is it legal to add a credit card surcharge in New Mexico?
We found no New Mexico statute against it, so the card network rules apply: credit cards only, no more than your cost of acceptance, a 3% ceiling on Visa and 4% on Mastercard, 30 days' notice to your processor for Visa, and disclosure at the entrance, the register and on the receipt. Debit and prepaid cards can't be surcharged.
Do I charge customers gross receipts tax in New Mexico?
The tax is legally on your business, but the Taxation and Revenue Department says it's common to pass it on to the purchaser. If you do, it must be stated separately on the invoice, so set your POS and online checkout to show it as its own line.
Which gross receipts tax rate do I use for a delivery in New Mexico?
Generally the rate for the location where the goods, or the product of your service, are delivered, using the department's location codes. Professional services are one exception. The department publishes current rate schedules and a location code map, and its FYI-200 publication walks through the choice.
How often do New Mexico gross receipts tax rates change?
Once a year, in July, since July 1, 2025. Before that, rates could change in January or July. A county or municipality can still change its rate in January in a special situation such as a natural disaster, so check the schedule each July and after any local emergency.
Do out-of-state sellers owe New Mexico gross receipts tax?
Yes, once they cross the threshold. Businesses with no physical presence in New Mexico, marketplace providers and sellers included, owe gross receipts tax if they had at least $100,000 of taxable gross receipts in the previous calendar year.
Other states we serve besides New Mexico
- Alabama
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington, DC
- West Virginia
- Wisconsin
- Wyoming
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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