The Reseller Index
Sponsor Your logo here: sponsor a week

Taxes / State tax rules / New Mexico

Selling on eBay, Poshmark or Etsy from New Mexico: sales tax and 1099-K rules

New Mexico's gross receipts tax is imposed on the seller, and a marketplace provider engaging in business in New Mexico reports and pays it on the sales it facilitates; a marketplace seller that is itself engaging in business there still reports those receipts and may deduct them under Section 7-9-117 NMSA 1978 with documentation from the provider. The Taxation and Revenue Department publications we checked say nothing about a separate New Mexico 1099-K rule; the federal test is over $20,000 in more than 200 transactions.

General information, not tax advice. Check with a tax professional about your own situation.

Checked against the official pages listed below on .

New Mexico in short

General sales tax:
Yes, gross receipts tax, 4.875% state rate
Marketplace facilitator law:
Yes: NMSA 1978 §§ 7-9-3(J), 7-9-3.3 and 7-9-3.5 (marketplace provider), § 7-9-117 (marketplace seller deduction), since Jul 1, 2019
When a marketplace must collect:
for a provider without physical presence, at least $100,000 of taxable gross receipts sourced to New Mexico in the previous calendar year
Form 1099-K:
No state rule stated on the pages checked

Who collects the tax on a marketplace sale

The marketplace provider reports and pays gross receipts tax on receipts it collects for sales it facilitates that are sourced to New Mexico, regardless of whether the marketplace seller is engaging in business in the state. Its gross receipts also include the fees it charges sellers.

If you sell only through marketplaces

A seller engaging in business in New Mexico, by physical presence or by the $100,000 test, must register and report; it may deduct marketplace receipts under Section 7-9-117 if it holds documentation that the provider is registered and has remitted or will remit the tax. If all receipts are deductible, FYI-206 says no tax is owed but reporting is still required. TRD counts only taxable receipts, those not exempt or deductible, toward the $100,000 test.

Registration, resale certificates and what changes when you also sell direct have their own page: New Mexico: seller's permit and resale certificate rules.

The law: NMSA 1978 §§ 7-9-3(J), 7-9-3.3 and 7-9-3.5 (marketplace provider), § 7-9-117 (marketplace seller deduction), effective .

"Beginning July 1, 2019, a person who lacks physical presence in New Mexico can have economic nexus. This includes marketplace providers."
New Mexico Taxation and Revenue Department, Determining Nexus, Gross Receipts Tax Economic Nexus
"If all receipts of the marketplace seller are deductible, the result will be that no tax is owed by the seller, though the reporting is still required."
New Mexico Taxation and Revenue Department, FYI-206, Gross Receipts Tax and Marketplace Sales (Rev. 07/2023), FYI-206 (Rev. 07/2023), Gross Receipts Exemptions and Deductions
"Gross receipts of a marketplace provider include the fees charged by the Marketplace provider to the Marketplace seller."
New Mexico Taxation and Revenue Department, FYI-206, Gross Receipts Tax and Marketplace Sales (Rev. 07/2023), FYI-206 (Rev. 07/2023), Determining if a seller is subject to gross receipts tax
"This deduction does not apply if the marketplace provider is determined not to owe the tax as a result of the marketplace provider's reliance on information provided by the seller."
New Mexico Taxation and Revenue Department, FYI-105, Gross Receipts & Compensating Taxes: An Overview (July 1, 2025 - June 30, 2026), Marketplace Seller Deduction (7-9-117)

Sources: FYI-206, Gross Receipts Tax and Marketplace Sales (Rev. 07/2023); FYI-105, Gross Receipts & Compensating Taxes: An Overview (July 1, 2025 - June 30, 2026); Determining Nexus.

New Mexico's gross receipts tax

New Mexico has a gross receipts tax, imposed on the seller, who may pass it on to the buyer, rather than a sales tax on the buyer. The state portion is 4.875%; the Department's rate schedule for July 1, 2026 through June 30, 2027 lists combined location rates up to 9.4375% (Taos Ski Valley), with Albuquerque at 7.6250% and the city of Santa Fe at 8.1875%. Since July 1, 2021, receipts from selling property are sourced to where the buyer receives it.

"The state's portion of the gross receipts tax (4.875%), which is also the largest portion of the tax, is determined by state law."
New Mexico Taxation and Revenue Department, FYI-105, Gross Receipts & Compensating Taxes: An Overview (July 1, 2025 - June 30, 2026), FYI-105 (July 1, 2025 - June 30, 2026), What is the gross receipts tax rate and how is it determined?
"The Gross Receipts Tax and Compensating Tax Rate Schedule provided in this kit is accurate as of 6/1/2026."
New Mexico Taxation and Revenue Department, GRT Filer's Kit for Reporting Gross Receipts Tax, July 2026 to June 2027, Announcements

Sources: FYI-105, Gross Receipts & Compensating Taxes: An Overview (July 1, 2025 - June 30, 2026); GRT Filer's Kit for Reporting Gross Receipts Tax, July 2026 to June 2027; FYI-206, Gross Receipts Tax and Marketplace Sales (Rev. 07/2023).

Form 1099-K: New Mexico and the federal test

FYI-105, FYI-206, the TRD-41413 return instructions and the Department's nexus page, all read for this page, say nothing about a New Mexico Form 1099-K requirement.

The federal test, for comparison: the IRS says a payment app or online marketplace must send a Form 1099-K when payments for goods or services total over $20,000 in more than 200 transactions, and adds: "However, they may send you a Form 1099-K with lower amounts and/or transactions." (Understanding your Form 1099-K, reviewed ). The Instructions for Form 1099-K count both parts for the calendar year, through each platform separately, and say the box 1a gross amount is figured without adjustments for credits, discounts, fees, refunds or shipping, so a 1099-K figure is not the same as profit. More on the federal rule in Form 1099-K for resellers.

Sources: FYI-105, Gross Receipts & Compensating Taxes: An Overview (July 1, 2025 - June 30, 2026); FYI-206, Gross Receipts Tax and Marketplace Sales (Rev. 07/2023); TRD-41413 Gross Receipts Tax Return Instructions (Rev. 07/01/2025); Determining Nexus.

Worked examples

Gross receipts tax on a $40 marketplace sale to Santa Fe

The Department's July 2026 to June 2027 schedule lists the city of Santa Fe at 8.1875%, so a $40.00 sale delivered there carries $3.275, about $3.28, of which the 4.875% state portion is $1.95. The marketplace provider reports and pays it on a facilitated sale.

New Mexico seller with marketplace and direct sales

A seller based in New Mexico has $30,000 of marketplace sales and $5,000 of direct sales to New Mexico buyers in a year. Under FYI-206 it reports all $35,000 on the TRD-41413 and deducts the $30,000 of marketplace receipts under 7-9-117 if it has the provider's documentation. On the $5,000 left, the 4.875% state portion alone is $243.75, before the local portions for each delivery location.

Everything deductible still means a return

If that same seller sold only through marketplace providers that pay the tax, all receipts would be deductible and the tax would be $0, but FYI-206 says reporting is still required and a late return draws a late filing penalty.

Edge cases and details

  • Receipts from an isolated or occasional sale by someone not regularly engaged in, or holding out as engaged in, selling the same or similar property are exempt under Section 7-9-28; FYI-206 names this exemption for marketplace sellers and points to Regulation 3.2.116.8 NMAC for the test.
  • TRD measures the $100,000 test for sellers without physical presence using only taxable gross receipts, those not exempt or deductible, from the previous calendar year. How that applies to an out-of-state seller whose sales all go through providers that pay the tax is a question for TRD or a tax professional.
  • Section 7-9-7.1 bars TRD from collection actions for periods before July 1, 2019 against a seller that lacked physical presence and did not report receipts before that date, FYI-206 says.
  • Marketplace providers can report the sellers they pay tax for on Form TRD-31117, the Marketplace Provider Data Sharing Agreement.
  • A buyer who needs to give a nontaxable transaction certificate on a marketplace purchase gives it to the marketplace provider, according to FYI-206.

What to do

  1. If you are in New Mexico or otherwise engaging in business there, get written documentation from each marketplace that it is registered with TRD and has remitted or will remit the tax; FYI-206 makes that the condition for the 7-9-117 deduction.
  2. Keep marketplace sales reports by delivery location, since New Mexico has used destination sourcing since July 1, 2021.
  3. Check with TRD or a tax professional before relying on the isolated or occasional sale exemption or on the $100,000 test.

Common questions

Who pays New Mexico gross receipts tax on a marketplace sale?

The marketplace provider, if it is engaging in business in New Mexico, reports and pays it on the receipts it collects for sales it facilitates. A seller engaging in business in New Mexico may deduct those receipts under Section 7-9-117 with the provider's documentation.

Do New Mexico marketplace sellers still file a return if the marketplace pays the tax?

FYI-206 says a seller required to file may take the deduction on the same TRD-41413 return, and if all receipts are deductible no tax is owed but reporting is still required.

When did New Mexico's marketplace provider rules start?

TRD says economic nexus, including for marketplace providers, began July 1, 2019.

Is there a New Mexico 1099-K threshold?

The TRD publications we checked say nothing about a separate New Mexico 1099-K rule.

Related

General information, not tax advice

This page summarizes New Mexico's own published pages and statutes as read on , and the IRS's 1099-K pages. It doesn't say what you should file, register for or pay. Rules depend on your situation and change: check with a tax professional, or with the state's revenue department.

Sources

Official pages this page is built from, with the day each was read.

Free 1-page Reseller Cheat Sheet: fees on 8 platforms, Media Mail and stamp prices

What each platform takes from a $10, $25 and $50 sale, Media Mail 1-10 lb, Ground Advantage to Zones 1, 5 and 8, and the Forever stamp, on one printable page. The link appears as soon as you sign up.