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Sales tax on labor in New Mexico: the gross receipts tax covers labor on every kind of job
In New Mexico the tax is the gross receipts tax, a tax on the business's receipts rather than a sales tax, and it covers labor on every kind of job: repairs, installation and new construction. Read from New Mexico's own revenue pages, checked November 6, 2026, with every answer quoted below.
The tax in New Mexico
Gross receipts tax, not a sales tax. New Mexico has a gross receipts tax (GRT), not a sales tax: it is imposed on the business for receipts from selling property and performing services, and is commonly passed on to the customer (separately stated on the invoice).
- “Gross receipts are the total amount of money or value of other consideration received from: ... Performing services in New Mexico ... If you are selling item or services in New Mexico, GRT is due unless an exemption or deduction applies to your sale.” — Gross Receipts Tax Overview (NM Taxation and Revenue Department), no date on the page
- “Gross receipts tax (GRT) is imposed on businesses, but it is common for a business to pass the GRT on to the purchaser. If GRT is passed on to the customer, it is required to be separately stated on the invoice.” — Gross Receipts Tax Overview (NM Taxation and Revenue Department), no date on the page
Repairing a thing in New Mexico
Taxed. Fixing a thing is performing a service in New Mexico, and receipts from services are subject to gross receipts tax.
- “Gross receipts are the total amount of money or value of other consideration received from: ... Performing services in New Mexico ... If you are selling item or services in New Mexico, GRT is due unless an exemption or deduction applies to your sale.” — Gross Receipts Tax Overview (NM Taxation and Revenue Department), no date on the page
- “Excluded from the meaning of "construction" are activities such as, but not limited to: hauling to or from the construction site, maintenance work, landscape upkeep, the repair of equipment or appliances” — 3.2.1.11 NMAC — Construction (NM Administrative Code), no date on the page
Repairing a home or building in New Mexico
Taxed. Repair and maintenance work on buildings is a service subject to gross receipts tax.
- “Gross receipts are the total amount of money or value of other consideration received from: ... Performing services in New Mexico ... If you are selling item or services in New Mexico, GRT is due unless an exemption or deduction applies to your sale.” — Gross Receipts Tax Overview (NM Taxation and Revenue Department), no date on the page
- “Excluded from the meaning of "construction" are activities such as, but not limited to: hauling to or from the construction site, maintenance work, landscape upkeep, the repair of equipment or appliances” — 3.2.1.11 NMAC — Construction (NM Administrative Code), no date on the page
Installation work in New Mexico
Taxed. Installation is a service; its receipts are subject to gross receipts tax.
- “Gross receipts are the total amount of money or value of other consideration received from: ... Performing services in New Mexico ... If you are selling item or services in New Mexico, GRT is due unless an exemption or deduction applies to your sale.” — Gross Receipts Tax Overview (NM Taxation and Revenue Department), no date on the page
- “Service includes construction activities and all construction materials that will become part of the construction project.” — FYI-105: Gross Receipts & Compensating Taxes - An Overview, page date: 08/11/2025
New construction in New Mexico
Taxed.
- “Service includes construction activities and all construction materials that will become part of the construction project.” — FYI-105: Gross Receipts & Compensating Taxes - An Overview, page date: 08/11/2025
Listing labor separately on the bill in New Mexico
Does not change the answer. Labor and materials are both part of gross receipts. What must be separately stated is the tax itself, if you pass it on.
- “Gross receipts are the total amount of money or value of other consideration received from: ... Performing services in New Mexico ... If you are selling item or services in New Mexico, GRT is due unless an exemption or deduction applies to your sale.” — Gross Receipts Tax Overview (NM Taxation and Revenue Department), no date on the page
- “Gross receipts tax (GRT) is imposed on businesses, but it is common for a business to pass the GRT on to the purchaser. If GRT is passed on to the customer, it is required to be separately stated on the invoice.” — Gross Receipts Tax Overview (NM Taxation and Revenue Department), no date on the page
Materials on jobs in New Mexico
What New Mexico's own pages say about the materials:
- “Receipts from the sale of tangible personal property to a person in the construction business (7-9-51). Requirement: the tangible personal property by design and intent must become part of a construction project ... upon its completion the construction project must be subject to gross receipts tax.” — FYI-105 — Construction Deductions, page date: 08/11/2025
Trade services New Mexico taxes
The services New Mexico's own pages name as taxed, each in the page's words:
- “Gross receipts are the total amount of money or value of other consideration received from: ... Performing services in New Mexico”
Where New Mexico's list of services comes from
- “Gross receipts are the total amount of money or value of other consideration received from: ... Performing services in New Mexico ... If you are selling item or services in New Mexico, GRT is due unless an exemption or deduction applies to your sale.” — Gross Receipts Tax Overview (NM Taxation and Revenue Department), no date on the page
- “Excluded from the meaning of "construction" are activities such as, but not limited to: hauling to or from the construction site, maintenance work, landscape upkeep, the repair of equipment or appliances” — 3.2.1.11 NMAC — Construction (NM Administrative Code), no date on the page
What was not checked for New Mexico
- Deductions and exemptions that could apply to particular trade jobs in New Mexico were not researched. Only the general rule is shown: services are taxed unless a deduction or exemption applies.
Check with the New Mexico Taxation and Revenue Department
Before you bill: check with the New Mexico Taxation and Revenue Department. As of November 6, 2026.
This is a plain-words summary of each state's own revenue guidance as of November 6, 2026, not tax advice. Rules have exceptions, and cities and counties can add taxes of their own. Check with the state's tax department, linked on every state's page, before you bill.
Compare New Mexico with every state's answer, or with its neighbours just below.
Official sources for New Mexico
- Gross Receipts Tax Overview (NM Taxation and Revenue Department) — no date shown
- FYI-105 — Construction Deductions — 08/11/2025
- 3.2.1.11 NMAC — Construction (NM Administrative Code) — no date shown
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