Short-Term Rental Tax in New Mexico (NM)
The state-level tax rate on short-term rentals in New Mexico is 5.0% , consisting of 5.0% sales tax and 0.0% lodging tax. New Mexico applies general sales and lodging taxes to STRs without STR-specific legislation. Major platforms like Airbnb collect state taxes automatically. With local taxes, the total rate in Santa Fe reaches 12.4%. STR operators must register with the state. New Mexico charges a 5% state gross receipts tax (GRT) on short-term rentals. No separate state lodging tax. Cities and counties add local GRT portions of 1.5-4.5%. Some cities also impose a lodging tax.
Annual Tax Estimate for New Mexico
The table below shows estimated annual tax obligations at different nightly rates, assuming 65% occupancy (237 nights/year). Estimates are shown for both the state-level rate and the highest local rate (Santa Fe).
| Nightly Rate | Gross Revenue | State Tax (5.0%) | Santa Fe Tax (12.4%) |
|---|---|---|---|
| $100.00/night | $23,700 | $1,185 | $2,948 |
| $150.00/night | $35,550 | $1,778 | $4,422 |
| $200.00/night | $47,400 | $2,370 | $5,895 |
| $300.00/night | $71,100 | $3,555 | $8,843 |
| $500.00/night | $118,500 | $5,925 | $14,738 |
Estimates assume 65% occupancy. Actual tax may differ based on local exemptions, booking fees, and platform collection.
STR Tax Rates by City in New Mexico
Local taxes significantly impact the total STR tax burden in New Mexico. The table below shows combined state + local rates for 4 cities, sorted by total rate. The highest combined rate is 12.4% in Santa Fe.
| City | Local Tax | Total Rate | Tax on $200/night | Tier | Notes |
|---|---|---|---|---|---|
| Santa Fe | 7.4% | 12.4% | $24.88 | High | Santa Fe County 1.4375% + Santa Fe City 3.0% GRT + 3.0% lodging tax. STR permit required. |
| Taos | 6.3% | 11.3% | $22.50 | Moderate | Taos County 1.75% + Taos Town 1.5% GRT + 3.0% lodging tax. |
| Ruidoso | 6.1% | 11.1% | $22.25 | Moderate | Lincoln County 1.125% + Ruidoso 2.0% GRT + 3.0% lodging tax. |
| Albuquerque | 5.3% | 10.3% | $20.50 | Moderate | Bernalillo County 1.25% + Albuquerque 2.0% GRT + 2.0% lodging tax. |
How New Mexico Compares to Other States
Below is a comparison of New Mexico with five states that have similar state-level STR tax rates. This comparison helps illustrate where New Mexico stands relative to other states in terms of tax burden, platform collection, and registration requirements.
| State | State Rate | Sales Tax | Lodging Tax | Platform Collects | Registration |
|---|---|---|---|---|---|
| New Mexico (NM) | 5.0% | 5.0% | 0.0% | Yes | Required |
| Wisconsin (WI) | 5.0% | 5.0% | 0.0% | Yes | Required |
| Utah (UT) | 4.8% | 4.8% | 0.0% | Yes | Required |
| North Carolina (NC) | 4.8% | 4.8% | 0.0% | Yes | Required |
| Oklahoma (OK) | 4.5% | 4.5% | 0.0% | Yes | Required |
| Virginia (VA) | 4.3% | 4.3% | 0.0% | Yes | Required |
Frequently Asked Questions About New Mexico STR Taxes
What is the short-term rental tax rate in New Mexico in 2026?
The state-level tax rate on short-term rentals in New Mexico is 5.0%, consisting of 5.0% sales tax and 0.0% lodging tax. Local taxes can bring the total to 12.4% in cities like Santa Fe. At $200/night with 65% occupancy, the state-level tax alone is approximately $2,370 per year.
Does Airbnb collect STR taxes in New Mexico?
Yes. Airbnb, Vrbo collect state gross receipts tax. However, local and county taxes may not be covered by platform collection. Always verify with your local tax authority what taxes your platform collects on your behalf.
Do I need to register my short-term rental in New Mexico?
Yes. New Mexico requires STR operators to register with the state. This typically includes obtaining a sales tax permit and/or lodging tax registration. Many cities and counties in New Mexico also require local STR permits or business licenses. Check with both state and local authorities for specific requirements.
What is the total STR tax rate in Santa Fe, New Mexico?
The total combined tax rate in Santa Fe is 12.4%, which includes the 5.0% state rate plus 7.4% in local taxes. Santa Fe County 1.4375% + Santa Fe City 3.0% GRT + 3.0% lodging tax. STR permit required. At $200/night with 65% occupancy, this amounts to approximately $5,895 per year in taxes.
How much will I owe in STR taxes in New Mexico?
Your annual STR tax depends on your nightly rate, occupancy, and location. At the state level (5.0%), a property earning $200/night with 65% occupancy would owe approximately $2,370/year in state taxes alone. In Santa Fe, the total tax at the same rate would be approximately $5,895/year. Use our STR tax calculator for a customized estimate.
STR Tax Compliance Checklist for New Mexico
Follow these steps to ensure you are fully compliant with New Mexico short-term rental tax requirements. Missing any step could result in penalties or back-tax assessments.
- Register with the state — Obtain a New Mexico sales tax permit and/or lodging tax registration from the state Department of Revenue before accepting bookings.
- Check local permit requirements — Contact your city and county offices to determine if a local STR permit, business license, or zoning approval is required. Use our STR regulations lookup to check rules for your specific zip code. Many municipalities in New Mexico have separate registration processes.
- Determine your total tax rate — Your rate combines state taxes (5.0%) with any local/county taxes. In Santa Fe, the total reaches 12.4%. Use our calculator for your specific city.
- Verify platform collection — Airbnb, Vrbo collect state gross receipts tax. Confirm exactly which taxes are covered and which you must remit separately.
- Collect and remit taxes on schedule — New Mexico requires tax remittance on a monthly, quarterly, or annual basis depending on your revenue volume. File returns even in months with no bookings to maintain your account in good standing.
- Keep detailed records — Maintain records of all bookings, gross income, taxes collected, and expenses for at least 3 years. This documentation is essential for audits and for claiming deductions on your federal tax return.
Calculate Your New Mexico STR Tax
Use our STR tax calculator to get a personalized estimate of your annual tax obligation in New Mexico. Enter your nightly rate and occupancy to see your projected state and local taxes, or browse all 50 states to compare STR tax rates across the country.
Also check: STR regulations by zip code | Sales tax rates | Homestead exemptions | Landlord-tenant law