New Mexico Corporate Income Tax: Everything You Need to Know

The state of New Mexico is located in the southwest of the country. It is renowned for its stunning natural surroundings, vibrant culture, and varied economy. The existence of a corporate income tax in New Mexico is something you should be aware of if you’re thinking about setting up shop there. This article will address this query as well as others regarding corporation taxation in New Mexico. Is There a Corporate Income Tax in New Mexico?

Yes, there is a business income tax in New Mexico. All businesses operating within the state are subject to this tax. New Mexico levies a flat 5.9% corporate income tax on all federally taxable income. Since 2018, this rate has been in effect.

No, New Mexico is not a state with consolidated reporting. This implies that businesses based in the state are exempt from the requirement to submit a single report that covers all of their subsidiaries. Instead, for taxation purposes, each subsidiary is viewed as a distinct entity. However, businesses with activities in more than one state must divide their income between those locations, with New Mexico receiving a certain percentage based on their sales, assets, and payroll there. Is there a personal property tax on vehicles in New Mexico? Yes, vehicles are subject to personal property tax in New Mexico. All motor vehicles, including cars, trucks, and motorbikes, are subject to this tax on an annual basis. Your tax burden is determined by the value of your car and the county’s tax rate. Although the tax rate varies from county to county, it normally falls between 1% and 3% of the value of the vehicle.

There are numerous taxing authorities in New Mexico that are in charge of collecting various taxes. One of these is the New Mexico Taxation and Revenue Department, which is in charge of carrying out the state’s tax laws and obtaining taxes such the gross receipts tax, the personal income tax, and the corporate and personal income taxes. County governments, local governments, and special districts including water authorities and education districts are some of the other taxing bodies in the state.

In conclusion, New Mexico levies a flat 5.9% corporate income tax on all federally taxable revenue. Corporations must apportion their income to New Mexico according to a method that takes into account their sales, property, and payroll in the state because the law does not allow combined reporting. Vehicles in New Mexico are subject to a personal property tax, the rate of which varies by county. Finally, the state has a number of taxing agencies that are in charge of collecting various taxes.