New Mexico Cannabis Tax Guide – 2025

Key Points

• New Mexico cannabis retailers must pay a statewide excise tax and location-specific Gross Receipts Tax (GRT).

• Excise tax rates are increasing annually through 2030; local GRT rates vary by city/county.

• Medical cannabis is exempt from excise tax and eligible for a GRT deduction — strict reporting applies.

• Timely, accurate filings are mandatory; noncompliance risks penalties and license renewal issues.

Understanding New Mexico’s Cannabis Tax Structure

New Mexico taxes adult-use cannabis with a statewide excise tax and a Gross Receipts Tax (GRT) that varies by locality. The excise tax applies only to adult-use sales, while GRT applies to both adult-use and medical sales. Medical cannabis is exempt from the excise tax and eligible for a GRT deduction, but providers must report these sales and deductions separately starting July 1, 2025.

Cannabis Excise Tax: What Retailers Need to Know

• 2025 Rate: 13% of the price paid for adult-use cannabis products, effective July 1, 2025 (up from 12%). The rate will increase by 1% annually until it reaches 18% in July 2030.

• Uniformity: The excise tax rate is statewide and does not vary by city or county.

• Who Pays: Only cannabis retailers (not wholesalers, manufacturers, or producers) selling to end consumers for non-resale purposes.

• Medical Sales: Exempt from the excise tax. Medical sales must still be reported for GRT purposes but are not subject to the excise tax.

Sales/Gross Receipts Tax: Local Impact on Cannabis Sales

• State Base Rate: 4.875%.

• City/County Add-Ons: Local GRT rates are added to the state base and vary widely. Retailers must use the correct location code based on where the product is delivered or picked up.

• 2025 Rate Examples:

• Calculation: GRT is charged on the total sales price, including the excise tax amount.

• Medical Sales: Providers can deduct medical cannabis sales from GRT liability, but starting July 1, 2025, these deductions must be separately reported using code D0-034.

Medical Cannabis: Tax Exemptions and Requirements

• Excise Tax: Medical cannabis sales are fully exempt from the excise tax.

• Sales/GRT: Medical sales are deductible from GRT; providers must file GRT returns and report medical receipts, then claim the deduction.

• Documentation: Detailed records are required, and deductions must be separately reported starting July 1, 2025.

Filing and Payment Deadlines

• Filing Frequency: Both excise tax and GRT are filed monthly by default. Businesses with less than $200,000 in annual taxable gross receipts may request quarterly GRT filing.

• Required Forms:

  • Excise Tax: Form TRD-41415 (Cannabis Excise Tax Return)

  • GRT: Form TRD-41413 (Gross Receipts Tax Return)

• E-Filing: Mandatory through the Taxpayer Access Point (TAP) portal (https://tap.state.nm.us).

• Zero Sales: Filings are required even if no sales occurred in the reporting period.

• Quarterly Option: Available for GRT if average monthly tax due is less than $200.

Penalties and Compliance Risks

• Late Filing: Subject to penalties and interest; late or missing filings can jeopardize license renewal.

• Noncompliance: May result in license suspension or revocation.

• Audit Risk: High for cannabis businesses; detailed recordkeeping and accurate location-based reporting are essential.

How to Calculate Your Total Cannabis Tax Obligation

1. Determine Your Location’s Tax Rate: Use the Gross Receipts Location Code and Tax Rate Map to find the correct GRT rate for your sales location or delivery address.

2. Calculate Excise Tax: Multiply the retail price of adult-use cannabis by 13% (for sales on/after July 1, 2025).

3. Add Sales/GRT: Apply the total GRT rate (state + local) to the sum of the retail price plus excise tax.

4. Medical Sales: Do not apply excise tax; report medical sales in GRT filings and claim the deduction using the correct code.

Key State Cannabis Trade Associations to Be a Part Of

• Southwest Cannabis Trade Association (SCTA): Advocacy, education, and networking for New Mexico’s cannabis industry, including hosting conferences and supporting social equity initiatives.

• Association for Cannabis Banking (ACB): Focuses on financial compliance, banking access, and regulatory updates for cannabis businesses, often in partnership with industry events.

• National Association of State Credit Union Supervisors (NASCUS): Provides resources and events related to cannabis banking and compliance.

Government Contact List

New Mexico Cannabis Control Division (RLD)

• Main Phone: (505) 476-4995

• Physical Address: 1209 Camino Carlos Rey, Santa Fe, NM 87507

• General Questions: rld.cannabiscontrol@rld.nm.gov

• Licensing: ccd.licensing@rld.nm.gov

• Compliance: ccd.compliance@rld.nm.gov

• Complaints: ccd.complaints@rld.nm.gov

• Track-and-Trace Support: nmhelp@biotrackthc.com or 1-800-797-4711

New Mexico Taxation and Revenue Department

• Website: tax.newmexico.gov

• Administers: Cannabis Excise Tax, Gross Receipts Tax, State Income Tax

New Mexico Cannabis Taxes Financial Calendar

• E-filing is mandatory for excise and GRT filings.

• Quarterly GRT filing is available for businesses with low average monthly tax due.

• All businesses must file, even with zero sales.

Note: This is current as of July 2025. 

This guide is for informational purposes only. Always seek advice from a qualified tax or legal professional before making business, tax, or compliance decisions.