Farmington, New Mexico charges a combined gross receipts tax of 8.1875 percent as of January 2026, and that is the rate most residents and shoppers feel at the register.1City of Farmington. 2026 Gross Receipts Tax Rates January 1 2026 to June 30 2026 Property owners pay a mill-based tax through San Juan County, visitors staying overnight pay a 5 percent lodgers tax plus a convention center fee, and residents owe New Mexico personal income tax at graduated rates from 1.7 to 5.9 percent. Each tax has its own collector and its own deadlines.
Gross Receipts Tax
New Mexico does not levy a traditional sales tax. It taxes businesses for the privilege of doing business in the state, and the tax applies to the total receipts from selling goods, performing services, and leasing property. Businesses pass the cost along, so buyers see it as a line on the receipt, but the legal obligation belongs to the seller.
Farmington’s 8.1875 percent rate combines the state base of 4.875 percent with local increments imposed by the city and San Juan County.1City of Farmington. 2026 Gross Receipts Tax Rates January 1 2026 to June 30 2026 The city’s location code for filings is 16-121. Rates can shift mid-year, and businesses operating near the city limits should verify the correct rate for each transaction location before filing.
Late filings carry real cost. The civil penalty accrues at 2 percent per month on unpaid tax, capped at 20 percent of the amount owed.2Justia Law. New Mexico Code 7-1-69 – Civil Penalty for Failure to Pay Tax or File Return If the state finds a taxpayer willfully tried to evade the tax, the penalty rises to 50 percent of the amount due.
What Is Not Taxed
Not every transaction triggers the full rate. Businesses buying goods for resale, manufacturing inputs, or certain government contracts can obtain a Nontaxable Transaction Certificate from the Taxation and Revenue Department. The seller then deducts those receipts from their gross receipts total, which removes the tax on the qualifying purchase.3NM Taxation and Revenue Department. Non-Taxable Transaction Certificates NTTC The Type 2 resale certificate is the most common. Sellers must keep certificates on file as audit documentation; without one, the deduction is not available regardless of what the buyer intended to do with the goods.
Property Tax
Farmington property tax runs on mill levies, not a flat percentage. One mill equals one dollar of tax per $1,000 of taxable value, and taxable value is one-third of the full appraised value set by the San Juan County Assessor’s Office.4San Juan County, NM. General Tax Info A home appraised at $300,000 has a taxable value of $100,000, and the mill levy is applied to that figure.
The exact rate depends on where a property sits and which overlapping districts apply. School districts, the county, and special districts each add their own levy. Non-residential properties generally carry higher combined rates than single-family homes. The Assessor revalues property at least every two years, and owners who disagree with a valuation can file a protest with the county.
Exemptions and the Senior Valuation Freeze
Several programs reduce a Farmington homeowner’s bill. Veterans receive an exemption of up to $10,000 off taxable value, and the benefit extends to an unmarried surviving spouse. Veterans with a service-connected disability may qualify for a full exemption on their principal residence.5New Mexico Department of Veterans Services. State Benefits A standard $2,000 head-of-family exemption is available to most homeowners.
The valuation freeze is the most valuable program for long-term residents. Homeowners 65 or older whose modified gross income stays below roughly $42,900 can lock their home’s assessed value at what it was the year they turned 65. Permanently disabled homeowners at any age qualify under the same income limit.6Cornell Law Institute. N.M. Admin. Code 3.6.5.24 – Valuation of Residential Property You apply through the San Juan County Assessor and requalify annually.
When Property Tax Is Due
Bills are payable in two installments. The first half is due November 10 and becomes delinquent after December 10. The second half is due April 10 and becomes delinquent after May 10. You can pay the whole year with the first installment if you prefer. Late payments carry a penalty of 1 percent per month on the delinquent amount, capped at 5 percent, plus interest at 1 percent per month with no cap. The uncapped interest is what makes an ignored bill dangerous. It keeps compounding until you clear the balance.
Lodgers Tax on Short-Term Stays
Anyone staying in a hotel, motel, or short-term rental inside Farmington pays a 5 percent lodgers tax on gross rent.7City of Farmington. Lodgers Tax Gross rent includes the room rate plus mandatory charges like cleaning fees, pet fees, and booking fees. The city also imposes a convention center fee of $2.50 per room per day occupied.
If you rent out a property in Farmington on a short-term basis, the collection duty is yours. The city notes that Airbnb and Vrbo do not collect or remit Farmington lodgers tax for property owners.7City of Farmington. Lodgers Tax Registration and reporting run through the city’s Neumo Tax and Licensing portal, and the city monitors listings for compliance.
New Mexico Personal Income Tax
Farmington residents owe New Mexico personal income tax on their earnings. The state uses graduated brackets from 1.7 percent on the lowest tier up to 5.9 percent on income above the top threshold. You are treated as a resident for tax purposes if you are domiciled in New Mexico for the full year or physically present in the state for 185 days or more.
The state offers a low-income comprehensive tax rebate and credits for certain renewable energy installations. Social Security benefits are exempt from state tax for most filers, but other retirement income such as pensions and IRA withdrawals is generally taxable.
Where to File Each Tax
Three different offices collect the three main taxes, and mixing them up delays processing. Gross receipts tax, personal income tax, and other state-administered taxes go through the New Mexico Taxation and Revenue Department’s Taxpayer Access Point, which handles filings, payments, and account management online.8NM Taxation and Revenue Department. Online Services
Property tax payments go to the San Juan County Treasurer’s Office in person, by mail, or through the county’s payment portal. Lodgers tax goes directly to the City of Farmington through the Neumo system, not through the state.7City of Farmington. Lodgers Tax Knowing which entity gets which check is half the work of staying compliant in Farmington.