New Mexico Cannabis Tax Rate
20–30% Total Effective TaxAdministering Agency: New Mexico Taxation and Revenue Department · Updated for 2026
Tax Breakdown
| Tax | Rate | Notes |
|---|---|---|
| State Cannabis Excise Tax | 14% | Applied to retail gross receipts |
| State Sales Tax | 4.88% | Applies to medical and adult-use sales |
| Typical Local Sales Tax | 2.5% | Average — actual rate varies by city/county |
| Local Cannabis Business Tax | Up to 0% | City-level cannabis-specific tax where allowed |
Official source: New Mexico Taxation and Revenue Department ↗ · rates compiled 2026-08-11 · verify current rates at the source before filing.
How Medical Cannabis Is Taxed
Medical cannabis is exempt from the Cannabis Excise Tax; gross receipts tax still applies. On a $100 pre-tax purchase that's roughly $14.00 less than an adult-use sale (before any local taxes, which vary by ordinance).
New Mexico Cannabis Tax Notes
14% Cannabis Excise Tax as of July 1, 2026 — the rate climbs 1 point each July under a statutory schedule until it caps at 18% in 2030. Plus gross receipts tax (state 4.875% + local up to ~4%). Medical cannabis is exempt from the excise.
City Cannabis Tax Rates in New Mexico
Cities in New Mexico can layer their own cannabis business tax on top of state taxes. Here are the reported rates for major cities — use the tax calculator to model a specific purchase:
| City | City Cannabis Tax | Total Effective Rate |
|---|---|---|
| Albuquerque | 0% | 21.38% |
| Las Cruces | 0% | 21.38% |
| Rio Rancho | 0% | 21.38% |
| Santa Fe | 0% | 21.38% |
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