Navigating New Mexico’s Cannabis Tax Landscape: A Dispensary Owner’s Guide
Key Points
Dual Tax Obligations: New Mexico dispensaries must collect both a Cannabis Excise Tax and Gross Receipts Tax (GRT) on adult-use sales.
Medical Sales Are Different: Medical cannabis is exempt from the excise tax and may qualify for GRT deductions.
Monthly Filing Required: Operators must file both taxes every month, even with no sales.
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More Sales, More Taxes, More Complexity
If you’re operating a dispensary in New Mexico, chances are you’re hustling hard to serve customers and grow your business in a rapidly expanding market. But with increased demand comes a thorny truth: the state’s cannabis tax structure is not easy to navigate.
Between the Cannabis Excise Tax and New Mexico’s unique Gross Receipts Tax (GRT), dispensary owners face a double whammy of monthly tax obligations—with serious penalties for noncompliance.
This guide breaks down everything you need to know to stay on the right side of the law while keeping more of your green.
New Mexico Cannabis Excise Tax: What You Need to Know
Let’s start with the newer of the two major taxes: the Cannabis Excise Tax, which applies specifically to adult-use (recreational) cannabis sales.
Current Rate: 12% of the retail sales price
Future Hikes: This rate will increase by 1% each July starting in 2025, until it reaches 18% in 2030
Who Pays? You collect the tax from customers at the point of sale, then remit it to the state
Exemptions: This tax does not apply to medical cannabis sales
Gross Receipts Tax (GRT): The Old-School NM Tax That Still Applies
Unlike most states with a traditional sales tax, New Mexico uses a Gross Receipts Tax (GRT)—a tax on your total business revenue, not just profit.
That means yes: you’re taxed on revenue before you deduct expenses like rent or payroll.
Base State Rate: 5.125%
Local Add-ons: Depending on your location, you could owe up to 9.063% total
Taxable Base: Applies to the full amount of receipts from the sale of cannabis products
Double Trouble: You pay this in addition to the Cannabis Excise Tax on adult-use sales
Do Medical Sales Get a Break?
Yes—but with caveats.
Excise Tax: Medical sales are exempt
GRT: Medical cannabis may qualify for a deduction under New Mexico's "prescription drug" statute (Section 7-9-73.2 NMSA 1978)
But don’t assume exemption—it requires correct classification and strict recordkeeping and reporting. Something a cannabis tax expert can help you with.
Filing Like a Pro: What’s Due and When
Here’s where a lot of dispensaries get tripped up: you must file both tax returns monthly, whether you made money or not.
Cannabis Excise Tax: Use Form TRD-41415; due by the 25th of the following month
Gross Receipts Tax: Use Form TRD-41413; also due by the 25th
Even if you made $0 in sales, you’re still required to file a zero-dollar return.
Stay Sharp: Penalties and Compliance Red Flags
Here’s what’s at stake if you miss a filing or underreport:
Late Penalties and Interest charges can pile up fast
License Renewals: The Regulation and Licensing Department requires tax compliance for license renewal
Audit Risk: Noncompliance increases the chance of a state audit, and potentially an IRS look under the hood
According to New Mexico Cannabis Control Division, over 80% of operators in 2024 were not up to date on excise tax filings—don’t be in that crew.
Final Word: Taxes Are a Part of the Hustle
You didn’t start a dispensary to become a tax expert—but if you don’t get this right, it could cost you big time.
That’s where a cannabis-savvy accountant or outsourced CFO comes in. At Growise CPAs, we help New Mexico operators navigate every form, filing, and exemption with confidence. From reconciling your books to keeping your tax calendar clean, we’re here to keep you compliant—and profitable.
Let’s talk if you need help with tax planning, cleanup, or just getting your filings back on track.