How the tax works
For adult-use cannabis sold from 1 July 2026 through 30 June 2027, New Mexico charges 14% cannabis excise on the pretax selling price. The retailer also owes state and local gross receipts tax (GRT), which is often passed through to the buyer. Since July 2023, the cannabis excise is excluded from the GRT base, so this estimate applies both rates separately to the same pretax price. The state GRT portion is 4.875%; without a checked local rate, $100 shows only a $118.88 state-rate minimum. A qualifying medical cannabis sale is deductible from GRT and exempt from adult-use excise, giving $100 on a $100 price in this estimate.
The one checked location is Las Cruces city at 8.39% total GRT; $100 adult-use there totals $122.39 when that GRT is passed through. Use it only if the customer receives the sale within the city's tax jurisdiction. For other locations, check the transaction location and date with New Mexico's official rate map or table, then enter the full GRT rate. This calculator assumes the retailer passes the GRT through as a checkout charge; confirm the receipt, and do not use an older example that taxes the cannabis excise again.
Use a pretax retail price after discounts, excluding separately stated taxes. Tax-inclusive advertised prices must be converted to a pretax price first. Store fees, delivery charges and receipt rounding can change the amount owed; this estimate does not resolve their tax treatment.
Sources and limits
- New Mexico TRD: current cannabis excise, medical deduction and rate schedule
- New Mexico TRD: local gross receipts tax and state 4.875% rate
- New Mexico TRD: 2023 GRT filers kit, excise base exclusion
- Las Cruces: gross receipts tax location codes
- New Mexico TRD: GRT location code and rate map
- New Mexico TRD: current and historic GRT tables
Rates and eligibility can change. Check the official sources, your transaction type and location before relying on a checkout estimate. This is general information, not tax or legal advice.