Is contractor labor taxable in New Mexico?

Yes. New Mexico taxes the LABOR on repair and maintenance work to real property, on both residential and commercial jobs. Repair and maintenance is not the same thing as a capital improvement — the classification of the job is what decides the tax, not the wording on the invoice. Source: NMSA 1978 §7-9-4 (gross receipts tax on receipts from performing services and selling property in New Mexico).

WhatNew Mexico
Repair labor — residentialTaxable
Repair labor — commercialTaxable
Repair materials — residentialTaxable
Repair materials — commercialTaxable
Capital improvementNot exempt

Notes

GRT is levied on the CONTRACTOR's receipts and is customarily passed through as a separate line. Construction services and construction materials can be deducted by the buyer under §7-9-52 with a Type 6 NTTC — the certificate is what makes it deductible, not the nature of the work.

Source

NMSA 1978 §7-9-4 (gross receipts tax on receipts from performing services and selling property in New Mexico). — last checked 2026-09-15.

This is a summary of a state’s published guidance, not tax or legal advice. Rates and rules change, local jurisdictions add their own, and the treatment of a specific job depends on the contract and the work. Check the citation and speak to a CPA or a state tax adviser before relying on it.

How Seayora uses this rule

Seayora resolves this rule on every invoice a contractor raises — per line, from the job site’s own address — and prints the rate, the jurisdiction and this citation on the document itself, so the estimate a customer accepts is the invoice they are billed. Where the rule is more nuanced than a single answer, Seayora refuses to guess a total rather than quoting a confident wrong one.

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