Cannabis Tax Rates in New Mexico
This state has legalized both recreational and medical cannabis.
Tax Rate Breakdown
Overview
New Mexico offers one of the lowest cannabis tax rates among recreational states with just a 12% state excise tax. Cannabis sales are exempt from the state's gross receipts tax (New Mexico's equivalent of a sales tax), and no local cannabis-specific taxes are permitted. Medical cannabis patients are fully exempt from all taxes. This intentionally low rate was designed to undercut the illicit market and make legal cannabis accessible. Revenue funds general state operations, municipalities, and cannabis regulation.
Key Facts
- •12% state excise tax — one of the lowest recreational rates
- •Exempt from New Mexico gross receipts tax (sales tax equivalent)
- •No local cannabis taxes permitted
- •Medical cannabis fully tax exempt
- •Low tax rate designed to compete with illicit market
Frequently Asked Questions
What is New Mexico's cannabis tax rate?+
Is medical cannabis taxed in New Mexico?+
Why is New Mexico's cannabis tax so low?+
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See how New Mexico's cannabis tax rates compare to neighboring or similar states.
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Disclaimer: The information on this page is provided for educational and informational purposes only and does not constitute tax or legal advice. Cannabis remains illegal under US federal law. New Mexico tax rates and regulations are subject to change and may vary by local jurisdiction. Tax rates, revenue figures, and program details described here are based on publicly available information and may not reflect the most current regulations. Always verify current tax rates with official New Mexico state tax authorities and consult with a qualified tax professional. Cannabismarketcap does not guarantee the accuracy or completeness of any information presented.