The Complete New Mexico STR Lodging Tax Guide: Airbnb and VRBO New Mexico Occupancy Tax Breakdown

As of January 2020, New Mexico law requires all vacation rental hosts to collect lodging taxes, regardless of how many rooms they offer. This increases a New Mexico host’s tax obligations and is something you need to be aware of before you start your short-term rental business. Join us as we break down the lodging and occupancy taxes in New Mexico.

New Mexico-Wide Lodging Tax Requirements for Airbnb Hosts

New Mexico treats short-term rental income much like other business income, meaning hosts face both state and local taxes on their rental revenue. Gross Receipts Tax (GRT) is the statewide tax applied to nearly all sales of goods and services – including short-term lodging. So, while they don’t necessarily have a statewide lodging tax, the GRT kind of replaces it.

The state GRT base rate is 5.0%, and after adding local option rates, the total GRT in New Mexico can range roughly from 5.125% up to about 8.7%, depending on the location​. This can make it a bit more complicated to understand.

For example, in Santa Fe, the combined state and local GRT is 8.1875%​, while in Albuquerque, it’s about 7.875%​. As a short-term rental host, you are responsible for GRT on your rental income; however, you can pass this tax to guests by including it in the price or as a separate line item.

For more specific information about your local GRT in New Mexico, you can search for your address on the official New Mexico Taxation and Revenue website.

County and City-Wide Occupancy Tax Requirements

Some cities and counties in New Mexico impose their own local lodging taxes or equivalent. These taxes are specific to their localities, so hosts should always be aware of the extra taxes that could be applicable to their rentals.

Most municipalities in New Mexico impose a standard 5% Lodgers’ Tax on short-term rentals. This includes Farmington, Roswell, Gallup, and Clovis, among others. Municipalities not specifically mentioned below would likely follow this standard. However, it’s always important to ask your local government or a tax professional, as this is meant to be more of a general guide.

Albuquerque City

Short-term rentals in the City of Albuquerque are subject to two local taxes on lodging. First is the city’s Lodgers’ Tax of 5%, which applies to the gross rental charges for stays up to 29 nights. Second, Albuquerque imposes a Hospitality Fee of 1% on the same short-term rental charges. Aside from these two local taxes, Albuquerque’s GRT rate totals 7.875% (combined state and local).

Example: A 3-night stay at $100 per night and a $50 cleaning fee.

• Total Nightly Revenue: $300
• Total Reservation Cost: $350
• Albuquerque Lodgers’ Tax (5%): $350 x 5% = $17.50
• Albuquerque Hospitality Fee (1%): $350 x 1% = $3.50
• New Mexico GRT for Albuquerque (7.875%): $350 x 7.875% = $27.56
• Total Taxes (13.875%): $48.56
• Total Charges: $398.56

Santa Fe City

The City of Santa Fe imposes a lodgers’ tax on all short-term rentals consisting of an Occupancy Tax of 5% and a Convention Center Fee of 2%, for a combined total of 7%. This 7% is Santa Fe’s lodgers’ tax rate for stays of less than 30 days, and it applies to the rent plus any cleaning fees charged to the guest.

On top of this, rentals in Santa Fe are subject to New Mexico’s gross receipts tax. Santa Fe’s combined GRT rate is currently 8.1875%​, one of the highest rates in the entire state.

Example: A 3-night stay at $200 per night and a $100 cleaning fee.

• Total Nightly Revenue: $600
• Total Reservation Cost: $700
• Santa Fe Occupancy Lodgers’ Tax (5%): $700 x 5% = $35.00
• Santa Fe Convention Center Fee (2%): $700 x 2% = $14.00
• New Mexico GRT for Santa Fe (8.1875%): $700 x 8.1875% = $57.31
• Total Taxes (15.1875%): $106.31
• Total Charges: $806.31

Taos

The Town of Taos imposes a Lodgers’ Tax of 5% on all short-term rentals within the town limits. This 5% tax applies to STR reservations of fewer than 30 days, including vacation rentals, Airbnb listings, casitas, etc., on the total rent paid by the guest. The GRT rate in the Town of Taos is roughly around 7.375% as of 2025.

Prior to 2020, very small Taos Airbnbs or hosts with under 3 rooms were exempt from lodgers’ tax, but that exemption is gone, and all STRs must collect the 5% tax.

Example: A 2-night stay at $200 per night and a $50 cleaning fee.

• Total Nightly Revenue: $400
• Total Reservation Cost: $450
• Taos Lodgers’ Tax (5%): $450 x 5% = $22.50
• New Mexico GRT for Taos (7.5%): $450 x 7.5% = $33.75
• Total Taxes (12.5%): $56.25
• Total Charges: $506.25

Taos Ski Valley

The Village of Taos Ski Valley imposes its own Lodgers’ Tax of 5% on gross rent for short-term lodging​. This tax applies to stays of less than 30 days. Luckily, Airbnb’s system recognizes Taos Ski Valley addresses and will add the 5% tax for reservations automatically​. Still, it’s definitely great to be aware of it so you can double-check.

According to the New Mexico GRT rate map, the GRT in Taos Ski Valley is 9.4375% as of 2025. It’s definitely one of the highest across the board.

Example: A 5-night stay at $300 per night and a $150 cleaning fee.

• Total Nightly Revenue: $1500
• Total Reservation Cost: $1650
• Taos Ski Valley Lodgers’ Tax (5%): $1650 x 5% = $82.50
• New Mexico GRT for Taos Ski Valley (9.4375%): $1650 x 9.4375% = $155.72
• Total Taxes (14.4375%): $238.22
• Total Charges: $1888.22

Truth or Consequences

The City of Truth or Consequences imposes a Lodgers’ Tax of 5% on short-term rentals, just like many other New Mexico municipalities​. If you host an Airbnb or STR inside the T or C city limits, you’ll need to collect a 5% tax on the gross rental charges, including cleaning fees and extra charges, for stays shorter than 30 nights.

According to the New Mexico GRT rate map, the GRT in Truth or Consequences is 8.375% as of 2025.

Example: A 4-night stay at $200 per night and a $130 cleaning fee.

• Total Nightly Revenue: $800
• Total Reservation Cost: $930
• Truth or Consequences Lodgers’ Tax (5%): $930 x 5% = $46.50
• New Mexico GRT for Truth or Consequences (8.375 %): $930 x 8.375% = $77.8875
• Total Taxes (13.375%): $124.3875 or $124.39
• Total Charges: $1054.39

Roswell

The City of Roswell imposes a 5% Lodgers’ Tax on short-term rentals, similar to other cities that follow the 5% standard. However, Roswell is one of the few cities that levies a separate Convention Center Fee, not as a percentage but as a flat per-night charge. In Roswell, the convention center fee is $2.50 per room per night for the first 15 nights of a stay.

Roswell has a GRT rate of 7.8958% on top of the Lodgers’ Tax and the Convention Center Fee.

Example: A 5-night stay at $120 per night and a $80 cleaning fee.

• Total Nightly Revenue: $600
• Total Reservation Cost: $680
• Roswell Lodgers’ Tax (5%): $680 x 5% = $34
• Convention Center Fee ($2.50 per night): $2.50 x 5 nights = $12.50
• New Mexico GRT for Roswell (7.8958%): $680 x 7.8958% = $49.75
• Total Taxes and Fees (12.8958% + $2.50 per night): $96.25
• Total Charges: $725.25

Wrapping Things Up

By understanding the state and local taxes and using the information above to calculate what taxes you owe, you’ll ensure you’re charging the right amounts and staying on the right side of New Mexico's tax law.

It may seem like a lot of numbers, but once you set your system (or confirm your platform’s collection), it becomes a routine part of hosting in the Land of Enchantment.

For more information about taxes and fees in New Mexico, be sure to check out the official New Mexico Taxation & Revenue website.