Farmington NM tax rates include a combined gross receipts tax of 8.1875 percent as of January 2026, a property tax calculated by mill levy on one-third of a home’s appraised value, a 5 percent city lodgers tax on short-term stays, and New Mexico’s graduated personal income tax running from 1.7 to 5.9 percent.1City of Farmington. 2026 Gross Receipts Tax Rates January 1 2026 to June 30 2026 Each tax runs through a different collector, which is where most compliance mistakes happen.
Gross Receipts Tax Rate
New Mexico does not have a traditional sales tax. The state instead charges businesses a gross receipts tax on the total they receive from selling goods, performing services, and leasing property. Businesses almost always pass the cost to buyers, so it looks and feels like a sales tax at the register.
Farmington’s 8.1875 percent combined rate breaks down into a 4.875 percent state base plus local increments imposed by the city and San Juan County.1City of Farmington. 2026 Gross Receipts Tax Rates January 1 2026 to June 30 2026 The city’s location code is 16-121, which businesses use when filing returns. Rates can change mid-year, and businesses operating near municipal boundaries should confirm the correct rate for each transaction location.
Late filers face a civil penalty of 2 percent per month on the unpaid tax, capped at 20 percent of the amount owed.2Justia Law. New Mexico Code 7-1-69 – Civil Penalty for Failure to Pay Tax or File Return Willful evasion raises the penalty to 50 percent.
Property Tax
Property tax is not a flat percentage. It is calculated using mill levies, where one mill equals one dollar of tax per $1,000 of taxable value. Taxable value is one-third of the full appraised value set by the San Juan County Assessor’s Office.3San Juan County, NM. General Tax Info A home appraised at $300,000 therefore has a taxable value of $100,000, and the mill levy applies to that figure.
The specific mill rate depends on where the property sits and which overlapping taxing districts apply. School districts, the county, and special districts each add their own levy. Non-residential properties generally carry higher combined rates than single-family homes. The Assessor revalues property at least every two years, and owners who disagree with a valuation can file a protest with the county.
Exemptions and the Senior Valuation Freeze
Veterans receive an exemption of up to $10,000 off the taxable value of their property, and that benefit extends to the veteran’s unmarried surviving spouse.4New Mexico Department of Veterans Services. State Benefits Veterans with a service-connected disability may qualify for a full exemption on their principal residence. New Mexico also offers a standard $2,000 head-of-family exemption available to most homeowners.
Homeowners aged 65 or older whose modified gross income stays below roughly $42,900 can lock their home’s assessed value at what it was the year they turned 65. The same freeze applies to permanently disabled homeowners at any age who meet the income limit.5Cornell Law Institute. N.M. Admin. Code 3.6.5.24 – Valuation of Residential Property You apply through the San Juan County Assessor’s Office and must requalify annually.
Payment Deadlines
Property tax bills are payable in two installments. The first half is due November 10 and becomes delinquent after December 10. The second half is due April 10 and becomes delinquent after May 10. You can pay the full amount with the first installment if you prefer.
Late payments incur a penalty of 1 percent per month on the delinquent amount, capped at 5 percent, plus interest at 1 percent per month with no cap. The uncapped interest is what makes a small missed bill grow quickly, so clearing the balance matters more than the size of the original amount owed.
Lodgers Tax
Guests staying in hotels, motels, or short-term rentals within Farmington pay a 5 percent lodgers tax on gross rent.6City of Farmington. Lodgers Tax Gross rent includes the room rate plus mandatory fees like cleaning, pet, and booking charges. The city also imposes a convention center fee of $2.50 per room per day occupied.
If you operate a short-term rental in Farmington, you collect and remit this tax yourself. Platforms like Airbnb and Vrbo do not collect or remit Farmington’s lodgers tax for property owners.6City of Farmington. Lodgers Tax Registration and reporting run through the city’s Neumo Tax and Licensing portal, not through the state. The city actively monitors listings, and skipping this step is one of the most common mistakes new operators make.
New Mexico Personal Income Tax
Farmington residents owe New Mexico personal income tax on their earnings. The state uses a graduated rate structure with brackets running from 1.7 percent on the lowest tier of taxable income up to 5.9 percent on income above the highest threshold. You are a New Mexico resident for tax purposes if you are domiciled in the state for the full year or physically present for 185 days or more, regardless of where your legal domicile sits.
The state return starts with federal adjusted gross income and applies state-specific deductions and credits. Available credits include a low-income comprehensive tax rebate and credits for certain renewable energy installations. Social Security benefits are exempt from state tax for most filers, but other retirement income such as pensions and IRA withdrawals is generally taxable.
Where to File and Pay
Three different entities collect Farmington’s taxes, and knowing which one handles what prevents misdirected payments.
Gross receipts tax, personal income tax, and most other state-administered taxes flow through the New Mexico Taxation and Revenue Department’s Taxpayer Access Point, an online portal for filing returns and making payments.7NM Taxation and Revenue Department. Online Services Paper filers mail business tax returns to P.O. Box 25128, Santa Fe, NM 87504-5128, and personal income tax correspondence to P.O. Box 25122, Santa Fe, NM 87504-5122.8NM Taxation and Revenue Department. Contact Information Using the wrong box delays processing.
Property tax payments go to the San Juan County Treasurer’s Office, in person, by mail, or online through the county’s own portal. Lodgers tax is remitted directly to the City of Farmington through the Neumo system.6City of Farmington. Lodgers Tax State, county, city: three channels, three taxes, no overlap.