Doing Business in Rio Rancho

Taxation

Corporate Income Tax

Corporate income tax is imposed only on the net income of domestic corporations or foreign corporations’ business within the state or from the state, or deriving income from property or employment within this state. "Corporation" means corporations, joint stock companies, real estate trusts organized and operated under the Real Estate Trust Act and limited liability companies and partnerships taxed as corporations under the Internal Revenue Code.  "Net income" is federal taxable income adjusted to exclude amounts not taxable by states. 

The corporate tax structure levies taxes only on net income of the corporation’s business within the state.  Separate filing is permitted.  There is a double-weighted sales apportionment factor option for manufacturers.  The corporate income tax piggybacks onto the Internal Revenue Code.  The rates, based on federal taxable income rates, are:

  • Up to $500,000: 4.8%

  • $500,000- $1 million: $24,000 + 6.4% over $500,000

  • $1 million plus: $56,000 + 7.5% over $1 million

For more information, see NMTRD free publication Corporate Income Tax and Corporate Franchise Tax (FYI- 350) available for download at www.state.nm.us/tax.

Corporate Franchise Tax

A uniform fee of $50 per corporation is levied annually. The franchise tax is imposed on each corporation included in the combined unitary or the consolidated tax returns if the corporation exercises its corporate franchise in New Mexico whether or not income tax is due.  The requirement to file and pay the franchise tax also falls on anyone who files a federal S-corporation return.

For more information, see NMTRD free publication Corporate Income Tax and Corporate Franchise Tax (FYI- 350) available for download at www.state.nm.us/tax.