We put safety at the core of our business
New Mexico (NM) does not impose a traditional retail sales tax. Instead, the state applies a Gross Receipts Tax (GRT) on businesses engaged in selling goods and services, including precious metals. Although the tax is legally imposed on the seller, it is typically reflected in the final purchase price paid by the buyer.
Because the Gross Receipts Tax applies to most transactions and no exemption exists for precious metals, purchases of gold, silver, platinum, and palladium bullion are subject to this tax. Federal taxation rules also apply when precious metals are sold at a profit, and New Mexico taxes capital gains as part of state income tax.
Precious metals such as gold and silver are classified as collectibles under U.S. federal tax law. Profits realized when selling investment metals may therefore be subject to federal capital gains tax, with a maximum rate of 28%, depending on income level and holding period.
Capital gains tax generally applies when metals are sold for fiat currency or exchanged for goods and services. No tax is due simply for purchasing or holding bullion.
New Mexico taxes capital gains as ordinary income under its progressive state income tax system. New Mexico has six income tax brackets with rates ranging from 1.5% to 5.9%, following a restructuring under HB 252 (Laws 2024). remoteworklaws.com New Mexico does not distinguish between short-term and long-term capital gains — all gains are taxed at the same progressive rates as ordinary income.
One notable benefit: while capital gains are taxable as personal income in New Mexico, the state allows taxpayers to claim a deduction equal to the larger of 40% of net capital gains or $1,000 of net capital gains. This provides a partial offset on state capital gains taxation.
New Mexico applies a Gross Receipts Tax rather than a traditional sales tax. The statewide GRT rate is 5.375%, and local jurisdictions can add additional tax, resulting in combined rates that can reach up to approximately 9.5% depending on location.
Unlike most other states, New Mexico provides no exemption for investment-grade precious metals. All purchases of gold, silver, platinum, and palladium — in bar, coin, or any other form — are subject to the GRT at the applicable combined rate. The GRT applies equally to bullion bars, bullion coins, numismatic coins, jewelry, and other precious metal items, with no distinction based on product type or investment intent.
The GRT is technically imposed on the seller rather than the buyer, but it is standard practice for dealers to pass this cost on to customers in their pricing. Investors should verify the applicable combined rate at their dealer's location, as rates vary by municipality.
New Mexico is one of the less favorable states for precious metals investors. The Gross Receipts Tax applies to all precious metals purchases with no exemption, at a combined rate that typically ranges from around 7% to 9.5% depending on location — among the higher effective rates in the country. This meaningfully increases the acquisition cost of physical bullion.
Capital gains from precious metals sales are also subject to New Mexico's progressive state income tax of up to 5.9%, with a partial offset available through the state's capital gains deduction (40% of net gains or $1,000, whichever is greater). Investors should factor the GRT burden when evaluating New Mexico as a purchasing location.