New Mexico taxes personal income (Graduated, 6 brackets from 1.5% to 5.9%), and imposes no separate entity-level income tax on LLCs. A Wyoming holding company does not erase New Mexico's own entity-level obligations on a New Mexico subsidiary, but it can still add liability separation and keep the parent's ownership off New Mexico's public LLC filings.
New Mexico imposes no franchise tax or minimum annual tax on standard LLCs taxed as disregarded entities or partnerships. The $50 Corporate Franchise Tax only applies once an LLC affirmatively elects corporate or S-Corp federal tax treatment — it's classification-driven, not entity-driven, the same pattern seen in several other states.
The general federal tax treatment of holding companies (consolidated filings, dividends-received deductions, and the like) is set at the federal level and does not change state to state — what changes is the entity-level tax New Mexico itself charges an LLC or corporation formed or registered there.
New Mexico does not tax LLCs at the entity level and does not levy a franchise tax. Income earned by operating subsidiaries flows up through the holding company to the members, who report it on their personal returns; New Mexico taxes that income at graduated personal rates topping out at 5.9%, alongside federal tax. The wrinkle unique to New Mexico is the Gross Receipts Tax, which is imposed on the privilege of doing business rather than only on retail sales. A holding company that merely owns membership interests usually has no gross receipts to report, but an operating subsidiary that sells products or services in New Mexico must register for GRT and remit at a combined rate that varies by location.
New Mexico does not impose a value-based franchise tax. Instead, every domestic and foreign corporation owes a flat $50 annual Corporate Franchise Tax, reported on Form CIT-1 alongside the corporate income tax. New Mexico's corporate income tax is a single flat rate of 5.9% on net income apportioned to the state (the graduated brackets were eliminated effective 2025). Separately, the Secretary of State collects a $25 biennial Corporate Report. The Gross Receipts Tax (GRT), New Mexico's substitute for a sales tax, applies to most goods and many services at a combined 4.875% to 9%-plus rate depending on location (the state base rate is 4.875% effective July 2025).
There is no annual report filing to miss. New Mexico is one of only a handful of states that requires zero recurring Secretary of State filing for LLCs — no fee, no due date, and no administrative dissolution trigger tied to a report. You still need to keep your registered agent information current with the Secretary of State, but that's a passive obligation, not an annual filing.
A common structure pairs a Wyoming LLC as the parent with a New Mexico entity handling operations, holding property, or running a New Mexico-facing business.
The New Mexico entity still owes whatever New Mexico itself charges — no separate entity-level tax if it stays taxed as a pass-through LLC — regardless of where its parent is formed; pairing it with a Wyoming LLC does not change the New Mexico subsidiary's own filing or tax obligations. What the Wyoming parent adds is liability separation, and the Wyoming company's own ownership stays out of New Mexico's public LLC filings.
For more on the general structure, see the Wyoming holding company guide and how to set one up.
Tax agency reference: New Mexico Taxation and Revenue Department (tax.newmexico.gov).
Note: Tax rates, fees, and thresholds shown here reflect state tax research last verified July 2026; reconfirm current figures directly at tax.newmexico.gov before relying on them for a specific filing.
New Mexico's tax treatment of a holding structure comes down to its personal income tax (Graduated, 6 brackets from 1.5% to 5.9%) and the absence of a separate entity-level LLC tax. If you have questions about structuring a Wyoming-New Mexico holding arrangement, reach out through our contact form.
If you have questions about structuring a Wyoming-New Mexico holding arrangement, reach out through our contact form or call +1 (307) 683-0983 to speak with one of our experienced Business Success Advisors. Visit our homepage and blog for more.