Get Pte-pv Pass-through Entity Penalty Payment Voucher

By default, New Mexico LLCs are taxed as pass-through entities. This means that the LLC doesn't pay taxes; instead, the profits from the LLC pass-through to the taxes of the LLC members.

New Mexico taxpayers could be taking home an additional $500 or $1,000 this year, pending a flick of Gov. Michelle Lujan Grisham's pen.

The taxable net income of the PTE is taxed at the higher of the personal or corporate income tax rate. The highest rate for both personal and corporate income taxes is currently 5.9%.

Under legislation passed by the 2022 New Mexico Legislature and signed into law by Gov. Michelle Lujan Grisham, pass-through entities such as partnerships, S-Corporations and Limited Liability Companies now have the option of filing directly if they elect to do so.

Overview of New Mexico Taxes New Mexico has some of the lowest property tax rates in the U.S. The state's average effective property tax rate is 0.73%. The median annual property tax paid by homeowners in New Mexico is $1,557, about $1,200 less than the national median.

The state imposes a governmental gross receipts tax of 5.00% on the receipts of New Mexico state and local governments. The exceptions are the gross receipts of public school districts and entities licensed by the Department of Health that are principally engaged in providing health care.

The tax rate of the entity level tax is equal to the higher of the maximum individual income tax rate imposed pursuant to section 7-2-7 NMSA 1978 or the maximum corporate income tax rate imposed pursuant to section 7-2A-5 NMSA 1978 for the taxable year, both currently 5.9%.

The State of New Mexico requires pass-through entities (which may be a state law partnership or a limited liability company taxed as a partnership) to withhold tax at 5.9% on earnings of non-resident partners or members if the owner's distributive share of net income is over $100 in a year.