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Aircraft tax · United States

New Mexico aircraft sales and use tax

New Mexico taxes aircraft through its gross receipts tax, 4.875 percent state rate plus local, but half of the receipts from selling an aircraft are deductible and aircraft parts and maintenance are fully deductible. Aircraft rentals and flight instruction are taxed, and based aircraft register yearly in place of property tax.

Every answer below quotes the state's own source. Last checked October 18, 2026. Estimate the tax on your aircraft

Do you pay sales tax on an aircraft bought in New Mexico?

Depends. New Mexico's gross receipts tax, usually passed on to the buyer, runs from 4.875% to 10.8125% depending on location. Fifty percent of the receipts from selling an aircraft may be deducted, so the tax falls on half the price.

Do you owe use tax on an aircraft bought outside New Mexico?

Depends. Compensating tax applies to property used in New Mexico that was bought without gross receipts tax. A similar tax charged by another state may be credited, up to the compensating tax due.

What aircraft sales tax exemptions does New Mexico have?

Depends. Receipts of an aircraft manufacturer or its affiliate from selling aircraft, flight support, or pilot and maintenance training are fully deductible. In-state charter flights, with a pilot, are not subject to gross receipts tax. We found no nonresident fly-away deduction.

Are aircraft rentals taxed in New Mexico?

Taxed. Receipts from leasing airplanes are subject to gross receipts tax. A charter, where the operator supplies the pilot, is not a lease.

Is flight instruction taxed in New Mexico?

Taxed. Flight instruction receipts are subject to gross receipts tax, as are the school's airplane rentals.

Are aircraft parts and maintenance labor taxed in New Mexico?

Exempt. Receipts from selling aircraft parts, and from maintenance services on aircraft or aircraft parts, are fully deductible from gross receipts.

Does New Mexico register or tax aircraft every year?

Taxed. Aircraft based or hangared in New Mexico register every year with the Aviation Division, in place of personal property tax. The fee runs from two cents a pound of maximum gross weight for a model a year old or less down to one cent a pound at five years or more, capped at $300 per engine; a hot air balloon pays $10.

AerScheduler can add sales tax, at the rates you set, to the invoices you raise for parts, labor and other charges, taxing only the lines your state taxes. How it works

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