(505) 891-4305
1201 Rio Rancho Blvd. Ste. C



The City of Rio Rancho has adopted a Comprehensive Economic Development Policy. The purpose of the Policy is to define, encourage, and guide sustainable, long-term, economic and community development in Rio Rancho. Eligible businesses establishing operations in the City have access to programs from both the City of Rio Rancho and the State of New Mexico. Among the incentives available to eligible companies considering expansion, relocation and/or consolidation to Rio Rancho are the following:

  • Fast Track Building Permits/ Construction Inspections

  • Impact Fee Waiver

  • Gross Receipts Investment Program (Retail Projects)

  • Industrial Revenue Bond Financing

  • High Wage Jobs Tax Credit

  • Manufacturing Investment Tax Credit

  • Film Production Incentives


  • Child Care Corporate Income Tax Credit

For detailed information about each incentive, please visit the New Mexico Economic Development Department.


  • Job Training Incentive Program

  • Step Up Training Program

  • New Mexico Workforce Connection (NMWC)

  • Additional Tax Credit Information

For detailed information about each incentive, please visit the New Mexico Economic Development Department.

Business Tax

Click here for the New Mexico Business Tax Competitiveness Study

New Mexico continues to make strides in being a tax friendly state. Kiplinger ranks New Mexico as the 8th most tax-friendly state. Ranked 35th overall in the 2016 State Business Tax Climate Index, New Mexico's breakdown in the five categories was the following:

• Corporate tax structure: No. 27
• Individual income tax structure: No. 34
• Sales tax structure: No. 48
• Property tax structure: No. 1
• Unemployment insurance tax structure: No. 7

Personal Income Tax

The New Mexico personal income tax (PIT) is based on federal adjusted gross income. The PIT rate is being phased down to 4.9 percent, effective for tax years beginning 2008. The minimum PIT rate is currently 1.7 percent and is not scheduled to change.

New Mexico imposes a tax on the net income of every resident. Residents are taxed on the net income from employment, unearned income, gambling, pensions, annuities, and income from real or personal property in this state or from businesses located in this state. Non-residents are taxed on the net income from property, employment or business in New Mexico. New Mexico’s personal income tax “piggybacks” on the federal return, using federal adjusted gross income figure as its base. Net income usually equals federal taxable income, although some special deductions are available.

New Mexico uses the same dollar amounts as the federal government for personal exemptions, standard deductions and itemized deductions. The 2003 New Mexico Legislature cut the taxable capital gains by half over a period of five years. For tax year 2006, the capital gains deduction increases to the greater of 40 percent or $1,000 and for tax years beginning 2007 New Mexico’s capital gains deduction is the greater of 50 percent or $1,000.
For more information, see NMTRD free publication Information for New Residents (FYI- 101) available for download at www.state.nm.us/tax.


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