New Mexico has two things that surprise vendors: it uses a gross receipts tax instead of a sales tax, and Albuquerque adds its own permit layer on top of the state rules. The good news is the Homemade Food Act lets home cooks sell with no permit and no sales cap. Here's how New Mexico works.
The short version: New Mexico's Homemade Food Act lets you sell non-perishable home foods with no permit, no registration, and no inspection, just an accredited food handler card, and there's no sales cap. You can even mail-deliver within the state. Instead of a sales tax, New Mexico charges a gross receipts tax (GRT) on the seller, so you register with the Taxation and Revenue Department. Processed-food vendors need a $200/year permit from the Environment Department. Albuquerque adds its own city permit ($15 for produce, $50 for processed foods). Different products run through different agencies.
The goal is getting cleared to sell. Once you are, a Homegrown storefront ($10/month, 0% commission) makes taking New Mexico orders, pickups, and payments easy.
New Mexico's Homemade Food Act, effective July 1, 2021, is the route most home bakers and jam makers take. It requires no permit, no registration, and no inspection. The one thing you need is an ANAB-accredited food handler card from an approved vendor (voluntary registration with the Environment Department is also available).
There's no sales cap, and the allowed foods are broad: any non-temperature-controlled (non-potentially-hazardous) item. You can sell at farmers markets, festivals, roadside stands, by home pickup, online, and even by mail delivery within New Mexico. For the full list and labeling rules, see our New Mexico cottage food law guide and our walkthrough on how to start a cottage food business in New Mexico.
Here's a real New Mexico difference. The state doesn't have a sales tax. Instead it charges a gross receipts tax (GRT) on the seller. You register with the New Mexico Taxation and Revenue Department. Basic grocery food for home consumption is exempt from GRT, while prepared food sold at events may be taxable. Any business doing commerce in the state needs to register, so handle this even if much of your food is exempt.
If you sell in Albuquerque, the city adds its own permit on top of the state rules: about $15 for raw produce and honey, or $50 for processed foods, eggs, and meat. This is separate from the state requirements, so Albuquerque vendors should budget for the city permit too. Other cities may have their own rules, so check locally.
Different products run through different agencies in New Mexico:
Fresh, uncut produce needs no permit (except Albuquerque's $15 city fee).
There's no separate statewide sampling permit. Sampling is governed by local health authorities, so check with the authority covering your market.
Start at the official sources: the NMED Homemade Food program page for the home-food rules, and the New Mexico Farmers' Marketing Association permits page for a plain breakdown across agencies.
For non-perishable home foods under the Homemade Food Act, no permit, registration, or inspection is required, just an accredited food handler card, and there's no sales cap. Processed foods need a $200/year NMED permit. Albuquerque adds its own city permit. You register for gross receipts tax.
No. New Mexico uses a gross receipts tax (GRT) charged on the seller instead. You register with the Taxation and Revenue Department. Basic grocery food for home consumption is exempt from GRT, but prepared food may be taxable.
Albuquerque adds a city permit on top of state rules: about $15 for raw produce and honey, or $50 for processed foods, eggs, and meat. It's separate from the state requirements, so budget for it if you sell in Albuquerque.
No. There's no sales cap. The Homemade Food Act allows any non-temperature-controlled food with no permit, just an ANAB-accredited food handler card, and even allows mail delivery within the state.
It depends on your product. The Environment Department handles homemade and processed foods, the Department of Agriculture handles dairy and eggs, and the Livestock Board handles meat and poultry.
New Mexico is friendly for home cooks (no permit, no cap, mail delivery allowed), but two things stand out: the gross receipts tax instead of a sales tax, and Albuquerque's separate city permit. Match your product to the right agency, get your food handler card, and register for GRT. Once you're cleared to sell, a simple storefront makes pickups and payments easy. Set up a Homegrown storefront for $10/month at 0% commission, and check other states on our farmers market vendor permits by state guide.
*This guide is general information, not legal advice. Permit rules change and cities add their own layers. Verify current requirements with NMED, the Taxation and Revenue Department, and your city before selling. Last updated: June 2026.*
