New Mexico tax payment plan through Tax & Rev
Through New Mexico’s Taxation and Revenue Department, you can create your own payment plan on the Taxpayer Access Point for up to 72 months. Any plan that continues past 12 months requires a lien.
- Longest plan allowed
- 72 months
- Lien required
- Over 12 months
- Interest in late 2026
- Yearly rate: 7%
- Cap for late penalties
- 20%
New Mexico: short and long term plans
New Mexico separates payment plans based on how long they last. On the Tax & Rev page about compliance, a short-term agreement has 12 or fewer installments. No lien is required. The Department ends the agreement and begins further collection if you miss a payment.
A long-term agreement lasts 13 to 72 months. As a formal written contract, it requires either a lien, which is a public claim against your property or other security approved by the state. By signing, you accept conclusive liability. You agree the amount is owed and you give up the right to dispute it. Records of agreements over $1,000 are open for inspection by anyone.
How do I begin a payment plan through TAP?
Most people use the state’s tax website, Taxpayer Access Point (TAP), to set up a plan on their own. You do not need to log in to create a plan. You select your down payment and the number of months for the plan, which can run for up to 72 months. The plan applies to every tax handled by the Department. Many requests get automatic approval. Staff will contact you if your request does not receive it.
Collection letters described on the compliance page often include a QR code. It opens a TAP page where you can pay everything or arrange a plan that is already approved. Save the letter ID number shown on the notice. Include it whenever you write to the Department.
Interest and penalties continue to grow
Charges continue even while you have a payment plan. According to the penalty and interest rates page, interest on unpaid tax builds daily and may change each quarter. From July 1 through December 31, 2026, the annual interest rate is 7%. No one can waive interest under the law. A late payment penalty of 2% applies to unpaid tax for each month or part of a month. The penalty cannot exceed 20%.
What can make a New Mexico payment plan fail?
While your plan remains current, the Department does not actively pursue collection, according to the compliance page. Your agreement enters default if you do any of the following:
- Pay too little or make a late payment
- Add new tax debt
- Fail to file a required return by its deadline
Liens, levies and collection agencies
After a plan default, collection may begin without notice and levies may seize funds and assets such as motor vehicles. Business owners may receive a court order that closes their business or takes its assets. The page about compliance explains that a warrant of levy may be served on your employer to take wages. A bank holding your money may also receive one.
When you have no plan, notices move through stages. In stage one, the notice is a Statement of Account. The other possible notice is a Notice of Assessment. After that comes a Notice of Intent to Lien. The other option is a Final Notice Before Seizure. Under Section 7-1-37 NMSA 1978, a lien arises automatically if tax remains unpaid after demand. Continued failure to respond first leads to a Notice of Intent to Outsource, according to the page about collection agencies. Next, the account goes to a private collection agency.
Making IRS and Tax & Rev payments together
Many people owe New Mexico and the IRS for the same tax year because of New Mexico’s personal income tax. Each plan requires your separate signature and each agency takes its own monthly payment. A state plan longer than 12 months results in a lien, so weigh a shorter term against what you can truly pay monthly.
Nearby states
Do you owe the IRS as well as Tax & Rev?
For one tax year, do you owe money to both New Mexico and the IRS? A licensed tax pro offers a free call. They can help you pick a plan length and fit both monthly payments within your budget.
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