What is the Motor Vehicle Excise Tax (MVET) percentage for a vehicle purchase?

The MVET percentage in New Mexico is 4% of the price paid for a new or used vehicle less any trade-in credit.  However, for certain non-dealer sales, (Private Party/Owner-to-Owner sales), the N.A.D.A. value is used if the declared purchase price of the vehicle is lower than 80% of the N.A.D.A. average trade-in or wholesale value.

When is the N.A.D.A. value used to calculate MVET?

Every time a used vehicle is being titled, MVD will ascertain the N.A.D.A. average trade-in/wholesale value for the vehicle and calculate 80% of said value.  If the calculated value is higher than the sale price stated in documents presented by the customer, then that calculated N.A.D.A. value must be used to calculate the MVET.

However, the following limited exceptions apply:

1. 1. If the sale is by a licensed dealer, a dealer invoice must be presented at the MVD office and the MVET will be calculated off of the price paid indicated on the dealer invoice.
   2. If no N.A.D.A. average trade-in/wholesale value is available, (as is the case for most vehicles older than 20 years), MVD will accept the stated price from the Title or Bill of Sale (Form MVD-10009).
   3. If the vehicle’s title has a “Salvage” brand, MVD will accept the stated price from the Title or Bill of Sale (Form MVD-10009).
   4. If the N.A.D.A. website provides a “rough trade-in” value and a “clean trade-in” value, but no “average trade-in” value, (as is the case for motorcycles), MVD will use a value that is 80% of the lower, rough trade-in value.

How does a trade-in affect the MVET?

A trade-in reduces the MVET on a vehicle since you only have to pay taxes on the difference after your trade-in credit.  For example, if you purchase a vehicle for $40,000, but you trade in a vehicle and get $10,000 credit for it, then you will only be charged MVET on the $30,000.

Do some Counties or Cities in New Mexico have a different MVET percentage?

No.  The MVET percentage is the same throughout the State of New Mexico regardless of the County or City where the vehicle was purchased.  Other types of taxes may differ according to location, such as New Mexico Gross Receipts Tax (GRT) which is based on the location where the products or services are delivered, but not the MVET.

Do I have to pay MVET on a vehicle if it was given to me as a gift?

No, a vehicle that is gifted is not considered a sale, therefore, no MVET is due.  However, the applicant must submit a notarized Affidavit of Gift of Motor Vehicle or Boat (Form MVD-10018) where both the “Donor” and “Recipient” affirm under oath and under penalty of perjury that the vehicle was in fact a gift.  For your convenience, In & Out MVD provides Notary Services at every location.

What is a Double or Multiple Title Transfer?

When the previous owner(s) failed to transfer the title into their own name before selling the vehicle to you, this is a “Double” or “Multiple” Title Transfer.  It is important to know that you will be responsible for the MVET on all previous missing Title Transfers (if any), in addition to your Title Transfer.  When this is the scenario, you will need to multiply the purchase price by the total number of transfers, then enter that amount in the “Purchase Price” window for the most accurate estimate.  Feel free to CONTACT US with any questions or additional inquiries.

How much are the registration fees in New Mexico?

The registration fees vary depending on the type of vehicle, trailer, vessel, or unit being registered.  Registration fees for passenger vehicles are based on the weight and model year of the vehicle.  Registration fees commonly range from $27.00 – $62.00 for a one (1) year registration or $54.00 – $124.00 for a two (2) year registration.

Registration fees for trucks with a declared gross vehicle weight (DGVW) of 26,000 pounds or less are also based on the weight and model year of the vehicle.  Registration fees commonly range from $38.00 – $207.00 for a one (1) year registration or $76.00 – $414.00 for a two (2) year registration.

What are the penalty fees for a late Title Transfer?

1. 1. Late registration penalty fee
      
      20. A $20.00 late transfer fee applies if a Title Transfer is processed 30 calendar days after the date of purchase. The penalty also applies when transferring out-of-state titles or MCO’s.
   2. A penalty of 50% of the MVET is imposed on any person who lives in New Mexico and either;

• • accepts transfer of a vehicle in New Mexico but fails to apply for a certificate of title within 90 days,

    or

  • accepts transfer outside the state and fails to apply for a certificate of title within 90 days of bringing the vehicle into New Mexico.

Note:  The 50% add-on penalty has the effect of increasing the tax rate to 6% (4% x 1.5 = 6%)

What if I purchased a vehicle in another state and I already paid taxes there?

If a vehicle is acquired out-of-state, and another state’s gross receipts, sales, compensating, or similar tax was paid, the amount of the tax paid may be credited against the MVET due on the same vehicle.

Are there any exemptions from the MVET on vehicles?

Yes.  The following are exempt from payment of the MVET:

1. 1. A person who acquires a vehicle out of state, and for personal use, at least 30 days before moving to New Mexico.
   2. A person applying for New Mexico title on a vehicle registered in another state, if the person has previously registered and titled the vehicle in New Mexico and has continued to own the vehicle.
   3. The State of New Mexico and any political subdivision of the state.
   4. A person who has a disability at the time the person purchases a vehicle and can prove that modifications have been made to the vehicle that;
      1. are due to the person’s disability; and
      2. are necessary to enable the person to drive or be transported in the vehicle.
   5. A New Mexico resident who served in the armed forces of the United States and who suffered, while serving or from a service-connected cause;
      1. the loss or complete and total loss of use of one or both legs at or above the ankle; or
      2. one or both arms at or above the wrist.
   6. A person who acquires a vehicle for subsequent lease if;
      1. The vehicle is not used other than for lease or sale in the ordinary course of business;
      2. The lease is for more than six months;
      3. The receipts from the subsequent lease are subject to the gross receipts tax; and
      4. The vehicle does not have a GVW of over 26,000 pounds.

MVET on Manufactured Homes (Mobile Homes)

MVET does not apply to Manufactured Homes.  When someone purchases a new Manufactured Home from a dealer, the buyer pays Gross Receipts Tax (GRT).  This tax does not apply thereafter for individual-to-individual re-sales for the same Manufactured Home.  However, if you’ve purchased a Manufactured Home, you must process a Title Transfer & Registration for your mobile home at MVD.  Although MVD does not charge MVET on Manufactured Homes, other MVD fees do apply.  Use our MVD Title & Registration Calculator to get an estimate of these MVD fees.

For additional information on Manufactured Home Title Transfers, please see our Title Transfer & Registration for Manufactured Homes page.

IMPORTANT REMINDERS & DISCLOSURES

• The MVD Title & Registration Calculator provides an ESTIMATE ONLY based on the information you enter.
• MVET policies and rates are subject to change at any time. Please CONTACT US with any questions or additional inquiries.
• Other fees may apply for additional services such as specialty license plates, notary services, necessary affidavits, VIN Inspection if required, etc.
• In & Out MVD is a New Mexico MVD Partner Office and charges a convenience fee for services provided which is not included in the MVD Title & Registration Calculator estimate. This estimate only reflects related NM MVD state fees.