New Mexico contractor licenses: what the state licenses and what it leaves alone

New Mexico is easier to read than most states because one office does most of the work. The Construction Industries Division (CID), part of the Regulation and Licensing Department, licenses the construction trades. Other agencies license pesticide work and home inspection. Everything else is left to cities, counties and the tax office. This page sorts the trades into those buckets. It is general information as of October 2026, so confirm each step with the agency named before you bid.

If you are still choosing a structure, our New Mexico startup page covers the LLC filing, workers' comp and gross receipts tax. For the national picture, see how to get a contractor license and the licensing boards by state.

What does the Construction Industries Division license?

CID licenses anyone who acts as a contractor under the Construction Industries Licensing Act. The licensing rule, 14.6.3 NMAC, says an entity must be issued a license before it acts as a contractor. Licenses go to business entities that employ or are owned by a qualifying party, who must be at least 18, and a business whose majority owner is 17 or younger is not eligible. If your qualifying party leaves, you and the party must tell CID in writing within 30 days.

The same rule sets a $10,000 bond at initial licensing and at renewal, with coverage for the full license period. To qualify, the party documents four years of experience in the ten years before applying (approved technical training can stand in for part of it, at half value), then passes the trade exam. The passing score is 75 percent. CID can waive its own written trade exam for a party who passed a listed NASCLA exam in general construction or electrical.

Classifications live in 14.6.6 NMAC. Here are the ones home-service owners ask about, with the experience each lists. Rules are amended from time to time, and CID noticed a rule hearing on its classifications in 2026, so check the current text.

Two limits matter in practice. A prime contractor may bid only when the major portion of the work, by dollar amount, falls inside its classification, and other work goes to a licensed subcontractor. Work outside your scope is a violation and grounds for discipline. Journeyman certificates exist too, such as EE-98J for electricians.

How does the $7,200 handyman declaration work?

14.6.2.8 NMAC lets an individual do casual, minor or inconsequential work without a CID license if every condition is met. The work is one project at a time, and total compensation stays at or under $7,200 a year. It cannot be part of a larger operation. The individual cannot advertise or keep a sign, card or other device that suggests he or she is qualified to engage in contracting. And the individual files an annual declaration with CID, on its form, saying he or she is not a contractor within the meaning of the Act.

The exemption never reaches installing, connecting or repairing electrical wiring, plumbing or gas fitting. For a business that markets itself as a handyman service, the advertising condition is the sharp edge. A website with a "licensed contractor" claim, or one that offers remodeling, does not fit a declaration. Our handyman startup guide covers how to keep the scope small and still earn a living.

Electrical, plumbing and HVAC work

These are the trades CID guards hardest. Plumbing, gas fitting and HVAC fall under the mechanical (MM) classifications, which require four years of experience, and electrical work under the EE, ER and ES groups. CID's reciprocity page says the only journeyman classification New Mexico reciprocates is EE-98J, accepted from Alaska, Arkansas, Colorado, Idaho, Montana, Nebraska, Oklahoma, South Dakota, Texas and Wyoming. Apply with the certificate application, a copy of the out-of-state license and $75 paid to the exam vendor PSI. Every other classification needs a New Mexico exam path.

Our guides on becoming a licensed electrician and becoming a licensed plumber walk through the national version of those steps.

Pesticides, termites and home inspection

The Department of Agriculture licenses anyone who applies any pesticide for hire, and that includes general-use weed and insect products on lawns. A commercial applicator documents two years of application experience (or 20 college hours in biological or agricultural science plus one year), passes the National Core exam and at least one category exam, shows proof of financial responsibility, and pays a $100 license fee. The department's page lists $25,000 each aggregate for bodily injury and property damage on ground applications. You have 60 days from applying to finish every step or you start over.

Employees who apply pesticides need an operator/technician license, which costs $75, requires exams on general pesticide information and New Mexico law, and must be acknowledged by the employer. An operator/technician may only do the types of control the employer is certified for. Termite and other wood-destroying pest work is category 7D, which adds one year of specific experience and four hours of approved training before the exam. Anyone who conducts wood-destroying pest inspections must hold Category 7D certification as a commercial applicator, termite technician or pest management consultant. See our pest control license guide for the general route.

Home inspection is licensed by its own board, not CID. The Regulation and Licensing Department states that it is illegal in New Mexico to inspect real estate without a license issued by the board.

What has no state license, and what do you still need?

14.6.6 NMAC, as read in October 2026, has no named classification for painting, landscaping or locksmith work. It does keep a catch-all, GS-29, for work not otherwise listed, issued case by case, so ask CID how your specific scope is treated. Mowing, cleaning, pressure washing and junk hauling are not construction classifications either. If a landscaping job includes a sprinkler system, though, the MS-6 classification applies to the irrigation piece. If a painting job disturbs paint in a home built before 1978, the federal EPA lead-safe rule applies to paid work, including to sole proprietors, and requires a certified firm.

Unlicensed trades still have obligations. Anyone who engages in business in New Mexico must register with the Taxation and Revenue Department, and there is no fee to register or to get a Business Tax Identification Number. The gross receipts tax applies to performing services. Workers' comp is required with three or more workers, counting a working owner, and for any employer that needs a CID license regardless of headcount. Your city or county may add a business registration or permit.

What happens if you work unlicensed?

CID can stop a project and file a criminal charge of unlicensed contracting in magistrate or metropolitan court. The Regulation and Licensing Department lists the penalty under Section 60-13-52.A. If the contracting work is $5,000 or less, the court may impose up to 90 days in county jail, a fine of $300 to $500, or both. Above $5,000, the court may impose up to six months in jail, a fine of 10 percent of the value of the work, or both. A violator becomes eligible for a license one year after the date of conviction.

The state's rule also bears on your website. Under the handyman condition, advertising yourself as a contractor without a license puts the exemption at risk. If you hold a CID license, say so accurately and match the classifications on your pages to the ones CID issued. When you build a site around licensed trades, our website service starts with that kind of fact check.

Check before you bid

Call CID at the Santa Fe (505) 476-4700, Albuquerque (505) 222-9800 or Las Cruces (575) 524-6320 office, or verify a license through the vendor database CID links. Rules change, and this is general information, not legal advice. Confirm with the agency before you act.

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