New Mexico Income Tax Calculator

Estimate your New Mexico income tax burden

Updated for 2024 tax year on Feb 16, 2024

What was updated? 2024 federal income tax, state income tax, standard deduction & exemption
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New Mexico state taxes

Quick New Mexico tax facts

  • State income tax: 1.7% to 5.9%
  • State sales tax: 5.125%
  • Property tax: Less than 1%
  • Gas tax: 17 cents per gallon
  • Tobacco tax: $2.00 per pack of 20 cigarettes
  • Insurance premium tax: 3.003%
New Mexico United States

From Wikipedia

New Mexico income taxes

New Mexico’s income tax system consists of five tax brackets, ranging from 1.7% to 5.9%. The tax rate applied depends on income level and filing status.

There is no state payroll tax in New Mexico. However, employers are responsible for federal payroll taxes.

As of the latest data, New Mexico uses federal guidelines for determining the standard deduction. This amount can vary yearly based on inflation. The state also allows for personal exemptions, which can further lower your tax burden.

Calculate your income tax in New Mexico

Calculating your New Mexico state income tax is similar to the steps we listed on our Federal income tax calculator:

  1. Determine your filing status
  2. Work out your adjusted gross income [Gross income − Retirement contributions = Adjusted gross income]
  3. Calculate your state taxable income [Adjusted gross income − (Standard/Itemized deductions + Exemptions) = State taxable income]
  4. Figure out your state/local tax liability [State taxable income × State tax rate = State tax liability]

State income tax brackets

Each filer type has different progressive tax rates. Refer to Tax Foundation for more details.

Tax year Filing status Taxable income Rate
2023
2022
2021
Single $0 – $5,500 1.70%
$5,500 – $11,000 3.20%
$11,000 – $16,000 4.70%
$16,000 – $210,000 4.90%
$210,000+ 5.90%
Married, Filing Jointly or Widow(er)
Head of Household
$0 – $8,000 1.70%
$8,000 – $16,000 3.20%
$16,000 – $24,000 4.70%
$24,000 – $315,000 4.90%
$315,000+ 5.90%
Married, Filing Separately $0 – $4,000 1.70%
$4,000 – $8,000 3.20%
$8,000 – $12,000 4.70%
$12,000 – $157,500 4.90%
$157,500+ 5.90%
2020 Single $0 – $5,500 1.70%
$5,500 – $11,000 3.20%
$11,000 – $16,000 4.70%
$16,000+ 4.90%
Married, Filing Jointly or Widow(er)
Head of Household
$0 – $8,000 1.70%
$8,000 – $16,000 3.20%
$16,000 – $24,000 4.70%
$24,000+ 4.90%
Married, Filing Separately $0 – $4,000 1.70%
$4,000 – $8,000 3.20%
$8,000 – $12,000 4.70%
$12,000+ 4.90%

State standard deduction

Tax year Filing status Standard deduction amount
2023 Single
Married, Filing Separately
$13,850
Married, Filing Jointly $27,700
Head of Household $20,800
2022 Single
Married, Filing Separately
$12,950
Married, Filing Jointly $25,900
Head of Household $19,400
2021 Single
Married, Filing Separately
$12,550
Married, Filing Jointly $25,100
Head of Household $18,800
2020 Single
Married, Filing Separately
$12,200
Married, Filing Jointly $24,400
Head of Household $18,350

State exemptions

There is state-level exemptions for all type of filers and dependents. Refer to Tax Foundation for more details.

Tax year Filing status Personal exemption amount
2023
2022
2021
Dependent(s) $4,000
2020 Dependent(s) $4,050

New Mexico sales tax

New Mexico has a unique form of sales tax known as a gross receipts tax. This tax, applied on businesses, often gets passed on to consumers. The state rate is 5.125%, but when combined with local surtaxes, the total can reach as high as 8.8675%.

New Mexico property tax

Property tax rates in New Mexico vary by county, but are generally less than 1% of the assessed value of the property

New Mexico capital gains tax

New Mexico follows federal guidelines for capital gains tax. However, the state provides a deduction of 50% of the net capital gains included in federal adjusted gross income.

New Mexico gas tax

The state of New Mexico imposes a gas tax of 17 cents per gallon.

New Mexico tobacco tax

The tobacco tax in New Mexico is $2.00 per pack of 20 cigarettes.

New Mexico insurance tax

The insurance premium tax in New Mexico is 3.003%, imposed on the gross amount of insurance premiums received.

FAQs

How do I calculate my New Mexico income tax?

Calculate your New Mexico state income tax with the following six steps.

  1. Determine your filing status
  2. Gross income − Retirement contributions = Adjusted gross income
  3. Adjusted gross income − (Standard/Itemized deductions + Exemptions) = State taxable income
  4. State taxable income × State tax rate = State tax liability

How much is $47000 a year after taxes in New Mexico?

A New Mexican will take home $38,301.65 with a $8,698.35 income tax.