New Mexico Income Tax Calculator
Estimate your New Mexico income tax burden
Updated for 2023 tax year on Jul 18, 2023
Income tax calculators by state
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%
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:
- Determine your filing status
- Work out your adjusted gross income [Gross income − Retirement contributions = Adjusted gross income]
- Calculate your state taxable income [Adjusted gross income − (Standard/Itemized deductions + Exemptions) = State taxable income]
- 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.
- Determine your filing status
- Gross income − Retirement contributions = Adjusted gross income
- Adjusted gross income − (Standard/Itemized deductions + Exemptions) = State taxable income
- 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.