New Mexico Paycheck Calculator
Calculate your take-home pay per paycheck for salary and hourly jobs after federal & New Mexico taxes
Updated for 2024 tax year on Jul 06, 2024
Calculate your paycheck in these states
How to calculate your New Mexico paycheck
Table of Contents
Overview of New Mexico
New Mexico has a population of over 2 million (2019). Oil drilling, mineral extraction, tourism, and federal government spending are drivers of the state economy. The median household income is $46,744 (2017).
Brief summary:
- the income tax rate ranges from 1.7% to 5.9%
- no state-level payroll tax
- has standard deductions and exemptions
Understanding your New Mexico paycheck
Understanding the ins and outs of your New Mexico paycheck can sometimes feel like decoding an ancient language. Let’s decode the elements of your paycheck including federal income taxes, FICA taxes, pre-tax deductions, and more.
Like every other state, residents of New Mexico are subjected to federal income taxes and FICA taxes. The Federal Insurance Contributions Act (FICA) comprises Social Security and Medicare taxes, to which employees and employers contribute equally.
The FICA taxes are combined under the Self-Employment Contributions Act (SECA) for self-employed individuals. Although SECA taxes may seem higher than FICA taxes, self-employed workers can deduct the employer-equivalent portion of SECA taxes when filing their federal income tax returns.
Your Form W-4 determines the amount of federal income tax withheld from your paycheck. It’s important to keep this form up-to-date whenever you experience significant life changes. Your pay frequency (weekly, bi-weekly, semi-monthly, or monthly) also affects your paycheck’s deductions.
Your marital status plays a significant role in your tax liability. Married individuals typically have lower tax rates. To lower your taxable income further, you can contribute to a 401(k) or a flexible spending account. These contributions are known as pre-tax deductions.
New Mexico levies a progressive state income tax ranging from 1.7% to 5.9%. The state does not impose any payroll taxes, which can provide a bit of relief to your wallet.
New Mexico taxpayers can claim a standard deduction, which reduces your taxable income. The state also allows for personal exemptions, further lowering the amount of income subject to state income tax.
Finally, post-tax deductions are those taken out of your paycheck after taxes have been withheld. These may include charitable donations, wage garnishments, or voluntary contributions to specific programs.
Calculate your New Mexico paycheck
Calculating your New Mexico state income tax is similar to the steps we listed on our main paycheck calculator page:
- Determine your gross income
- Annual salary
Annual salary = Gross income - Hourly wage
Hourly wage × Hours worked per day × Days worked per week × Weeks worked per year = Your weekly paycheck
- Annual salary
- Work out your total federal income tax
- Gross income adjusted
Gross income − Pre-tax deductions = Gross income adjusted - Federal taxable income
Gross income adjusted − Federal standard/itemized deductions = Federal taxable income - Federal income tax liability
Federal taxable income × Federal income tax rate = Federal income tax liability - Federal payroll tax liability
Gross income adjusted × Federal payroll tax rate = Federal payroll tax liability
- Gross income adjusted
- Calculate your total New Mexico state income tax
- State taxable income
Gross income adjusted − (State standard/itemized deductions + State exemptions) = State taxable income - State income tax liability
State taxable income × State income tax rate = State income tax liability
- State taxable income
- Figure out your net pay
You need to account for any other deductions such as health insurance, 401(k) contribution, as well as additional withholdings.
Gross income − (Total income tax liability + Total payroll tax liability + Total pre-tax deductions + Total post-tax deductions + Total withholdings) = Your net pay - Divide your net pay by your pay frequency
- Daily
Your net pay / Days worked per week / Weeks worked per year = Your daily paycheck - Weekly
Your net pay / 52 = Your weekly paycheck - Bi-weekly
Your net pay / 26 = Your bi-weekly paycheck - Semi-monthly
Your net pay / 24 = Your semi-monthly paycheck - Monthly
Your net pay / 12 = Your monthly paycheck - Quarterly
Your net pay / 4 = Your quarterly paycheck - Semi-annual
Your net pay / 2 = Your semi-annual paycheck - Annual
Your net pay = Your annual paycheck
- Daily
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 |
|---|---|---|---|
| 2024 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 |
|---|---|---|
| 2024 | Single Married, Filing Separately |
$14,600 |
| Married, Filing Jointly | $29,200 | |
| Head of Household | $21,900 | |
| 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 are state-level exemptions for all types of filers and dependents. Refer to Tax Foundation for more details.
| Tax year | Filing status | Personal exemption amount |
|---|---|---|
| 2024 2023 2022 2021 |
Dependent(s) | $4,000 |
| 2020 | Dependent(s) | $4,050 |
FAQs
How to calculate take home pay in New Mexico?
Follow the steps below to work out your take-home pay:
- Determine your gross income
- Work out your total federal income tax
- Calculate your total New Mexico state income tax
- Gross income minus taxes, deductions and withholdings
- Divide your net pay by your pay frequency
How much will New Mexico tax paychecks in 2024?
New Mexico will tax paychecks between 1.7% and 5.9%, based on your income bracket.
How much is taken out of my paycheck in New Mexico?
In New Mexico, your paycheck deductions typically consist of federal income tax, state income tax, Social Security and Medicare. The final amount taken out of your paycheck might be affected by insurance premiums and retirement contributions.
What percentage of my paycheck goes to taxes in New Mexico?
The taxes on your paycheck include
- federal income tax (10% to 37%)
- state income tax (1.7% to 5.9%)
- Social Security (6.2%)
- Medicare (1.45% to 2.35%)