New Mexico Paycheck Calculator

Calculate your take-home pay after federal & New Mexico taxes

Updated for 2024 tax year on Feb 14, 2024

What was updated? 2024 federal income tax, FICA & standard deduction

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Paycheck calculator for New Mexico

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
New Mexico United States

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 Federal paycheck calculator:

  1. 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
  2. Work out your total federal income tax
    1. Gross income adjusted
      Gross income − Pre-tax deductions = Gross income adjusted
    2. Federal taxable income
      Gross income adjusted − Federal standard/itemized deductions = Federal taxable income
    3. Federal income tax liability
      Federal taxable income × Federal income tax rate = Federal income tax liability
    4. Federal payroll tax liability
      Gross income adjusted × Federal payroll tax rate = Federal payroll tax liability
  3. Calculate your total New Mexico state income tax
    1. State taxable income
      Gross income adjusted − (State standard/itemized deductions + State exemptions) = State taxable income
    2. State income tax liability
      State taxable income × State income tax rate = State income tax liability
  4. Figure out your net pay
    Gross income − (Total income tax liability + Total payroll tax liability + Total pre-tax deductions + Total post-tax deductions + Total withholdings) = Your net pay
  5. 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

State payroll tax

There is no state-level payroll tax.

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 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
2023
2022
2021
Dependent(s) $4,000
2020 Dependent(s) $4,050

FAQs

What taxes do New Mexicans pay?

On top of the federal income tax, the income tax rate in New Mexico ranges from 1.7% to 5.9%. There is no state-level payroll tax.

How much do you make after taxes in New Mexico?

A single filer will take home $38,301.65 if he earns an annual wage of $47,000.
The take-home pay of a married couple with a combined income of $94,000 is $76,452.30.

How much taxes are deducted from a $47,000 paycheck in New Mexico?

The total taxes deducted for a single filer are $724.87 monthly or $334.55 bi-weekly.