New Mexico State Income Tax Calculator
Calculate your 2026 New Mexico state income tax. See your bracket breakdown, effective rate, and how New Mexico compares to neighboring states.
Your Tax Inputs
New Mexico uses the six-rate schedule enacted by HB 252 for 2025 onward: 1.5%, 3.2%, 4.3%, 4.7%, 4.9% and 5.9%. The ordinary 2026 basic deduction references are $16,100 single, $32,200 joint and $24,150 head of household; special cases require the reviewed allowed amount. An eligible nonclaimable joint or head-of-household filer can deduct $4,000 for each eligible dependent beyond the first. The low/middle-income exemption uses separate federal AGI and a reviewed federal-equivalent exemption count. Other deductions exclude both of these amounts. Review all allowed credits separately. Payments, withholding and final-return rounding are not modeled.
New Mexico Legislature — HB 252, Section 5 rates · New Mexico Governor — HB 252 partial-veto scope · New Mexico TRD — low/middle-income and dependent deductions · New Mexico TRD — federal deduction context, HB 93 analysisThe annual amount is gross income minus entered pre-tax deductions and modeled federal and state income tax. Monthly and weekly amounts divide it by 12 and 52. These allocations exclude Social Security and Medicare (FICA), local taxes, other payroll taxes, and unmodeled paycheck deductions. They do not estimate paycheck take-home or actual withholding.
Effective State Income Tax Rate vs Neighboring States
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About New Mexico state taxes (Tax year 2026)
New Mexico uses the six-rate schedule enacted by HB 252 for 2025 onward: 1.5%, 3.2%, 4.3%, 4.7%, 4.9% and 5.9%. The ordinary 2026 basic deduction references are $16,100 single, $32,200 joint and $24,150 head of household; special cases require the reviewed allowed amount. An eligible nonclaimable joint or head-of-household filer can deduct $4,000 for each eligible dependent beyond the first. The low/middle-income exemption uses separate federal AGI and a reviewed federal-equivalent exemption count. Other deductions exclude both of these amounts. Review all allowed credits separately. Payments, withholding and final-return rounding are not modeled.
Groceries are exempt from gross receipts tax. Prescription drugs are exempt. The GRT applies to many services that traditional sales taxes do not cover.
New Mexico's top rate of 5.9% is above the national average. Its gross receipts tax applies more broadly than traditional sales taxes, increasing the effective tax on services.
Filing in New Mexico: returns for tax year 2026 are administered by the New Mexico Taxation and Revenue Department and are generally filed in 2027 by the federal April deadline unless New Mexico declares a state-specific extension. Tax type on this return: Progressive. Top marginal rate: 5.9%. State sales-tax rate: 4.875%. For the most current contact info, see the Federation of Tax Administrators directory.
New Mexico — What is New Mexico's income tax rate? New Mexico’s six 2026 state rates are 1.5%, 3.2%, 4.3%, 4.7%, 4.9% and 5.9%. The joint/head-of-household schedule differs from the single schedule. The state income basis, deductions, exemptions and allowed credits require review.
New Mexico — What is New Mexico's gross receipts tax? Instead of a traditional sales tax, New Mexico levies a gross receipts tax (GRT) on businesses. The state rate is 5.0%, but with local add-ons, combined rates average 7.68%.
New Mexico — Does New Mexico tax groceries? No, groceries (unprepared food) have been exempt from New Mexico's gross receipts tax since 2023.
How this page is reviewed
See methodology, assumptions & sources
| Risk tier | High YMYL |
|---|---|
| Author | Calculover Editorial Team Tax education |
| Editorial owner | Calculover Tax & Payroll Desk State-tax methodology owner |
| Reviewer | Calculover Editorial Review Government-source and limitation review |
| Last reviewed | 2026-11-06 |
| Last verified | 2026-11-06 |
| Data effective date | 2026-01-01 |
| Jurisdiction | New Mexico |
Methodology
These pages estimate annual state income tax for the selected 2026 jurisdiction and filing status. The route's coverage panel identifies the supported income basis, deductions, credits and exclusions.
Assumptions
- Enter the income basis and eligible pre-tax deductions requested by the calculator; gross wages, federal AGI and state AGI are not interchangeable.
- Some methods require confirmed state facts or explicit projection assumptions. An unavailable component is not zero tax.
Limitations
- The estimate excludes unmodeled income, adjustments, local taxes and special filing situations. Utah's indexed-credit assumptions remain provisional while final 2026 instructions are pending.
- Annual liability differs from withholding and paycheck take-home. Confirm the current official forms and source versions for a complete return.
Sources
- State Tax Rates, Federation of Tax Administrators
- State Individual Income Tax Rates and Brackets, Tax Foundation
- State Government Resources, Internal Revenue Service
Professional guidance: This page is for state-tax education only and is not tax, legal, financial, or investment advice. State tax decisions and multi-state filing should be reviewed with a CPA or enrolled agent licensed in the relevant states.