New Mexico Tax Calculators.
2025 income tax rates, brackets, and sales tax for New Mexico. Free calculators with New Mexico-specific defaults.Income Tax
New Mexico has a progressive income tax with 5 brackets ranging from 1.7% to 5.9%. The state uses a gross receipts tax (GRT) instead of a traditional sales tax, which applies more broadly to services.
| Taxable Income | Rate |
|---|---|
| $0 - $5,500 | 1.7% |
| $5,500 - $11,000 | 3.2% |
| $11,000 - $16,000 | 4.7% |
| $16,000 - $210,000 | 4.9% |
| Over $210,000 | 5.9% |
Sales Tax
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.
What is New Mexico's income tax rate?
New Mexico has 5 income tax brackets with rates from 1.7% to 5.9%. The top rate applies to income over $210,000 for single filers.
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 7.72%.
Does New Mexico tax groceries?
No, groceries (unprepared food) have been exempt from New Mexico's gross receipts tax since 2023.