New Mexico Tax Calculators.
Tax year 2026 income tax rates, brackets, and sales tax for New Mexico. Returns for tax year 2026 are generally filed in 2027; source links and last-verified dates are shown below.Tax year 2026 means income earned during calendar year 2026; those returns are generally filed in 2027. State and local sales tax rates can change during the year, so confirm current rules before filing or remitting tax.
Income Tax
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.
| Taxable Income | Rate |
|---|---|
| $0 - $5,500 | 1.5% |
| $5,500 - $16,500 | 3.2% |
| $16,500 - $33,500 | 4.3% |
| $33,500 - $66,500 | 4.7% |
| $66,500 - $210,000 | 4.9% |
| Over $210,000 | 5.9% |
Sales Tax
Receipts from qualifying food for home consumption sold by eligible retail food stores are deductible from gross receipts tax. Receipts from qualifying prescription drug sales are also deductible. The GRT applies to many services that traditional sales taxes do not cover. Combined rates shown are population-weighted July 1, 2026 estimates; actual item and local rates vary.
New Mexico’s top marginal income-tax rate is 5.9%. Its gross receipts tax applies more broadly than traditional sales taxes, with item- and seller-specific deductions; no effective tax burden on services is calculated.
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.
What is New Mexico's gross receipts tax?
New Mexico levies gross receipts tax on businesses rather than a traditional retail sales tax. The general state base is 4.875%, with local taxes added. The combined rate averaged 7.68% in the July 1, 2026 table and varies by location.
Does New Mexico tax groceries?
Receipts from qualifying food for home consumption sold by eligible retail food stores are deductible from New Mexico gross receipts tax. The retail-food deduction took effect on January 1, 2005; it did not begin in 2023. Prepared hot foods, alcohol and other nonqualifying sales have different treatment.
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