New Mexico State Taxes
Quick Tax Facts
Income Tax: 1.7% – 5.9%
State Sales Tax: 4.875%
Median Property Tax: $880
Overview
New Mexico is known for its warm, dry climate and delicious southwestern cuisine. If you’re looking for natural scenery and endless sunshine, New Mexico has it in droves. In terms of taxes, however, it’s a mixed bag. Income taxes are fairly steep for those earning more than $210,000. Property taxes, on the other hand, are pretty low compared to the rest of the country. If you over 100 years old, there’s an added bonus – you’re exempt from paying any state income taxes.
New Mexico Income Tax
New Mexico has a progressive income tax rate that increases with income and varies based on filing status. The state income tax rates currently range between 1.7% and 5.9%.
| New Mexico Income Tax Rates – Single |
|---|
| If your taxable income is: | Your tax rate is: |
|---|---|
| $0 – $5,500 | 1.7% |
| $5,501 – $11,000 | $93.50 plus 3.2% of excess over $5,500 |
| $11,001 – $16,000 | $269.50 plus 4.7% of excess over $11,000 |
| $16,001 – $210,000 | $504.50 plus 4.9% of excess over $16,000 |
| $210,001 or more | $10,010.50 plus 5.9% of excess over $210,000 |
| New Mexico Income Tax Rates – Head of Household or Married Filing Jointly |
|---|
| If your taxable income is: | Your tax rate is: |
|---|---|
| $0 – $8,000 | 1.7% |
| $8,001 – $16,000 | $136 plus 3.2% of excess over $8,000 |
| $16,001 – $24,000 | $392 plus 4.7% of excess over $16,000 |
| $24,001 – $315,000 | $768 plus 4.9% of excess over $24,000 |
| $315,001 or more | $15,027 plus 5.9% of excess over $315,000 |
| New Mexico Income Tax Rates – Married Filing Separately |
|---|
| If your taxable income is: | Your tax rate is: |
|---|---|
| $0 – $4,000 | 1.7% |
| $4,001 – $8,000 | $68.00 plus 3.2% of excess over $4,000 |
| $8,001 – $12,000 | $196 plus 4.7% of excess over $8,000 |
| $12,001 – $157,500 | $384 plus 4.9% of excess over $12,000 |
| $157,501 or more | $7,513.50 plus 5.9% of excess over $157,500 |
Who Must File?
New Mexico residents must file a state income tax return (PIT-1) if they meet any of the following conditions:
- They are required to file a federal income tax return;
- Want to claim a refund of any New Mexico state income tax withheld from their pay; or
- Plan to claim any New Mexico tax credits or rebates.
Non-residents, including those who live in a state without income taxes, must file a New Mexico income tax return if both of the following are true:
- They are required to file a federal income tax return; and
- They have income from any New Mexico source.
Members of Indian Nations, Tribes, or Pueblos
Indians who work or live on lands outside the Indian nations, tribes, or pueblos of which they are members are subject to New Mexico personal income tax unless both of the following apply:
- They are an enrolled member of an Indian nation, tribe, or pueblo who lived on the lands where they are a member; and
- Their entire income was earned from work on those lands.
New Mexico Sales Tax
New Mexico does not have a sales tax. Instead, it imposes a gross receipts tax. The state gross receipts tax rate is currently 4.875%, but local governments may also levy additional taxes. The gross receipts tax rate varies throughout the state, ranging from 5% to 9.3125%.
New Mexico Property Taxes
New Mexico property taxes are administered and collected by local governments. Property taxes are based on the assessed value of the property and the state requires that it be at 1/3 of the market value. For example, a home with a market value of $240,000 would have an assessed value of $80,000 ($240,000 x 1/3). The state also limits increases in property values to 3% annually.
The median property tax bill in New Mexico is $880 (based on a median home value of $160,900). Bernalillo County has the highest average tax bill at $1,530. The lowest average property tax bill in the state is $255 in Harding County.
| Highest | $1530 |
|---|---|
| Median | $880 |
| Lowest | $255 |
Yearly Cost Per Resident
New Mexico Tax Holidays
New Mexico hosts an annual Gross Receipts Tax Holiday the first weekend in August from 12:01 AM on the first Friday to midnight the following Sunday. The following items are exempt from sales tax during that period:
- Clothing and shoes sold for less than $100
- Computers and tablets sold for $1,000 or less
- Computer accessories (keyboards, monitors, speakers, etc.) valued at $500 or less
- School supplies used for standard classroom purposes (backpacks, calculators, art supplies, paper, writing instruments, etc.)
New Mexico Tax Resources
If you need assistance preparing your New Mexico state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.
You can also visit the New Mexico Taxation & Revenue website for additional resources.
- Make a Payment
- Individual Income Tax Forms
- Where’s My Refund?
- Customer Service: 866-285-2996
