New Mexico income tax at a glance
New Mexico restructured its brackets in 2025, adding a 1.5% bottom rate; the top rate is 5.9%. It uses the federal standard deduction and allows a $4,000 deduction for each dependent after the first. The 4.875% gross receipts tax applies to most services as well as goods.
| Tax structure | 6 brackets, 1.5% – 5.9% |
| Figures for tax year | 2026 |
| Starting point | Federal taxable income |
| Standard deduction (single / joint) | $16,100 / $32,200 |
| Tax on $75,000 (single) | $2,359 (3.15%) |
| Rank at $75,000 | 32nd highest of 42 |
| Local income taxes | None |
| State sales tax | 4.875% |
How New Mexico calculates your income tax
New Mexico starts from your federal taxable income, so the federal standard deduction ($16,100 single, $32,200 joint) is built in. You also get a $4,000 deduction for each dependent after the first.
Tax from the New Mexico brackets = New Mexico income tax
New Mexico income tax brackets (2026)
Married couples filing jointly get their own, wider brackets. Rates apply only to the slice of taxable income inside each bracket.
Single filers
| Rate | Taxable income | Tax owed |
|---|---|---|
| 1.5% | $0 – $5,500 | 1.5% of taxable income |
| 3.2% | $5,501 – $16,500 | $83 + 3.2% over $5,500 |
| 4.3% | $16,501 – $33,500 | $435 + 4.3% over $16,500 |
| 4.7% | $33,501 – $66,500 | $1,166 + 4.7% over $33,500 |
| 4.9% | $66,501 – $210,000 | $2,717 + 4.9% over $66,500 |
| 5.9% | Over $210,000 | $9,748 + 5.9% over $210,000 |
Married filing jointly
| Rate | Taxable income | Tax owed |
|---|---|---|
| 1.5% | $0 – $8,000 | 1.5% of taxable income |
| 3.2% | $8,001 – $25,000 | $120 + 3.2% over $8,000 |
| 4.3% | $25,001 – $50,000 | $664 + 4.3% over $25,000 |
| 4.7% | $50,001 – $100,000 | $1,739 + 4.7% over $50,000 |
| 4.9% | $100,001 – $315,000 | $4,089 + 4.9% over $100,000 |
| 5.9% | Over $315,000 | $14,624 + 5.9% over $315,000 |
Heads of household use the married-filing-jointly brackets in New Mexico.
New Mexico standard deduction and exemptions
| Filing status | Standard deduction | Personal exemption | Per dependent |
|---|---|---|---|
| Single | $16,100 | — | $4,000 (after the first) |
| Married filing jointly | $32,200 | — | $4,000 (after the first) |
| Head of household | $24,150 | — | $4,000 (after the first) |
Amounts before any income-based phase-outs. Because New Mexico starts from federal taxable income, these equal the 2026 federal standard deduction.
New Mexico income tax on $50,000, $75,000 and $100,000
Estimated 2026 tax for W-2 wages with the standard deduction, no children and no pre-tax deductions. Change any of these in the calculator above.
| Wages | Filing status | NM tax | Effective | Federal tax | FICA | Take-home | Monthly |
|---|---|---|---|---|---|---|---|
| $50,000 | Single | $1,184 | 2.37% | $3,820 | $3,825 | $41,171 | $3,431 |
| $50,000 | Married jointly | $434 | 0.87% | $1,780 | $3,825 | $43,961 | $3,663 |
| $75,000 | Single | $2,359 | 3.15% | $7,670 | $5,738 | $59,233 | $4,936 |
| $75,000 | Married jointly | $1,429 | 1.91% | $4,640 | $5,738 | $63,193 | $5,266 |
| $100,000 | Single | $3,569 | 3.57% | $13,170 | $7,650 | $75,611 | $6,301 |
| $100,000 | Married jointly | $2,576 | 2.58% | $7,640 | $7,650 | $82,134 | $6,845 |
Step by step: $75,000 single filer in New Mexico
- Gross wages: $75,000
- Standard deduction: −$16,100
- New Mexico taxable income: $58,900
- 1.5% on $5,500 = $82.50
- 3.2% on $11,000 = $352.00
- 4.3% on $17,000 = $731.00
- 4.7% on $25,400 = $1,193.80
- New Mexico income tax: $2,359 — 3.15% of gross pay, with a marginal state rate of 4.7%.
- With $7,670 of federal income tax and $5,738 of FICA, total tax is $15,767 and take-home pay is about $59,233 ($2,278 every two weeks).
Local income taxes in New Mexico
No local income taxes.
Sales tax and other New Mexico taxes
The New Mexico state sales tax rate is 4.875%, and local governments may add their own rates on top. Spending $30,000 a year on taxable goods would cost roughly $1,463 in state sales tax alone.
Compare New Mexico with neighboring states
State income tax on $75,000 of wages for a single filer in New Mexico and its neighbors. Moving to Texas would cut state income tax on this salary by about $2,359 a year, while Utah would cost about $750 more.
| State | Type | Top rate | Tax on $75k | vs NM |
|---|---|---|---|---|
| New Mexico | Graduated | 5.9% | $2,359 | — |
| Arizona | Flat | 2.5% | $1,473 | −$887 |
| Utah | Flat | 4.45% | $3,110 | +$750 |
| Colorado | Flat | 4.4% | $2,592 | +$232 |
| Oklahoma | Graduated | 4.5% | $2,830 | +$470 |
| Texas | No income tax | — | $0 | −$2,359 |
If you live in one of these states and work in another, you generally file a non-resident return in the work state and claim a credit at home for the tax paid.
How to lower your New Mexico income tax
- Pre-tax retirement savings. Putting $10,000 into a traditional 401(k) on a $75,000 salary cuts New Mexico tax by about $470 on top of the federal savings.
- Claim state credits. Check the New Mexico return for earned-income, child, education and renter or property-tax credits that this estimate doesn’t include.
- Watch residency and work location. Days worked in another state and the date you move in or out change how much each state can tax.
- Time large income. Bonuses, stock sales and Roth conversions all land on your state return too.
See all states side by side in the state income tax calculator, or check the federal side with the federal income tax calculator and your per-check withholding in the paycheck calculator.
Sources and updates
Rates, brackets and deductions are for tax year 2026. Source: official New Mexico tax agency page, cross-checked with the Tax Foundation’s 2026 state income tax tables and 2026 state legislation. Data last reviewed November 4, 2026.
New Mexico income tax FAQ
What is the New Mexico state income tax rate?
New Mexico has 6 brackets ranging from 1.5% to 5.9% (figures for 2026). The top rate starts at $210,000 of taxable income for single filers. A single filer earning $75,000 pays an effective rate of about 3.15%.
How much New Mexico income tax do I pay on $75,000?
About $2,359 for a single filer and $1,429 for a married couple filing jointly, using the standard deduction. Including federal income tax and FICA, a single filer takes home about $59,233 a year.
What is the New Mexico standard deduction?
You also get a $4,000 deduction for each dependent after the first.
Does New Mexico have local income taxes?
No local income taxes.
Is New Mexico a high-tax state?
On a $75,000 salary New Mexico ranks 32 of the 42 jurisdictions that tax wages (1 = highest), among the lowest. Among its neighbors, Texas is cheapest at $0.