Tax Year 2023 New Mexico Income Tax Brackets
| Tax Bracket | Tax Rate |
|---|---|
| $0.00+ | 1.7% |
| $5,500.00+ | 3.2% |
| $11,000.00+ | 4.7% |
| $16,000.00+ | 4.9% |
| $210,000.00+ | 5.9% |
| Tax Bracket | Tax Rate |
|---|---|
| $0.00+ | 1.7% |
| $8,000.00+ | 3.2% |
| $16,000.00+ | 4.7% |
| $24,000.00+ | 4.9% |
| $315,000.00+ | 5.9% |
Both New Mexico's tax brackets and the associated tax rates were last changed four years ago in 2020.
New Mexico has five marginal tax brackets, ranging from 1.7% (the lowest New Mexico tax bracket) to 5.9% (the highest New Mexico tax bracket). Each marginal rate only applies to earnings within the applicable marginal tax bracket .
In New Mexico, different tax brackets are applicable to different filing types. Married couples filing their New Mexico income tax return jointly will usually have wider tax brackets than those filing separately or as an individual.
How do New Mexico tax brackets work?
Technically, you don't have just one "tax bracket" - you pay all of the New Mexico marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. For comparison purposes, however, your New Mexico tax bracket is the tax bracket in which your last earned dollar in any given tax period falls.
You can think of the bracketed income tax as a flat amount for all of the money you earned up to your highest tax bracket, plus a marginal percentage of any amount you earned over that. The chart below breaks down the New Mexico tax brackets using this model:
| For earnings between $0.00 and $5,500.00, you'll pay 1.7% |
| For earnings between $5,500.00 and $11,000.00, you'll pay 3.2% plus $93.50 |
| For earnings between $11,000.00 and $16,000.00, you'll pay 4.7% plus $269.50 |
| For earnings between $16,000.00 and $210,000.00, you'll pay 4.9% plus $504.50 |
| For earnings over $210,000.00, you'll pay 5.9% plus $10,010.50 |
| For earnings between $0.00 and $8,000.00, you'll pay 1.7% |
| For earnings between $8,000.00 and $16,000.00, you'll pay 3.2% plus $136.00 |
| For earnings between $16,000.00 and $24,000.00, you'll pay 4.7% plus $392.00 |
| For earnings between $24,000.00 and $315,000.00, you'll pay 4.9% plus $768.00 |
| For earnings over $315,000.00, you'll pay 5.9% plus $15,027.00 |
New Mexico Income Tax Calculator
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You can use the income tax estimator to the left to calculate your approximate New Mexico and Federal income tax based on the most recent tax brackets.
Keep in mind that this estimator assumes all income is from wages, assumes the standard deduction, and does not account for tax credits.
For a more detailed estimate that takes these factors into account, click "View Detailed Estimate" (this will will redirect to an external website).
New Mexico Tax Deductions
When calculating your New Mexico income tax, keep in mind that the New Mexico state income tax brackets are only applied to your adjusted gross income (AGI) after you have made any qualifying deductions.
Qualifying deductions might include an itemized deduction, the New Mexico standard deduction, exemptions for dependants, business expenses, etc.
Remember that New Mexico may have very different deduction laws from the Federal Income Tax, so you may have to write a whole new list of deductions for your New Mexico income tax return.
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Download or print New Mexico income tax forms
NM income tax forms are available as PDFsNew Mexico Standard Deductions & Personal Exemption Amounts
In addition to marginal tax brackets, one of the major features of the New Mexico income tax is deductions. The three most common deductions encountered by taxpayers are the New Mexico Standard Deduction, the New Mexico Personal Exemption, and the New Mexico Dependent Deduction. The current values of these deductions for tax year 2024 are as follows:
| Standard Deduction (Single) | Standard Deduction (MFJ) | Personal Exemption | Dependant Exemption |
|---|---|---|---|
| $14,600.00 | $29,200.00 | $0.00 | $4,000.00 |
The standard deduction, which New Mexico has, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction. Essentially, it translates to $14,600.00 per year of tax-free income for single New Mexico taxpayers, and $29,200.00 for those filing jointly.
The Personal Exemption, which is not supported by the New Mexico income tax, is an additional deduction you can take if you (and not someone else) are primarily responsible for your own living expenses. Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support.
The Federal income tax also has a standard deduction, personal exemptions, and dependant deductions, though they are different amounts than New Mexico's and may have different rules.
Head over to the Federal income tax brackets page to learn about the Federal Income Tax, which applies in all states nationwide.
Sources & Citations
Disclaimer: While we do our best to keep this list of New Mexico income tax rates up to date and complete, we cannot be held liable for errors or omissions. Is info on this page missing or out-of-date? Please let us know so we can fix it!
The New Mexico tax brackets on this page have been updated for tax year 2024, and are the latest brackets available. States often adjust their tax brackets on a yearly basis, so make sure to check back later for New Mexico's updated tax year 2025 tax brackets!
Tax Data Sources:
- The New Mexico tax brackets on this page were last updated from the New Mexico Taxation and Revenue Department in 2024. Please contact us if any of our New Mexico tax data is incorrect or out of date.
- New Mexico tax return forms are available on the New Mexico tax forms page or the New Mexico Department of Revenue.
- Before the official 2024 New Mexico income tax brackets are released, the brackets used on this page are an estimate based on the previous year's brackets. These numbers are subject to change if new New Mexico tax tables are released.
- The New Mexico income tax estimator tool is provided by Tax-Rates.org .