New Mexico state income tax rates and calculator
New Mexico collects state income tax across five tax brackets ranging from 1.7 percent to 5.9 percent for income earned in 2024 and reported on tax returns filed in 2025.
However, the state restructured its individual income tax brackets effective for tax year 2025, with the aim of lowering taxes for lower- and middle-income taxpayers.
New Mexico personal income tax rates for 2024
New Mexico uses a graduated-rate table similar to the federal tax system. The state has five brackets for the 2024 tax year, ranging from 1.7 percent to 5.9 percent.
In a graduated-rate, or progressive, tax system, your marginal tax rate is the top rate you pay, but your effective, or actual, tax rate is a blend of tax rates, and is generally lower than your marginal rate.
For example, a single filer in New Mexico with $40,000 in taxable income in 2024 will pay a 1.7 percent tax rate on their first $5,500 of income, then a 3.2 percent tax rate on income from $5,500 to $11,000, then a 4.7 percent rate on income from $11,000 to $16,000, and finally a 4.9 percent rate on income from $16,000 to $40,000. To calculate their tax bill, the taxpayer must calculate their tax for each bracket and then add the totals. Read more about marginal vs. effective tax rates.
The following tax rates apply for any year after 2021, including 2024. The rates will change for tax year 2025.
| New Mexico personal income tax rates for 2024 | ||||
| Tax rate | Single | Married filing jointly | Head of household | Married filing separately |
| 1.7% | $0 to $5,500 | $0 to $8,000 | $0 to $8,000 | $0 to $4,000 |
| 3.2% | $5,500 to $11,000 | $8,000 to $16,000 | $21,512 to $50,998 | $4,000 to $8,000 |
| 4.7% | $11,000 to $16,000 | $16,000 to $24,000 | $16,000 to $24,000 | $8,000 to $12,000 |
| 4.9% | $16,000 to $210,000 | $24,000 to $315,000 | $24,000 to $315,0002 | $12,000 to $157,500 |
| 5.9% | $210,000+ | $315,000+ | $315,000+ | $157,500+ |
Who has to file New Mexico state taxes?
If you’re a New Mexico resident and you’re required to file a federal tax return, then New Mexico requires you to file a state tax return. Similarly, if you’re a state resident and you want to claim a tax refund or any state rebates or tax credits, you must file a state return.
Nonresidents who must file a federal return and who have income from any New Mexico sources — from doing business in the state, being employed in the state or deriving income from property in the state — must also file a state income tax return. Read more about New Mexico filing requirements.
Is there a personal exemption or standard deduction in New Mexico?
New Mexico offers a standard deduction that matches the federal standard deduction. For example, for the 2024 tax year, taxpayers can claim a standard deduction of $14,600 if they’re single and $29,200 if they’re married filing jointly.
The state also has a “low-and middle-income exemption” that allows some taxpayers to claim a $2,500 exemption as long as their federal adjusted gross income is equal to or less than $36,667 if single, $27,500 if married filing separately or $55,000 if married filing jointly or a head of household.
New Mexico personal exemption and standard deduction for 2024
| Filing status | Personal exemption | Standard deduction |
|---|---|---|
| Single | $2,500 (if income is $36,667 or less) | $14,600 |
| Head of household | $2,500 (if income is $55,000 or less) | $21,900 |
| Married filing jointly | $2,500 (if income is $55,000 or less) | $29,200 |
| Married filing separately | $2,500 (if income is $27,500 or less) | $14,600 |
New Mexico sales tax rate
Instead of a sales tax, New Mexico has a gross receipts tax, which is levied on the seller rather than the consumer. However, in almost all cases, the tax is passed on to the consumer, and therefore resembles a sales tax, according to New Mexico’s Taxation and Revenue Department.
The tax varies from 4.875 percent to 8.9375 percent throughout the state.
Other things to know about New Mexico taxes
- New Mexico’s effective property tax rate is 0.67 percent, on average, on owner-occupied houses, according to the Tax Foundation.
- The state has a gas tax rate of 17 cents per gallon.
- There is also a $2 cigarette excise tax.
- New Mexico doesn’t have an estate or inheritance tax. However, an inheritance may be counted toward a taxpayer’s gross income and therefore subject to personal income tax.