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New Mexico Paycheck Calculator

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Use SmartAsset's paycheck calculator to calculate your take home pay per paycheck for both salary and hourly jobs after taking into account federal, state, and local taxes.

Overview of New Mexico Taxes

New Mexico has a progressive income tax system, with four brackets dependent on income level and filing status. The tax rates, which vary from 1.7% to 4.9%, are ranked in the bottom 20 in the U.S. No New Mexico cities levy local income taxes.

This calculator reflects the 2018 federal withholding tax changes.
Click here to learn more about how the Trump Tax Plan will affect you.

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  • Our Tax Expert

    Jennifer Mansfield, CPA Tax

    Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.

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New Mexico Paycheck Calculator

Photo credit: ©iStock.com/River North Photography
New Mexico Paycheck Quick Facts
  • New Mexico income tax rate: 1.7% - 4.9%
  • Median household income: $45,674 (U.S. Census Bureau)
  • Number of cities that have local income taxes: 0

How Your New Mexico Paycheck Works

When you get a new job in New Mexico, you will have to fill out a W-4 form. This is the form that your employer will use to figure out how much money to withhold from your paychecks for federal income taxes. That money is sent to the IRS where it will be counted toward your annual income taxes. There are a number of factors that affect how much you pay in federal income taxes, including your salary, your marital status and how many allowances you claim.

Keep in mind that withholding calculations for federal income tax have changed for the 2018 tax year. The IRS released new guidelines in January to reflect changes that came with President Trump’s new tax plan. Taxpayers should have seen changes to their paychecks, to reflect the new tax plan, starting in February 2018. For the time being, you do not need to fill out a new W-4. Your employer will use the withholdings on your current form.

Whether you are married or single and if you have children or not are two factors that determine how many allowances you qualify for. The more allowances you claim, the less you will pay in taxes and the bigger your paycheck will be. But it’s not as simple as that because if you claim more allowances than you’re supposed to, you’re going to underpay in your taxes all year and you’ll have to make up for it during tax time. You will get hit with a big bill (and possibly a penalty) from the IRS.

Furthermore you can’t claim the same allowances at different jobs. So if you have more than one job, you have to decide which allowances you want to take at which job. Or you could keep it easier and claim all your allowances at one job and none at the other. If you do claim the same allowance at more than one job, again you’re going to have to pay more in taxes in April.

Your employer also withholds FICA taxes from your paychecks. Medicare and Social Security taxes together make up FICA taxes. Medicare tax is 1.45% of your wages and Social Security tax is 6.2% of your wages. Your employer will match that amount so your total contribution is double that. If you earn over $200,000, wages in excess of that amount will be subject to a 0.9% Medicare surtax, which employers do not match.

Your paycheck size is also dependent on how often you get paid. It stands to reason that if you get paid biweekly, your checks will be more frequent and smaller than if you get paid once a month.

New Mexico Median Household Income

YearMedian Household Income

New Mexico has fairly low income tax rates. The state has a progressive tax system with four brackets that are determined by income level and filing status. Single people in the Land of Enchantment pay 1.7% on the first $5,500 of their taxable income; 3.2% on income up to $11,000 and 4.7% on income up to $16,000. The highest tax rate is 4.9% and is on taxable income over $16,000 (for single filers). The tax rates remain the same but the income levels change for married people filing separately and married filing together and heads of household.

No cities in New Mexico charge local income taxes so you don’t have to worry about that.

If you are planning a move to New Mexico and will be using a mortgage to buy a home, or if you are interested in refinancing a property in the state, take a look at our New Mexico mortgage guide. The guide details important information about rates and the different kinds of loans you’ll be considering when getting a mortgage in the Land of Enchantment.

Income Tax Brackets

Single Filers
New Mexico Taxable IncomeRate
$0 - $5,5001.70%
$5,500 - $11,0003.20%
$11,000 - $16,0004.70%
Married, Filing Jointly
New Mexico Taxable IncomeRate
$0 - $8,0001.70%
$8,000 - $16,0003.20%
$16,000 - $24,0004.70%
Married, Filing Separately
New Mexico Taxable IncomeRate
$0 - $4,0001.70%
$4,000 - $8,0003.20%
$8,000 - $12,0004.70%
Head of Household
New Mexico Taxable IncomeRate
$0 - $8,0001.70%
$8,000 - $16,0003.20%
$16,000 - $24,0004.70%

How You Can Affect Your New Mexico Paycheck

If you opt to get benefits from your New Mexico employer, any money with which you pay for those will come out of your paycheck before it hits your bank account. For example if you get health insurance for you and your family through an employer-sponsored plan, your premiums will be deducted from your wages. The same goes for if you choose to contribute money to a retirement plan like a 401(k) or 403(b). These retirement accounts are pre-tax, meaning they get taken out of your salary before taxes are applied, so upping your contributions to those accounts will actually lower your taxable income.

You can also shelter more of your money from taxes in a Health Savings Account or a Flexible Spending Account. You can use these accounts to pay for medical-related expenses like certain prescriptions and co-pays. A word of caution if you utilize one of these accounts: they do not roll over from year to year, so whatever you put in it, is use-it-or-lose-it.

If you are worried about having to pay a lot of taxes in April and you don’t mind opting to receive a slightly smaller paycheck, you can have your New Mexico employer withhold a dollar amount from each of your paychecks, say $20. You shouldn’t notice a huge difference in each of your paychecks, but it will help to spread out your tax burden over the entire year and lower the chances that you will be hit with a big bill in tax season.

New Mexico Top Income Tax Rate

YearTop Income Tax Rate

Most Paycheck Friendly Places

SmartAsset's interactive map highlights the most paycheck friendly counties across the country. Zoom between states and the national map to see data points for each region, or look specifically at one of the four factors driving our analysis: Semi-Monthly Paycheck, Purchasing Power, Unemployment Rate, and Income Growth.

Rank County Semi-Monthly Paycheck Purchasing Power Unemployment Rate Income Growth

Methodology Our study aims to find the most paycheck friendly places in the country. These are places in the country with favorable economic conditions where you get to keep more of the money you make. To find these places we considered four different factors: semi-monthly paycheck, purchasing power, unemployment rate and income growth.

First, we calculated the semi-monthly paycheck for a single individual with two personal allowances. We applied relevant deductions and exemptions before calculating income tax withholding. To better compare withholding across counties we assumed a $50,000 annual income. We then indexed the paycheck amount for each county to reflect the counties with the lowest withholding burden.

We then created a purchasing power index for each county. This reflects the counties with the highest ratio of household income to cost of living. We also created an unemployment rate index that shows the counties with the lowest unemployment. For income growth, we calculated the annual growth in median income over five years for each county and indexed the results.

Finally, we calculated the weighted average of the indices to yield an overall paycheck friendliness score. We used a one half weighting for semi-monthly paycheck and a one-sixth weighting for purchasing power, unemployment rate and income growth. We indexed the final number so higher values reflect the most paycheck friendly places.

Sources: SmartAsset, government websites, US Census Bureau 2016 5-Year American Community Survey, MIT Living Wage Study, Bureau of Labor Statistics