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New Mexico Income Tax Calculator

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Overview of New Mexico Taxes

New Mexico has a progressive income tax with rates that rank among the 20 lowest in the country. The state’s average effective property tax rate is the 12th lowest rate in the country. The state does not collect a sales tax, but rather a gross receipts tax on businesses that often gets passed to consumers. Retired? Use our Retirement Income Tax Calculator.

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Household Income
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IRA Contribution
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Itemized Deductions
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Number of Personal Exemptions
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Your Income Taxes Breakdown

Tax Type Marginal 
Tax Rate
Effective 
Tax Rate
2017 
Taxes
2018 Trump Taxes*
Federal
FICA
State
Local
Total Income Taxes
Income After Taxes

* These will be the taxes owed for the 2018 - 2019 filing season.

Under the Trump Tax Plan (2018-2019 filing season), your Federal Income Tax will be and your FICA will be .

Changes to Your Federal Income
Taxes Under the Trump Tax Plan

  • Your marginal federal income tax rate will
  • Your effective federal income tax rate will
  • Your federal income taxes will

Total Estimated Tax Burden

Income Tax $
Sales Tax $
Fuel Tax $
Property Tax$
Total Estimated Tax Burden $
Percent of income to taxes = %
$
  • About This Answer

    Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions. Also, we separately calculate the federal income taxes you will owe in the 2018 - 2019 filing season based on the Trump Tax Plan.


    How Income Taxes Are Calculated

    • First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
    • Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer as well as dependents such as one’s spouse or children.
    • Based on your filing status, your taxable income is then applied to the the tax brackets to calculate your federal income taxes owed for the year.
    • Your location will determine whether you owe local and / or state taxes.
    ...read more
  • Last Updated: January 31, 2018

    When Do We Update? - We regularly check for any updates to the latest tax rates and regulations.

    Customer Service - If you would like to leave any feedback, feel free to email info@smartasset.com.

    ...read more
  • 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.

    ...read more
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New Mexico state tax quick facts
  • Income tax: 1.7% - 4.9%
  • Sales tax: none (a gross receipts tax of 5.50% - 9.25% effectively acts as a sales tax)
  • Property tax: 0.76% average effective rate
  • Gas tax: 18.88 cents per gallon of regular gasoline, 22.88 cents per gallon of diesel

Taxpayers in the Land of Enchantment pay three primary forms of state and local taxes: a state income tax, local property taxes and state and local gross receipts taxes. New Mexico ranks near the middle of the 50 U.S. States for their rates in each of these categories of taxes. The income taxes and property tax rates rank among the 20 lowest and gross receipts tax rates among the 20 highest (of sales taxes).

Of course, the impact of these taxes varies depending on the financial circumstance of each taxpayer. Below we will take a closer look at the rules and exceptions for each of these taxes individually, as well as a few others such as the gas and cigarette taxes.

New Mexico Income Tax

New Mexico’s income tax is modeled after the federal income tax, albeit with significantly lower rates. As shown in the table below, there are four income brackets, with higher tax rates applying to higher earnings.

Income Tax Brackets

Single Filers
New Mexico Taxable IncomeRate
$0 - $5,5001.70%
$5,500 - $11,0003.20%
$11,000 - $16,0004.70%
$16,000+4.90%
Married, Filing Jointly
New Mexico Taxable IncomeRate
$0 - $8,0001.70%
$8,000 - $16,0003.20%
$16,000 - $24,0004.70%
$24,000+4.90%
Married, Filing Separately
New Mexico Taxable IncomeRate
$0 - $4,0001.70%
$4,000 - $8,0003.20%
$8,000 - $12,0004.70%
$12,000+4.90%
Head of Household
New Mexico Taxable IncomeRate
$0 - $8,0001.70%
$8,000 - $16,0003.20%
$16,000 - $24,0004.70%
$24,000+4.90%

Rules for filing taxes in New Mexico are very similar to the federal tax rules. Deductions, both itemized and standard, match the federal deductions. In 2017, that means single filers can claim a standard deduction of $6,350, joint filers can claim a standard deduction of $12,700 and heads of household can claim a standard deduction $9,350. State and local taxes are not deductible in New Mexico, so any filers claiming that itemized deduction on their federal tax return must add it back to their state taxable income.

Your total federal exemption amount is exempt in New Mexico. In addition to that federal exemption, low- and middle-income earners may claim a $2,500 exemption for each federal exemption claimed. For single filers, anyone earning $36,667 or less may claim this exemption. For married person filing separately, the cutoff is $27,500. For married persons filing jointly or heads of household, the cutoff is $55,000.

Using those rules for exemptions and deductions, New Mexico taxpayers can determine their taxable income and calculate their New Mexico income tax based on the rates above. After an initial tax amount is determined, there are certain rebates and credits that can be claimed to reduce the amount of taxes owed. Consider hiring a professional accountant or looking into tax preparation software like TurboTax and TaxSlayer to help file your taxes.

The available rebates and credits include the low-income comprehensive tax rebate (available to earners making less than $22,000 per year), the child day care credit, the refundable medical care credit (for taxpayers age 65 or older), the special needs adopted child tax credit and the working families tax credit.

New Mexico Capital Gains Tax

While capital gains are taxable as personal income in New Mexico, the state allows taxpayers with income from capital gains to claim a special tax deduction. That deduction is equal to 50% of the total income from capital gains or $1,000 of the net capital gains reported, whichever is larger.

New Mexico Sales Tax

New Mexico doesn’t technically have a sales tax. Businesses are charged a gross receipts tax, collected at the state, county and city level. This is often passed on to the consumer by either adding it to the price or explicitly spelling it out on the invoice. The statewide gross receipts tax rate is 5.125%, while city and county taxes can add up to a total of 4.125%. The table below shows state, county and city rates in every county in New Mexico, as well as 100 of the largest cities. The maximum rate of 9.250% is applied only at the Taos ski resort.

Gross Receipts Tax Rates (Updated January 2018)

CountyState RateCounty RateTotal Sales Tax
Bernalillo5.125%1.313%6.438%
Catron5.125%0.563%5.688%
Chaves5.125%1.313%6.438%
Cibola5.125%1.688%6.813%
Colfax5.125%0.958%6.083%
Curry5.125%1.000%6.125%
De Baca5.125%1.563%6.688%
Doña Ana5.125%1.625%6.750%
Eddy5.125%0.750%5.875%
Grant5.125%1.438%6.563%
Guadalupe5.125%1.313%6.438%
Harding5.125%1.000%6.125%
Hidalgo5.125%1.063%6.188%
Lea5.125%0.375%5.500%
Lincoln5.125%0.375%5.500%
Los Alamos5.125%2.188%7.313%
Luna5.125%1.750%6.875%
McKinley5.125%1.625%6.750%
Mora5.125%1.563%6.688%
Otero5.125%1.188%6.313%
Quay5.125%1.563%6.688%
Rio Arriba5.125%1.375%6.500%
Roosevelt5.125%1.500%6.625%
San Juan5.125%1.438%6.563%
San Miguel5.125%1.708%6.833%
Sandoval5.125%1.125%6.250%
Santa Fe5.125%1.875%7.000%
Sierra5.125%1.813%6.938%
Socorro5.125%0.875%6.000%
Taos5.125%2.188%7.313%
Torrance5.125%1.625%6.750%
Union5.125%0.938%6.063%
Valencia5.125%1.750%6.875%
CityState RateCounty + City RateTotal Sales Tax
Alamogordo5.125%2.875%8.000%
Albuquerque5.125%2.375%7.500%
Angel Fire5.125%2.646%7.771%
Anthony5.125%2.625%7.750%
Artesia5.125%2.688%7.813%
Aztec5.125%2.875%8.000%
Bayard5.125%2.500%7.625%
Belen5.125%3.188%8.313%
Bernalillo5.125%1.937%7.062%
Bloomfield5.125%3.063%8.188%
Bosque Farms5.125%3.063%8.188%
Capitan5.125%1.688%6.813%
Carlsbad5.125%2.438%7.563%
Carrizozo5.125%1.875%7.000%
Causey5.125%2.000%7.125%
Chama5.125%3.063%8.188%
Cimarron5.125%2.646%7.771%
Clayton5.125%2.750%7.875%
Cloudcroft5.125%2.625%7.750%
Clovis5.125%3.063%8.188%
Columbus5.125%2.813%7.938%
Corona5.125%1.813%6.938%
Corrales5.125%2.438%7.563%
Cuba5.125%3.063%8.188%
Deming5.125%3.125%8.250%
Des Moines5.125%2.625%7.750%
Dexter5.125%2.188%7.313%
Eagle Nest5.125%2.396%7.521%
Edgewood5.125%2.938%8.063%
Elephant Butte5.125%3.063%8.188%
Elida5.125%2.875%8.000%
Española5.125%3.438%8.563%
Estancia5.125%3.063%8.188%
Eunice5.125%2.188%7.313%
Farmington5.125%2.500%7.625%
Floyd5.125%2.000%7.125%
Folsom5.125%2.375%7.500%
Fort Sumner5.125%2.875%8.000%
Gallup5.125%3.188%8.313%
Grady5.125%1.813%6.938%
Grants5.125%2.688%7.813%
Hagerman5.125%2.375%7.500%
Hatch5.125%2.688%7.813%
Hobbs5.125%1.688%6.813%
Hope5.125%1.625%6.750%
House5.125%2.875%8.000%
Hurley5.125%2.500%7.625%
Jal5.125%1.937%7.062%
Jemez Springs5.125%2.188%7.313%
Lake Arthur5.125%1.688%6.813%
Las Cruces5.125%3.188%8.313%
Las Vegas5.125%3.271%8.396%
Logan5.125%3.250%8.375%
Lordsburg5.125%2.625%7.750%
Los Lunas5.125%3.188%8.313%
Los Ranchos de Albuquerque5.125%2.313%7.438%
Loving5.125%1.813%6.938%
Lovington5.125%2.125%7.250%
Magdalena5.125%1.813%6.938%
Maxwell5.125%1.333%6.458%
Melrose5.125%2.625%7.750%
Mesilla5.125%3.063%8.188%
Milan5.125%2.625%7.750%
Moriarty5.125%2.563%7.688%
Mosquero5.125%1.813%6.938%
Mountainair5.125%2.813%7.938%
Pecos5.125%2.646%7.771%
Peralta5.125%2.813%7.938%
Portales5.125%3.063%8.188%
Questa5.125%3.250%8.375%
Raton5.125%3.396%8.521%
Red River5.125%3.500%8.625%
Reserve5.125%2.250%7.375%
Rio Rancho5.125%2.313%7.438%
Roswell5.125%2.563%7.688%
Roy5.125%2.188%7.313%
Ruidoso5.125%3.313%8.438%
Ruidoso Downs5.125%2.313%7.438%
San Jon5.125%3.250%8.375%
San Ysidro5.125%1.625%6.750%
Santa Clara5.125%2.500%7.625%
Santa Fe5.125%3.188%8.313%
Santa Rosa5.125%2.875%8.000%
Silver City5.125%2.875%8.000%
Socorro5.125%1.937%7.062%
Springer5.125%2.646%7.771%
Sunland Park5.125%3.313%8.438%
Taos5.125%3.375%8.500%
Taos Ski Valley5.125%4.125%9.250%
Tatum5.125%1.688%6.813%
Texico5.125%2.438%7.563%
Tijeras5.125%2.688%7.813%
Truth or Consequences5.125%3.375%8.500%
Tucumcari5.125%3.250%8.375%
Tularosa5.125%2.625%7.750%
Vaughn5.125%3.125%8.250%
Virden5.125%1.563%6.688%
Wagon Mound5.125%2.563%7.688%
Willard5.125%2.438%7.563%
Williamsburg5.125%3.063%8.188%

The gross receipts tax applies to goods and services, with some exceptions. The most significant is the exemption for food. Food that is intended for immediate consumption is not exempt, however. Prescription drugs are also exempt from gross receipts taxes in New Mexico.

New Mexico Property Tax

Property taxes in New Mexico go to support local governments and schools. The state’s average effective property tax rate (annual tax payments as a percentage of home value) is 0.76%, which is the 13th-lowest rate in the country. If you are thinking about buying a property in New Mexico or refinancing a mortgage, take a look at our New Mexico mortgage guide. It has the most relevant information about mortgages in New Mexico.

New Mexico Cigarette Tax

New Mexico’s cigarette tax, which was increased in 2010, is $1.66 per pack. That’s the 23rd-highest cigarette tax in the U.S. In addition to the cigarette tax, New Mexico also imposes the Tobacco Products Tax, which applies to the manufacture or purchase of other types of tobacco products. It is equal to 25% of the value of any tobacco product.

New Mexico Alcohol Tax

Excise taxes on alcohol in New Mexico vary depending on the type of beverage being sold. Hard liquor (vodka, whiskey, etc.) is taxed at a rate of $1.60 per liter. Beer is taxed at a rate of 41 cents per gallon, or about 3.8 cents per 12 ounce beer. That is the 13th-highest beer tax in the country. Wine is taxed at a rate of 45 cents per liter, or about 33.75 cents per bottle.

New Mexico Estate Tax

New Mexico’s estate tax has been phased out as of January 1, 2005. There is no estate or inheritance tax in New Mexico.

Photo credit: flickr
  • The Very Large Array in Socorro County consists of 27 separate radio antennae, each of which weighs more than 200 tons.
  • Truth or Consequences, New Mexico is named after a game show from the 1950s.
  • Los Alamos, New Mexico has the highest concentration of millionaires of any city in the U.S. Over 10% of households in Los Alamos have at least $1 million net worth.

Places with the Lowest Tax Burden

Are you curious how your tax burden stacks up against others in your state? SmartAsset’s interactive map highlights the counties with the lowest tax burden. Scroll over any county in the state to learn about taxes in that specific area.

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Rank County Income Tax Sales Tax Property Tax Fuel Tax

Methodology

Where you live can have a big impact on both which types of taxes you have to pay each year and how much money you spend on them. SmartAsset calculated the amount of money a specific person would pay in income, sales, property and fuel taxes in each county in the country and ranked the lowest to highest tax burden.

To better compare income tax burdens across counties, we used the national median household income. We then applied relevant deductions and exemptions before calculating federal, state and local income taxes.

In order to determine sales tax burden we estimated that 35% of take-home (after-tax) pay is spent on taxable goods. We multiplied the average sales tax rate for a county by the household income less income tax. This product is then multiplied by 35% to estimate the sales tax paid.

For property taxes, we compared the median property taxes paid in each county.

For fuel taxes, we first distributed statewide vehicle miles traveled down to the county level using the number of vehicles in each county. We then calculated the total number of licensed drivers within each county. The countywide miles were then distributed amongst the licensed drivers in the county, which gave us the miles driven per licensed driver. Using the nationwide average fuel economy, we calculated the average gallons of gas used per driver in each county and multiplied that by the fuel tax.

We then added the dollar amount for income, sales, property and fuel taxes to rank the counties to calculate a total tax burden.

Sources: US Census Bureau 2016 American Community Survey, Government Sources, Avalara, American Petroleum Institute, GasBuddy, UMTRI, Federal Highway Administration, SmartAsset