Tax Guide » State Taxes » U.S. Map » New Mexico
New Mexico collects a state income tax across four brackets ranging from 1.7 percent to a top rate of 4.9 percent. More on New Mexico taxes can be found in the tabbed pages below.
Personal income tax
- The Land of Enchantment uses a four-bracket, graduated rate table:
-- 1.7 percent on the first $5,500 of taxable income.
-- 3.2 percent on taxable income between $5,501 and $11,000.
-- 4.7 percent on taxable income between $11,001 and $16,000.
-- 5.3 percent on taxable income of $16,001 and above. - New Mexico's personal income tax "piggybacks" on federal returns, using the federal adjusted gross income as its base. New Mexico used the same dollar amounts as the IRS for personal exemptions, standard deductions and itemized deductions.
- New Mexico tax returns are due on April 15 or the next business day if that date falls on a weekend or holiday.
Sales taxes
- New Mexico's gross receipts tax (what most of us call sales tax) went up to 5.125 percent effective July 1, 2010.
- The combined gross receipts tax rate varies throughout the state from 5.125 percent to 8.6875 percent. The total rate is a combination of all rates imposed by the state, counties and municipalities.
Personal and real property taxes
- In general, taxes are not assessed on personal property. Personal household effects, licensed vehicles, registered aircraft, certain personal property warehoused in the state and business personal property that is not depreciated for federal income tax purposes are exempt from the property tax.
- Real property tax rates vary substantially and depend on the type of property and its location.
- New Mexico assesses residences at market value. Assessors usually determine market value by the sales-comparison approach, which matches a property's value to that of similar properties.
- Residents age 65 or older as of the first of the year and who meet income thresholds may be eligible for a valuation limitation. This means the current assessed value of your property cannot be raised as long as you qualify for the limitation. You must file an application each year to qualify.
- Instead of a homestead exemption, New Mexico has a head of family exemption. Eligible residents must apply for it only once to receive it in subsequent years. Only one family exemption per household is permitted, and it must be the property in which the owner resides in the State of New Mexico. The Head of the Household exemption is currently capped at $2,000.
Inheritance and estate taxes
- New Mexico has no inheritance tax, but an inheritance may be reflected in a taxpayer's modified gross income and taxed that way.
- Due to the phaseout of the state credit on federal estate taxes, New Mexico does not impose an estate tax on decedents dying after Jan. 1, 2005.
Other New Mexico tax facts
- New Mexico taxpayers are able to complete a variety of tax tasks electronically.
- The state maintains a public list of delinquent taxpayers. Persons who wish to report noncompliant taxpayers can call the New Mexico Audit and Compliance Division at (505) 841-6262.
For more information, visit the New Mexico Taxation and Revenue Department website.To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions.
« Back to State Tax Map