New Mexico income tax rate 2026
OfficialNew Mexico rates, brackets and the tax on common salaries.
- Rate
- 1.5% to 5.9%
- Tax on $75,000
- $2,359
- 3.1% effective
- Tax on $100,000
- $3,569
- 3.6% effective
- Rank among taxing states
- #32 of 42
- by tax taken on $75,000, 1 takes the most
What is the New Mexico income tax rate in 2026?
New Mexico taxes wages at 1.5% to 5.9% in 2026. On a $75,000 salary, New Mexico income tax is $2,359, an effective rate of 3.15%.
How this is calculated
- The effective rate is the yearly state income tax divided by gross pay, after the state's deductions and exemptions.
- The reference worker is a single filer with one job, paid every two weeks, with a standard Form W-4 and no pre-tax deductions, under 65.
New Mexico income tax brackets for 2026
New Mexico has 6 brackets for single filers, from 1.5% to 5.9%. The 5.9% top bracket starts at $210,000 of taxable income for a single filer. Federal income tax comes on top, under the 2026 federal tax brackets.
Single
| Taxable income over | Rate |
|---|---|
| $0 | 1.5% |
| $5,500 | 3.2% |
| $16,500 | 4.3% |
| $33,500 | 4.7% |
| $66,500 | 4.9% |
| $210,000 | 5.9% |
Married filing jointly
| Taxable income over | Rate |
|---|---|
| $0 | 1.5% |
| $8,000 | 3.2% |
| $25,000 | 4.3% |
| $50,000 | 4.7% |
| $100,000 | 4.9% |
| $315,000 | 5.9% |
Head of household
| Taxable income over | Rate |
|---|---|
| $0 | 1.5% |
| $8,000 | 3.2% |
| $25,000 | 4.3% |
| $50,000 | 4.7% |
| $100,000 | 4.9% |
| $315,000 | 5.9% |
Brackets apply to taxable income after the state's deductions and exemptions, not to gross pay.
How much New Mexico income tax do you pay on $100,000?
On $100,000 of wages, New Mexico income tax is $3,569 in 2026, an effective rate of 3.57%. The table runs from $30,000 to $300,000. The New Mexico paycheck calculator works it out for any other pay. The New Mexico minimum wage 2026 page covers the low end of the pay scale.
How this is calculated
- Each salary is single filer wages with no pre-tax deductions, through the state's rules for the year.
- The reference worker is a single filer with one job, paid every two weeks, with a standard Form W-4 and no pre-tax deductions, under 65.
What is the New Mexico standard deduction in 2026?
The New Mexico standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly in 2026.
- Standard deduction, single
- $16,100
- Married filing jointly
- $32,200
- Personal exemption
- None
How did New Mexico income tax change in 2026, and what changes in 2027?
New Mexico kept its rate at 1.5% to 5.9% in 2026. No 2027 schedule has been published yet.
| Tax year | Kind | Lowest rate | Top rate | Standard deduction, single | Status |
|---|---|---|---|---|---|
| 2025 | progressive | 1.5% | 5.9% | $15,750 | official |
| 2026 | progressive | 1.5% | 5.9% | $16,100 | official |
How does New Mexico income tax compare with other states?
On $75,000, New Mexico income tax ranks #32 of 42 states that tax wages, where #1 takes the most. The income tax rates by state page compares all of them.
How this is calculated
- Each state's income tax on the same $75,000 salary, single filer, under its rules for 2026.
- States without a wage income tax are left out of this rank.
- The reference worker is a single filer with one job, paid every two weeks, with a standard Form W-4 and no pre-tax deductions, under 65.
How is New Mexico income tax withheld from a paycheck?
Employers withhold New Mexico income tax from each paycheck, using the Federal Form W-4 (New Mexico has no state certificate) each employee fills in. On a $75,000 salary paid every two weeks, that is $105.34 a paycheck. New Mexico employers withhold about $380 more a year than the tax owed on $75,000, so a typical worker gets it back at filing.
Employer withholding tables can differ from the yearly tax owed; the return settles the difference.
How this is calculated
- FYI-104 percentage tables: wages above half the federal standard deduction ($8,050 single, $16,100 married, $12,075 head of household a year) taxed at the New Mexico rates, by the filing status on the federal Form W-4.
Questions people ask
How much New Mexico tax is withheld from a bonus?
Employers can withhold New Mexico tax on a bonus at a flat 5.9%. The return settles the actual tax on it.
Does New Mexico tax overtime and tips?
Yes. New Mexico taxes overtime and tips in full. Federal law lets workers deduct qualified tips and the extra half of overtime pay, within limits, from 2025 to 2028, but New Mexico has not adopted that.
Do 401(k) contributions lower New Mexico income tax?
Yes. Traditional 401(k) contributions lower New Mexico taxable wages, as they do for federal income tax.