New Mexico Income Tax Rates & Brackets — 2026
New Mexico has a graduated income tax with 6 brackets in 2026, running from 1.5% to 5.9%. A single filer on $100,000 owes about $3,569 — an effective rate of 3.57%.
The New Mexico tax gauge at $100,000
New Mexico
$100,000 · Single · TY2026New Mexico tax brackets for 2026
Every filing status, as published by New Mexico Taxation and Revenue Department. Rates apply to New Mexico taxable income — that is income after the deductions and exemptions shown on each card.
Single
Standard deduction $16,100| Taxable income | Marginal rate |
|---|---|
| $0 – $5,499 | 1.5% |
| $5,500 – $16,499 | 3.2% |
| $16,500 – $33,499 | 4.3% |
| $33,500 – $66,499 | 4.7% |
| $66,500 – $209,999 | 4.9% |
| $210,000 and above | 5.9% |
Married filing jointly
Standard deduction $32,200| Taxable income | Marginal rate |
|---|---|
| $0 – $7,999 | 1.5% |
| $8,000 – $24,999 | 3.2% |
| $25,000 – $49,999 | 4.3% |
| $50,000 – $99,999 | 4.7% |
| $100,000 – $314,999 | 4.9% |
| $315,000 and above | 5.9% |
Married filing separately
Standard deduction $16,100| Taxable income | Marginal rate |
|---|---|
| $0 – $3,999 | 1.5% |
| $4,000 – $12,499 | 3.2% |
| $12,500 – $24,999 | 4.3% |
| $25,000 – $49,999 | 4.7% |
| $50,000 – $157,499 | 4.9% |
| $157,500 and above | 5.9% |
Head of household
Standard deduction $24,150| Taxable income | Marginal rate |
|---|---|
| $0 – $7,999 | 1.5% |
| $8,000 – $24,999 | 3.2% |
| $25,000 – $49,999 | 4.3% |
| $50,000 – $99,999 | 4.7% |
| $100,000 – $314,999 | 4.9% |
| $315,000 and above | 5.9% |
How the maths actually works
Rates are marginal: the 5.9% top rate applies only to the dollars above the top threshold, never to your whole income. A single filer on $100,000 in New Mexico subtracts $16,100 of deductions and exemptions, then pays each bracket in turn on $83,900 of taxable income — $3,569 in all, or 3.57% of gross income. Marginal vs effective rate, explained.
What New Mexico costs at different incomes
Single filer, standard deduction, no dependents. Rank is out of 50 jurisdictions, lowest tax first.
| Gross income | Taxable income | State tax | Effective rate | Per month | National rank | vs median state |
|---|---|---|---|---|---|---|
| $50,000 | $33,900 | $1,184 | 2.37% | $99 | 15th of 50 | −$260 |
| $75,000 | $58,900 | $2,359 | 3.15% | $197 | 20th of 50 | −$189 |
| $100,000 | $83,900 | $3,569 | 3.57% | $297 | 22nd of 50 | −$158 |
| $150,000 | $133,900 | $6,019 | 4.01% | $502 | 25th of 50 | −$47 |
| $250,000 | $233,900 | $11,158 | 4.46% | $930 | 29th of 50 | +$400 |
| $500,000 | $483,900 | $25,908 | 5.18% | $2,159 | 35th of 50 | +$3,778 |
| $1,000,000 | $983,900 | $55,408 | 5.54% | $4,617 | 36th of 50 | +$10,642 |
New Mexico income tax calculator
Change the income, filing status and number of dependents to see the bracket-by-bracket breakdown.
- Income
- $100,000
- Standard deduction
- $16,100
- Exemptions
- $0
- Taxable income
- $83,900
Bracket by bracket
| Taxable income in bracket | Rate | Income taxed | Tax |
|---|---|---|---|
| $0 – $5,499 | 1.5% | $5,500 | $82.50 |
| $5,500 – $16,499 | 3.2% | $11,000 | $352.00 |
| $16,500 – $33,499 | 4.3% | $17,000 | $731.00 |
| $33,500 – $66,499 | 4.7% | $33,000 | $1,551.00 |
| $66,500 – $209,999 | 4.9% | $17,400 | $852.60 |
This estimates state income tax only, using the standard deduction and personal/dependent exemptions. It does not model itemised deductions, most credits, retirement-income exclusions, or local income taxes. Your actual bill will differ. See how we calculate this and New Mexico's full brackets and sources.
New Mexico versus its neighbours
State income tax owed by a single filer on $100,000 in 2026.
What changed since 2025
New Mexico's income tax changed between 2025 and 2026. A single filer on $100,000 owes $17 less than in 2025.
| 2025 | 2026 | |
|---|---|---|
| Top marginal rate | 5.9% | 5.9% |
| Structure | graduated | graduated |
| Standard deduction (single) | $15,750 | $16,100 |
| Tax on $100,000 (single) | $3,586 | $3,569 |
The 2025 rules are kept in full on the New Mexico 2025 tax year page, for amended returns and late filings.
Retirement income
How New Mexico treats retirement income in tax year 2025. This is verified separately from the rate schedule above and can be for a different tax year.
Benefits are fully exempt below the income threshold: under $100,000 single, under $150,000 married filing jointly, surviving spouse and head of household, under $75,000 married filing separately. Above the threshold benefits are taxable; the exemption is a cliff, not a phase-out.
Pension income is taxed as ordinary income. New Mexico's separate deduction for taxpayers aged 65 and older is not modelled here.
401(k), 403(b) and traditional IRA distributions are taxed as ordinary income.
- Social Security income tax exemption, income limit $100,000. Enacted 2022. Married filing separately threshold is $75,000.
Not modelled: New Mexico's age-65 income deduction and its medical-expense deductions for seniors are not modelled. The exemption is a cliff at the stated thresholds; taxpayers just over a limit lose it entirely.
Source: New Mexico Taxation and Revenue Department — Social Security Income Tax Exemption (retrieved 2026-09-04). Compare every state.
Capital gains
How New Mexico taxes a capital gain in tax year 2025. This is verified separately from the rate schedule above and can be for a different tax year.
New Mexico's general capital gains deduction is a flat dollar amount, not a percentage. The 2025 PIT-1 instructions say a filer with net capital gains "may be able to claim a deduction of up to $2,500 or 40% of up to $1,000,000 of your net capital gain income from the sale of a New Mexico business." For anyone not selling a New Mexico business the deduction is the $2,500, so gain above that meets the ordinary schedule at up to 5.9%.
The deduction is written against net capital gain, a long-term measure. A short-term gain is taxed as ordinary income at up to 5.9%.
New Mexico starts from federal adjusted gross income and takes the deduction against it.
The deduction is the greater of the two amounts, not the sum.
Exclusions that reach only certain assets
- New Mexico business sale deduction — 40% of up to $1,000,000 of net capital gain income from the sale of a New Mexico business, claimed instead of the $2,500 flat deduction where it is larger. Introduced in its current form by H.B. 252 (2024) for taxable years beginning on or after 1 January 2025.
These do not change the rates above, which are the rates on a gain that qualifies for no exclusion — a share of stock, for instance.
Not modelled: A flat $2,500 deduction does not lower the marginal rate on a large gain, so the 5.9% recorded here is the rate above the deduction, not an effective rate on the whole gain.
Source: New Mexico Taxation and Revenue Department — Instructions for 2025 PIT-1 New Mexico Personal Income Tax Return (retrieved 2026-09-19). Compare every state.
Local income taxes
No New Mexico county or municipality levies an individual income tax. Local revenue comes from the gross receipts tax instead.
What else to know about New Mexico
- Six graduated brackets from 1.5% to 5.9%. Heads of household and surviving spouses use the same rate table as married couples filing jointly.
- The bracket structure was rewritten by H.B. 252 (2024) effective for tax years beginning on or after January 1, 2025, adding a 4.3% bracket and widening the lower brackets.
- New Mexico's bracket thresholds are set in dollars in statute (NMSA 1978 Sec. 7-2-7) and are not indexed for inflation.
- New Mexico taxable income starts from federal adjusted gross income less the federal standard or itemized deduction, so the state standard deduction moves with the federal one.
- Social Security income is exempt below $100,000 of adjusted gross income ($150,000 joint), and there is a refundable state Child Tax Credit.
Capital gains
New Mexico allows a deduction equal to the greater of (a) net capital gain income up to $2,500, or (b) 40% of up to $1,000,000 of net capital gain from the sale of a New Mexico business. NMSA 1978 Sec. 7-2-34 as amended by H.B. 252 (2024). A 40% exclusion applies to qualifying long-term gains.
What our figures leave out
Sources
- 1.New Mexico Taxation and Revenue DepartmentState revenue departmentFYI-104, New Mexico Withholding Tax, Effective January 1, 2026 (Rev. 11/2025)Retrieved · 2026 percentage-method tables reproduce the same 1.5%/3.2%/4.3%/4.7%/4.9%/5.9% progression and the same bracket widths ($8,000, $25,000, $50,000, $100,000, $315,000 above the deduction offset for married filers), confirming the statutory schedule is unchanged for 2026.
- 2.Tax FoundationResearch organisation (cross-check)State Individual Income Tax Rates and Brackets, 2026Retrieved · Reproduces the same six brackets for both filing schedules.
- 3.New Mexico LegislatureState statuteH.B. 252 (2024), Section 5, amending NMSA 1978 Sec. 7-2-7, Individual Income Tax RatesRetrieved · Rate tables for joint/HoH/surviving spouse, single, and married filing separately, for tax years beginning on or after January 1, 2025.
- 4.Internal Revenue ServiceIRSRevenue Procedure 2025-32 (2026 inflation adjustments)Retrieved · 2026 federal basic standard deduction: $16,100 single and married filing separately, $24,150 head of household, $32,200 married filing jointly.
- 5.New Mexico Taxation and Revenue DepartmentState revenue department2025 PIT-1 New Mexico Personal Income Tax InstructionsRetrieved · Establishes that New Mexico's deduction is the taxpayer's federal standard or itemized deduction.
Figures on this page were last checked against these sources on . Found something wrong? Report it.