New Mexico Income Tax Rates, Brackets, and Calculator for 2026
New Mexico has six income tax brackets with income tax rates from 1.5% to 5.9% for 2026. Compare NM state tax at $75,000, $100,000, and other income levels. See how filing status changes the results and where New Mexico ranks among states.
New Mexico has six individual income tax brackets with rates from 1.5% to 5.9% for 2026. Its progressive system applies each rate only to the portion of taxable income within that bracket. Married Filing Jointly and Head of Household use the same bracket thresholds, which are wider than the Single amounts but do not double them. The calculator and tables below compare New Mexico taxes across income levels, filing statuses, and states, with examples showing how the federal standard deduction and state brackets affect the results.
The New Mexico Legislature establishes the income tax rules, while the New Mexico Taxation and Revenue Department administers them and publishes the tax forms and instructions. House Bill 252 introduced the six-rate schedule in 2025, and the rates and brackets remain unchanged for 2026. The Department's 2025 PIT-1 instructions provide the state deduction and exemption rules used in our calculations, alongside the IRS's updated federal standard deductions for 2026. For calendar-year filers, federal Form 1040 series returns and New Mexico Form PIT-1 tax returns for income earned in 2026 are generally due April 15, 2027.
New Mexico's low- and middle-income exemption can reduce taxable income in addition to the federal standard deduction. Our calculator includes this exemption when applicable, but it phases out as income rises and does not apply to either household in our examples. The step-by-step calculations show how the deduction and filing-status thresholds produce different effective tax rates for Single and Married Filing Jointly households.
Tax Calculator
New Mexico Income Tax Calculator for 2026
Enter annual household income and select a filing status to estimate New Mexico income tax for 2026. Results open in our All 50 States income tax calculator with New Mexico highlighted. The table below shows New Mexico income tax for a Single filer earning $50,000 to $150,000 annually. Notice how the effective rate rises across this range as more income reaches the higher brackets and the standard deduction offsets a smaller share of income.
How Much Will You Pay in New Mexico?
| Household Income | State Tax | Marginal Rate | Effective Rate | State Rank |
|---|---|---|---|---|
| $50,000 | $1,184 | 4.7% | 2.37% | 16 |
| $75,000 | $2,359 | 4.7% | 3.15% | 20 |
| $100,000 | $3,569 | 4.9% | 3.57% | 22 |
| $125,000 | $4,794 | 4.9% | 3.84% | 23 |
| $150,000 | $6,019 | 4.9% | 4.01% | 25 |
New Mexico ranks in the low income tax range nationally at $50,000 and in the moderate range at the higher incomes shown, moving from 16th to 25th across these examples. At $100,000 of annual income, a Single filer pays an estimated $3,569 in New Mexico state income tax for 2026. The marginal tax rate reached is 4.9%, while the effective tax rate is 3.57%. The standard deduction and income taxed in lower brackets keep the effective rate below the marginal rate.
The ranked estimates assume full-year New Mexico residency, Single filing status, wages only, no dependents, and a taxpayer under age 65 who is not blind or claimed as another taxpayer's dependent. They include the $16,100 federal standard deduction used to calculate New Mexico taxable income for 2026. The calculator also includes New Mexico's low- and middle-income exemption when applicable, but it is fully phased out at all five income levels shown. No other deductions, income adjustments, or tax credits are included. Federal, payroll, and local taxes are excluded. The step-by-step examples further down the page explain how New Mexico income tax is calculated for Single and Married Filing Jointly households.
Tax Rates
New Mexico Income Tax Rates
New Mexico's six individual income tax rates are 1.5%, 3.2%, 4.3%, 4.7%, 4.9%, and 5.9% for 2026. The same rates apply to Single, Married Filing Jointly, Married Filing Separately, and Head of Household, but the income thresholds differ. Married Filing Jointly and Head of Household use the same thresholds, which are wider than the Single amounts but do not double them. Each rate applies only to the portion of taxable income within that bracket.
2026 New Mexico Income Tax Brackets
| Bracket | Rate | Single | Married Filing Jointly | Married Filing Separately | Head of Household |
|---|---|---|---|---|---|
| 1 | 1.5% | $0 - $5,500 | $0 - $8,000 | $0 - $4,000 | $0 - $8,000 |
| 2 | 3.2% | $5,501 - $16,500 | $8,001 - $25,000 | $4,001 - $12,500 | $8,001 - $25,000 |
| 3 | 4.3% | $16,501 - $33,500 | $25,001 - $50,000 | $12,501 - $25,000 | $25,001 - $50,000 |
| 4 | 4.7% | $33,501 - $66,500 | $50,001 - $100,000 | $25,001 - $50,000 | $50,001 - $100,000 |
| 5 | 4.9% | $66,501 - $210,000 | $100,001 - $315,000 | $50,001 - $157,500 | $100,001 - $315,000 |
| 6 | 5.9% | $210,001+ | $315,001+ | $157,501+ | $315,001+ |
New Mexico's current rate schedule took effect in 2025 under House Bill 252 and remains unchanged for 2026. The law expanded the schedule from five to six rates, lowered the first rate from 1.7% to 1.5%, added a 4.3% rate, and revised the income thresholds. New Mexico does not adjust its bracket thresholds annually for inflation. As wages rise with inflation, more income can reach higher brackets even when purchasing power has not increased.
Compare States
Compare New Mexico to Other States
The next table compares New Mexico with its five neighboring states, plus California and Kansas, at $75,000 of annual income for a Single filer. States appear from lowest to highest state income tax, with the difference measured against New Mexico. The marginal rate identifies the tax bracket reached, while the effective rate is state income tax divided by $75,000 of household income, expressed as a percentage. Notice that a lower marginal tax rate does not always mean a lower state tax bill.
New Mexico vs Other States at $75,000 of Income (2026)
| State Name | State Tax | Difference | Marginal Rate | Effective Rate | State Rank |
|---|---|---|---|---|---|
| Texas | $0 | −$2,359 | 0% | 0.00% | 1 |
| Arizona | $1,481 | −$878 | 2.5% | 1.98% | 11 |
| New Mexico | $2,359 | $0 | 4.7% | 3.15% | 20 |
| Colorado | $2,592 | +$232 | 4.4% | 3.46% | 27 |
| California | $2,665 | +$306 | 8% | 3.55% | 30 |
| Oklahoma | $2,830 | +$470 | 4.5% | 3.77% | 31 |
| Utah | $3,110 | +$750 | 4.45% | 4.15% | 37 |
| Kansas | $3,385 | +$1,026 | 5.58% | 4.51% | 41 |
Five of the seven comparison states have higher estimated state income tax than New Mexico at this income level. New Mexico's $2,359 tax is about $232 lower than Colorado's and $470 lower than Oklahoma's, despite its higher marginal rate. New Mexico is also about $306 lower than California and $878 higher than Arizona. Texas has no state income tax.
Examples
New Mexico Income Tax Calculation Examples
The goal of these examples is to compare Single and Married Filing Jointly statuses at the same $75,000 annual income per person. The Single example uses $75,000 of household income, while the Married Filing Jointly example assumes each spouse earns $75,000, for a combined $150,000. The results match our 2026 income tax calculator using these income amounts and the corresponding filing status.
To simplify the calculations, both examples assume full-year New Mexico residency, W-2 wages only, no dependents, and taxpayers under age 65 who are not blind or claimed as dependents. In the comparison table, we first reduce household income by the federal standard deduction to calculate New Mexico taxable income. We then apply the state brackets to calculate New Mexico state income tax. Neither household qualifies for the low- and middle-income exemption at these incomes. No other deductions, income adjustments, or tax credits are included.
2026 New Mexico Filing Status Comparison
| Tax Metric | Single | Married Filing Jointly |
|---|---|---|
| Household Income | $75,000 | $150,000 |
| Federal Standard Deduction | $16,100 | $32,200 |
| Income Exemption | $0 | $0 |
| Taxable Income | $58,900 | $117,800 |
| State Income Tax | $2,359 | $4,961 |
| Effective Tax Rate | 3.15% | 3.31% |
| Marginal Tax Rate | 4.7% | 4.9% |
Looking at the table above, we can see that the Single household reaches New Mexico's 4.7% bracket, while the married couple reaches the 4.9% bracket. The joint standard deduction is twice the Single amount, but the joint bracket thresholds are less than twice the Single thresholds. The couple's $4,961.20 tax exceeds the combined $4,718.60 tax of two single filers by $242.60, creating a marriage penalty in this comparison. The joint effective rate is 3.31%, compared with 3.15% for Single. Next, we will review the step-by-step calculations for each filing status.
Step-by-Step Example 1: Single
For a single filer with $75,000 of household income, the 2026 federal standard deduction is $16,100. New Mexico uses that federal deduction amount to reduce state taxable income to $58,900. That income fills the first three brackets, with the remaining amount taxed at 4.7% in the fourth bracket.
- New Mexico taxable income: Subtract the federal standard deduction from household income. $75,000 − $16,100 = $58,900
- Tax through the first three brackets: Apply each rate to the income within that bracket. $5,500 × 1.5% = $82.50 $11,000 × 3.2% = $352.00 $17,000 × 4.3% = $731.00 Then add the results. $82.50 + $352.00 + $731.00 = $1,165.50
- Tax on the fourth bracket: Subtract $33,500 from $58,900, leaving $25,400 taxed at 4.7%. $25,400 × 0.047 = $1,193.80
- Estimated New Mexico income tax: Add the tax from the lower brackets and the fourth bracket. $1,165.50 + $1,193.80 = $2,359.30
To calculate the New Mexico effective tax rate, we divide $2,359.30 of state income tax by $75,000 of household income. The result is 3.15%, rounded. The estimated state income tax rounds to $2,359 in the comparison table.
The New Mexico marginal tax rate is 4.7%, the rate applied to the next dollar of New Mexico taxable income. The standard deduction and income taxed in lower brackets keep the effective rate below that marginal rate.
Step-by-Step Example 2: Married Filing Jointly
Now let's apply the calculation to a married couple filing jointly. Each spouse earns $75,000, for a combined household income of $150,000. Subtracting the 2026 federal joint standard deduction of $32,200 leaves $117,800 of New Mexico taxable income. The couple fills the first four joint brackets, with the amount above $100,000 taxed at 4.9% in the fifth bracket.
- New Mexico taxable income: Subtract the federal joint standard deduction from household income. $150,000 − $32,200 = $117,800
- Tax through the first four brackets: Apply each rate to the income within the corresponding joint bracket. $8,000 × 1.5% = $120.00 $17,000 × 3.2% = $544.00 $25,000 × 4.3% = $1,075.00 $50,000 × 4.7% = $2,350.00 Then add the results. $120.00 + $544.00 + $1,075.00 + $2,350.00 = $4,089.00
- Tax on the fifth bracket: Subtract $100,000 from $117,800, leaving $17,800 taxed at 4.9%. $17,800 × 0.049 = $872.20
- Estimated New Mexico income tax: Add the tax from the lower brackets and the fifth bracket. $4,089.00 + $872.20 = $4,961.20
To calculate the New Mexico effective tax rate, we divide $4,961.20 of state income tax by $150,000 of household income. The result is 3.31%, rounded, compared with 3.15% for Single. The estimated state income tax rounds to $4,961 in the comparison table. The couple pays a larger share of household income in state tax because the joint brackets do not widen enough to match the doubling of taxable income.
The New Mexico marginal tax rate is 4.9%, compared with 4.7% in the Single example. The couple's $117,800 of taxable income exceeds the $100,000 joint threshold for the 4.9% bracket, while the Single filer's $58,900 remains below the corresponding $66,500 threshold.
Takeaway
New Mexico Income Tax Takeaways
Effective rates are lower than the bracket rates
Our Single example at $75,000 produces an estimated $2,359 in New Mexico income tax, while the Married Filing Jointly example at $150,000 produces $4,961. Their effective rates are 3.15% and 3.31%, below the respective marginal rates of 4.7% and 4.9%. The federal standard deduction and income taxed in lower brackets reduce the share of household income paid in state tax.
The examples show a marriage penalty
The married couple's $4,961.20 tax is $242.60 more than the combined $4,718.60 tax of two single filers earning $75,000 each. The joint standard deduction doubles, but the joint bracket thresholds are less than twice the Single thresholds. The couple therefore pays more tax than the two single filers and reaches a higher marginal rate. Other income splits, deductions, and credits can change the result.
The income exemption depends on earnings
New Mexico's low- and middle-income exemption can reduce taxable income in addition to the federal standard deduction. Our calculator includes this exemption when applicable, but its amount decreases as income rises through the phaseout range. Both example households exceed that range, which is why the Income Exemption row shows $0 for each filing status.
New Mexico ranks low to moderate nationally
For Single filers, New Mexico's national rank moves from 16th at $50,000 to 20th at $75,000 and 25th at $150,000, with 1 representing the lowest effective rate. Its effective rate rises from 2.37% to 4.01% across this range as more income reaches higher brackets and the standard deduction offsets a smaller share of income. At $75,000, New Mexico has lower estimated state income tax than five of the seven comparison states. Its tax is about $232 less than Colorado's and $878 more than Arizona's.
FAQ
Frequently Asked Questions
What is the New Mexico income tax rate for 2026?
New Mexico has six individual income tax rates for 2026: 1.5%, 3.2%, 4.3%, 4.7%, 4.9%, and 5.9%. Each rate applies only to the portion of taxable income within its bracket. The bracket thresholds vary by filing status.
How much is New Mexico income tax on $75,000?
A Single filer earning $75,000 in wages owes an estimated $2,359 in New Mexico state income tax for 2026. The $16,100 federal standard deduction leaves $58,900 of New Mexico taxable income. The effective tax rate is 3.15%, and the marginal tax rate is 4.7%.
How much is New Mexico income tax on $100,000?
A Single filer earning $100,000 in wages owes an estimated $3,569 in New Mexico state income tax for 2026. The $16,100 federal standard deduction leaves $83,900 of New Mexico taxable income. The effective tax rate is 3.57%, and the marginal tax rate is 4.9%.
What is the New Mexico marginal tax rate?
Your marginal tax rate is the rate applied to the next dollar of New Mexico taxable income. It depends on your taxable income and filing status, with rates from 1.5% to 5.9% for 2026. Our Single example at $75,000 reaches the 4.7% bracket, while the married couple earning $150,000 reaches the 4.9% bracket.
What is the New Mexico effective tax rate?
The effective tax rate is New Mexico state income tax divided by household income, expressed as a percentage. Our Single example at $75,000 has a 3.15% effective rate, while the married couple earning $150,000 has a 3.31% effective rate. The federal standard deduction and income taxed in lower brackets keep these rates below the respective marginal rates of 4.7% and 4.9%.
Does New Mexico have a marriage penalty?
Yes, in our comparison of a married couple earning $75,000 each with two Single filers earning the same amounts. The couple owes $4,961.20, which is $242.60 more than the combined $4,718.60 tax of the two Single filers. The joint standard deduction doubles, but the joint bracket thresholds are less than twice the Single thresholds. Other income splits, deductions, and credits can change the result.
How much is the New Mexico standard deduction for 2026?
New Mexico uses the federal standard deduction, which is $16,100 for Single and Married Filing Separately, $32,200 for Married Filing Jointly and Qualifying Surviving Spouse, and $24,150 for Head of Household in 2026. Taxpayers who itemize on their federal return use their federal Schedule A deductions, subject to New Mexico adjustments. These include an add-back for all or part of the state and local income or sales taxes deducted federally.
How much is the New Mexico low- and middle-income exemption for 2026?
The exemption is up to $2,500 for the taxpayer, spouse, and each qualifying dependent, depending on federal adjusted gross income and filing status. It decreases as income rises and is unavailable above $36,667 for Single, $27,500 for Married Filing Separately, or $55,000 for Married Filing Jointly, Head of Household, and Qualifying Surviving Spouse. New Mexico does not provide a separate fixed personal exemption for every taxpayer. Our calculator includes the income-based exemption for the taxpayer and spouse when applicable.
Does New Mexico allow a dependent deduction?
Yes. Qualifying Married Filing Jointly and Head of Household taxpayers may deduct $4,000 for each qualifying dependent after the first. A taxpayer who can be claimed as someone else's dependent cannot claim this deduction. The PIT-1 instructions include a worksheet for calculating the amount. Our calculator and examples do not include dependents.
How much is the New Mexico Working Families Tax Credit for 2026?
The refundable Working Families Tax Credit (WFTC) is 25% of the federal Earned Income Tax Credit (EITC). Based on the 2026 federal maximum, the state credit can reach approximately $2,058 for qualifying taxpayers with three or more qualifying children. New Mexico also extends eligibility to certain residents who meet the other EITC requirements but lack a qualifying federal identification number or are ages 18 through 24. Those taxpayers calculate the federal credit they otherwise would have received. Taxpayers claiming the federal EITC with qualifying children generally complete Schedule EIC.
How much is the New Mexico Child Income Tax Credit for 2026?
The refundable Child Income Tax Credit varies by adjusted gross income and the number of qualifying children. The published 2025 amounts range from $26 to $637 per qualifying child, with the maximum applying when adjusted gross income is $25,000 or less. The amounts are indexed annually, so these are not final 2026 figures. The 2026 PIT-RC instructions will provide the applicable credit table.
Does New Mexico offer a low-income tax rebate?
Yes. The refundable Low-Income Comprehensive Tax Rebate is based on modified gross income and the number of qualifying exemptions. Under the published 2025 rules, eligible residents with modified gross income of $36,000 or less could receive $17 to $839. Eligibility also required at least six months of physical presence in New Mexico and other conditions. The rebate amounts are indexed annually, so the 2026 PIT-RC instructions should be checked for the updated table.
References:
- House Bill 252, Final Version (PDF). New Mexico Legislature, 2024 regular session. Section 5 establishes the six rates and filing-status thresholds for tax years beginning on or after January 1, 2025, including 2026. The statutory thresholds are fixed rather than indexed annually. Retrieved October 22, 2026.
- 2025 New Mexico Personal Income Tax Packet (PDF). New Mexico Taxation and Revenue Department. PIT-1 instructions cover federal standard and itemized deductions, the low- and middle-income exemption, the dependent deduction, and the Working Families Tax Credit. PIT-RC provides the published 2025 Child Income Tax Credit and Low-Income Comprehensive Tax Rebate tables. These annual instructions support the filing rules and explicitly labeled 2025 amounts. The examples use the enacted state brackets and 2026 federal standard deductions. Retrieved October 22, 2026.
- 2024 New Mexico Personal Income Tax Packet (PDF). New Mexico Taxation and Revenue Department. Historical reference for the tax schedule before the changes that took effect in 2025. Not used for the current example calculations. Retrieved October 22, 2026.
- Personal Income Tax Information Overview. New Mexico Taxation and Revenue Department. Explains the low- and middle-income exemption's filing-status limits, the Working Families Tax Credit and expanded eligibility, and the Low-Income Comprehensive Tax Rebate's residency and income requirements. Retrieved October 22, 2026.
- New Mexico Child Tax Credit. New Mexico Taxation and Revenue Department. Confirms the refundable credit's per-child structure and published 2025 income-based amounts. The page's 2025 table is not a final 2026 credit schedule. Retrieved October 22, 2026.
- Revenue Procedure 2025-32: Tax Year 2026 Inflation Adjustments (PDF). Internal Revenue Service. Sections 4.06 and 4.14 provide the 2026 federal EITC maximum and standard deductions. Supports the $16,100 Single and $32,200 joint deductions used in the examples, the $24,150 Head of Household amount, and the federal maximum used to calculate the Working Families Tax Credit. Retrieved October 22, 2026.