New Mexico variant. This is a New Mexico-specific version of the Stock Sale Capital Gains Tax Estimator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Stock Sale Capital Gains Tax Estimator.
Most states tax capital gains as ordinary income. In New Mexico, that means a top rate of 5.9% on gains.
Capital gains tax in New Mexico
Federally, long-term gains are taxed at 0%, 15%, or 20% depending on income, plus a possible 3.8% net investment income tax. New Mexico then taxes the same gains as ordinary income at up to 5.9%.
Short-term gains (assets held under a year) are taxed as ordinary income at both levels - usually the most expensive outcome.
About taxes and housing in New Mexico
New Mexico levies a graduated income tax with a top marginal rate near 5.9%.
New Mexico has a relatively low effective property tax rate around 0.80%, with median home values near $295,000.
New Mexico's economy is supported by oil and gas production, federal research laboratories, and tourism.
Worked example: $50,000 long-term gain
A $50,000 long-term gain: federal 15% = $7,500, plus New Mexico state tax up to 5.9% = $2,950, for a combined bill near $10,450.
Quick reference
- State income tax: 1.7-5.9% across 5 brackets
- State sales tax: 4.875% (plus 2.79% avg local)
- Median home value: $295,000
- Median household income: $58,722
- Effective property tax rate: 0.8%
- Avg auto insurance: $1,531/yr
Frequently Asked Questions
Does New Mexico tax capital gains?
Yes - New Mexico taxes capital gains as ordinary income at up to 5.9%.
What's the difference between short and long-term gains?
Assets held over a year get preferential long-term federal rates (0/15/20%); shorter holds are taxed as ordinary income.