New Mexico variant. This is a New Mexico-specific version of the Income Tax Calculator, 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 Income Tax Calculator.
New Mexico income tax (1.7-5.9% across 5 brackets) stacks on top of federal tax. Understanding both layers is essential to estimating your total New Mexico tax bill.
New Mexico state income tax structure
New Mexico taxes income at 1.7-5.9% across 5 brackets, with a top marginal rate of 5.9%. Like the federal system, only income within each bracket is taxed at that bracket's rate.
Federal brackets (10%–37%) apply nationwide. Combine your federal effective rate with the New Mexico rate to find your true marginal tax on the next dollar earned.
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: state tax on $58,722
Using the 5.9% top rate as a ceiling, state income tax on $58,722 is at most about $3,465; the actual figure is lower after brackets and deductions.
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 have state income tax?
Yes - 1.7-5.9% across 5 brackets, topping out at 5.9%.
What is the top tax rate in New Mexico?
The top marginal state rate is 5.9%.