New Mexico Income
Tax Rates & Rules
New Mexico has a progressive state income tax with rates up to 5.9%. Here's how the brackets break down.
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New Mexico Income Tax Brackets
2025 tax year rates, most recently confirmed by the state Department of Revenue.
Single / Individual
| Taxable Income | Rate |
|---|---|
| $0 – $5,500 | 1.5% |
| $5,500 – $16,500 | 3.2% |
| $16,500 – $33,500 | 4.3% |
| $33,500 – $66,500 | 4.7% |
| $66,500 – $210,000 | 4.9% |
| Over $210,000 | 5.9% |
Married Filing Jointly
| Taxable Income | Rate |
|---|---|
| $0 – $8,000 | 1.5% |
| $8,000 – $25,000 | 3.2% |
| $25,000 – $50,000 | 4.3% |
| $50,000 – $100,000 | 4.7% |
| $100,000 – $315,000 | 4.9% |
| Over $315,000 | 5.9% |
First major bracket restructuring since 2005 (HB 252, 2024 session), adding a new 4.3% middle bracket. Standard deduction conforms to federal: $15,750 (Single) / $31,500 (MFJ).
Sources: New Mexico TRD — Personal Income Tax Information Overview. Last verified: August 14, 2026.
New Mexico uses a progressive personal income tax system in 2026 with marginal rates from 1.5% to 5.9%. The bracket structure that took effect for taxable years beginning on or after January 1, 2025 remains the governing statutory rate schedule for 2026.
New Mexico personal income tax starts with federal adjusted gross income, then applies state additions, deductions, exemptions, credits and rebates through Form PIT-1 and related schedules. Filing status determines the income thresholds used by the tax rate schedule.
Source: New Mexico Personal Income Tax Overview
Source: New Mexico HB 252 Rate Changes
What Are the New Mexico Income Tax Rates for 2026?
New Mexico's 2026 marginal individual income tax rates are 1.5%, 3.2%, 4.3%, 4.7%, 4.9% and 5.9%.
| Rate | Single | Married Filing Jointly / HOH / Surviving Spouse | Married Filing Separately |
|---|---|---|---|
| 1.5% | Up to $5,500 | Up to $8,000 | Up to $4,000 |
| 3.2% | $5,500 to $16,500 | $8,000 to $25,000 | $4,000 to $12,500 |
| 4.3% | $16,500 to $33,500 | $25,000 to $50,000 | $12,500 to $25,000 |
| 4.7% | $33,500 to $66,500 | $50,000 to $100,000 | $25,000 to $50,000 |
| 4.9% | $66,500 to $210,000 | $100,000 to $315,000 | $50,000 to $157,500 |
| 5.9% | Over $210,000 | Over $315,000 | Over $157,500 |
These are marginal brackets. Only the portion of taxable income within each bracket is subject to that bracket's marginal rate.
Source: New Mexico HB 252 Final Rate Schedule
How Is New Mexico Personal Income Tax Calculated?
New Mexico begins with federal adjusted gross income then applies state-specific adjustments to determine the income subject to the New Mexico rate schedule.
- Start with federal adjusted gross income.
- Apply additions, deductions and exemptions reported on New Mexico schedules.
- Determine New Mexico taxable income.
- Apply the tax table or statutory rate schedule for the taxpayer's filing status.
- Apply credits and rebates allowed under New Mexico law.
- Compare final state tax with withholding and estimated payments already made.
A New Mexico return should use the same filing status used on the federal return. The state does not allow a taxpayer who filed jointly federally to switch to married filing separately solely for New Mexico.
New Mexico Low- and Middle-Income Exemption
New Mexico provides a low- and middle-income exemption that can reduce taxable income for qualifying taxpayers.
The current Department guidance describes a maximum exemption of $2,500 for each qualified exemption. Eligibility and the amount depend on federal adjusted gross income and filing status.
| Filing Status | Current FAGI Eligibility Limit Listed by TRD |
|---|---|
| Single | $36,667 or less |
| Married Filing Separately | $27,500 or less |
| Married Filing Jointly / Qualifying Surviving Spouse / Head of Household | $55,000 or less |
Taxpayers should use the final 2026 PIT-1 instructions for the exact inflation-adjusted exemption calculation applicable to the 2026 return.
Source: New Mexico Personal Income Tax Overview
New Mexico Working Families Tax Credit
New Mexico offers a refundable Working Families Tax Credit for qualifying taxpayers with earned income.
Current Taxation and Revenue Department guidance states that the credit equals 25% of the federal Earned Income Tax Credit under the current state rule. New Mexico also provides expanded eligibility in certain situations beyond the federal identification-number and age limitations.
Because the federal EITC amount and income limits change by tax year, the final 2026 credit should be calculated using the 2026 PIT instructions and the applicable federal EITC.
Source: New Mexico Personal Income Tax Overview
New Mexico Child Tax Credit
New Mexico provides a refundable child tax credit that varies by adjusted gross income and is indexed under state law.
The credit is available for qualifying children as defined by federal rules, subject to New Mexico residency and income requirements. Lower-income households receive the largest per-child credit while the amount phases down as adjusted gross income rises.
Because the credit is inflation-adjusted, use the final 2026 PIT-1 instructions for the exact 2026 per-child amounts rather than carrying forward the prior-year table.
Source: New Mexico Child Tax Credit
Does New Mexico Tax Social Security Benefits?
Most qualifying New Mexico seniors can exclude Social Security benefits from New Mexico personal income tax when income is below the state's exemption thresholds.
| Filing Status | Social Security Exemption Income Limit |
|---|---|
| Single | Under $100,000 |
| Married Filing Jointly / Head of Household / Surviving Spouse | Under $150,000 |
| Married Filing Separately | Under $75,000 |
Taxpayers above the exemption threshold should review the current PIT adjustment instructions because the full exemption may not apply.
Source: New Mexico Social Security Income Tax Exemption
Who Must File a New Mexico Personal Income Tax Return?
New Mexico residents and individuals with New Mexico-source income generally must file Form PIT-1 when they are required to file a federal income tax return.
Residents may also file to claim a refund of New Mexico withholding or refundable credits. Nonresidents can have a filing requirement when they earn income from employment, business or property in New Mexico.
Part-year, first-year and nonresident taxpayers use the residency and allocation rules in the PIT-1 instructions to determine the amount subject to New Mexico tax.
Source: New Mexico Personal Income Tax Overview
New Mexico Withholding vs. Final Income Tax
New Mexico wage withholding is an estimate of state income tax liability collected during the year. Final tax is determined on Form PIT-1.
The amount withheld can differ from annual liability because the return applies the taxpayer's actual filing status, income, deductions, exemptions, credits and rebates.
To estimate state withholding at the paycheck level, use the New Mexico Paycheck Calculator.
When Are New Mexico Estimated Tax Payments Required?
New Mexico estimated tax rules apply when withholding is not sufficient to cover the required annual payment.
The state calculates the required annual payment as the lesser of 90% of current-year tax or 100% of prior-year tax when a full 12-month prior-year return was filed. If the difference between tax on the return and total withholding plus estimated payments is more than $1,000, the Department determines whether an underpayment penalty applies.
| Estimated Tax Element | New Mexico Rule |
|---|---|
| Current-year safe-harbor reference | 90% of current-year tax |
| Prior-year safe-harbor reference | 100% of prior-year tax when applicable |
| Underpayment review threshold | More than $1,000 remaining after estimated payments and withholding |
| Typical due dates | April 15, June 15, September 15 and January 15 |
Source: New Mexico Estimated Payments
Frequently Asked Questions
What Is the Highest New Mexico Income Tax Rate for 2026?
The highest New Mexico individual marginal income tax rate is 5.9%.
What Is the Lowest New Mexico Income Tax Rate for 2026?
The lowest marginal rate in the current statutory schedule is 1.5%.
Does New Mexico Use Federal AGI?
Yes. New Mexico personal income tax starts with federal adjusted gross income then applies state adjustments, deductions, exemptions, credits and rebates.
Does New Mexico Have a Low-Income Tax Exemption?
Yes. New Mexico has a low- and middle-income exemption with a maximum amount of $2,500 per qualifying exemption under current Department guidance, subject to income limits and tax-year instructions.
Does New Mexico Tax Social Security?
Most qualifying seniors can exclude Social Security benefits when income is below the state's specified thresholds.
Is New Mexico Withholding the Same as Final Income Tax?
No. Withholding is a payment made during the year. Final tax is calculated on the PIT-1 return.