Yes, New Mexico has a state income tax. Personal income is taxed on a progressive scale with five brackets running from 1.7% to 5.9%, and the income thresholds where each rate kicks in depend on your filing status. Residents pay on all of their income; non-residents pay only on income earned from New Mexico sources.
Tax Rates and Brackets by Filing Status
The rates themselves are the same for every filer: 1.7%, 3.2%, 4.7%, 4.9%, and 5.9%. Only the dollar thresholds change. And the tax is progressive, so only the income that falls inside a bracket is taxed at that bracket’s rate.
Single Filers (and Estates and Trusts)
- Up to $5,500: 1.7% of taxable income
- $5,501 to $11,000: $93.50 plus 3.2% of the amount over $5,500
- $11,001 to $16,000: $269.50 plus 4.7% of the amount over $11,000
- $16,001 to $210,000: $504.50 plus 4.9% of the amount over $16,000
- Over $210,000: $10,010.50 plus 5.9% of the amount over $210,000
These brackets have applied to tax years beginning on or after January 1, 2021.1Justia. New Mexico Statutes Section 7-2-7 – Individual Income Tax Rates
Married Filing Jointly, Heads of Household, and Surviving Spouses
- Up to $8,000: 1.7% of taxable income
- $8,001 to $16,000: $136 plus 3.2% of the amount over $8,000
- $16,001 to $24,000: $392 plus 4.7% of the amount over $16,000
- $24,001 to $315,000: $768 plus 4.9% of the amount over $24,000
- Over $315,000: $15,027 plus 5.9% of the amount over $315,000
Joint filers reach the top 5.9% rate at $315,000, compared with $210,000 for a single filer.1Justia. New Mexico Statutes Section 7-2-7 – Individual Income Tax Rates
Married Filing Separately
- Up to $4,000: 1.7% of taxable income
- $4,001 to $8,000: $68 plus 3.2% of the amount over $4,000
- $8,001 to $12,000: $196 plus 4.7% of the amount over $8,000
- $12,001 to $157,500: $384 plus 4.9% of the amount over $12,000
- Over $157,500: $7,513.50 plus 5.9% of the amount over $157,500
The thresholds are roughly half the joint figures, so a married couple filing separately will often owe more combined tax than if they had filed jointly.1Justia. New Mexico Statutes Section 7-2-7 – Individual Income Tax Rates
Who Owes New Mexico Income Tax
Under Section 7-2-2, you’re a resident if you’re domiciled in New Mexico—meaning the state is your permanent home—at any point during the tax year, unless you intentionally change your domicile to another state before year’s end.2Justia. New Mexico Statutes Section 7-2-2 – Definitions You’re also treated as a resident if you were physically present in the state for 185 days or more during the year, even if your permanent home is elsewhere.3New Mexico Taxation and Revenue Department. Personal Income Tax Information Overview
Residents pay New Mexico tax on all of their income. If you moved into or out of the state during the year, you’re a part-year resident: you report everything you earned while living in New Mexico, plus any New Mexico-source income earned during the months you lived elsewhere. Non-residents who neither keep a domicile in the state nor meet the 185-day test still owe tax on wages, business profits, rental income, and other earnings tied to New Mexico.3New Mexico Taxation and Revenue Department. Personal Income Tax Information Overview
How Taxable Income Is Figured
New Mexico uses your federal adjusted gross income from Form 1040 as the starting point. Because of that, the federal standard deduction or itemized deductions you already took are baked into the number you bring over.3New Mexico Taxation and Revenue Department. Personal Income Tax Information Overview
The state then requires certain additions and allows certain subtractions on Schedule PIT-ADJ. Interest and dividends from bonds issued by other states, for example, are exempt federally but must be added back for New Mexico. Interest earned on U.S. government obligations, which the state cannot tax, is subtracted.4New Mexico Taxation and Revenue Department. Instructions for 2022 PIT-1 New Mexico Personal Income Tax Return
Social Security Benefits
New Mexico exempts Social Security benefits from state income tax when income falls below set thresholds: $100,000 for single filers, $150,000 for joint filers and heads of household, and $75,000 for married individuals filing separately. Taxpayers under those limits can exclude their Social Security benefits entirely.5New Mexico Taxation and Revenue Department. Social Security Income Tax Exemption
Retirement Income Deduction for Seniors
Taxpayers aged 65 or older may deduct up to $8,000 of retirement income, but only if household AGI stays below $28,500 for a single filer, $51,000 for a married couple filing jointly, or $25,500 for a married individual filing separately.3New Mexico Taxation and Revenue Department. Personal Income Tax Information Overview
Dependent Deduction
Because federal AGI no longer carries a federal personal exemption, New Mexico provides its own deduction of $4,000 for each dependent beyond the first one claimed on the return. This partially offsets the exemption suspended by the Tax Cuts and Jobs Act.
Credits That Can Lower What You Owe
Several New Mexico credits are fully refundable, meaning you can receive money back even if your tax bill is zero.
Working Families Tax Credit
This credit is a percentage of the federal Earned Income Tax Credit you qualify for. If you have a qualifying child under age six, the credit is 30% of your federal EITC; for other eligible taxpayers, it is 20%. Any amount above your tax liability comes back to you as a refund.6New Mexico Legislature. HB0148 – Working Families Tax Credit
New Mexico Child Tax Credit
The state offers a refundable credit per qualifying child, phasing down as income rises. For the 2024 tax year, the credit runs from $622 per child for households with AGI of $25,000 or less down to $25 per child for households with AGI above $350,000.7New Mexico Taxation and Revenue Department. New Mexico Child Tax Credit The amounts may be adjusted for inflation in later years.
Low-Income Comprehensive Tax Rebate
The Low-Income Comprehensive Tax Rebate (LICTR) is available to residents whose modified gross income is $36,000 or less. Modified gross income is a state-specific calculation that counts all household income regardless of whether it is taxable federally. You must also have been physically present in New Mexico for at least six months during the year and cannot be claimed as a dependent on someone else’s return. The rebate is claimed on Form PIT-RC.3New Mexico Taxation and Revenue Department. Personal Income Tax Information Overview
Filing Deadline, Extensions, and Late Penalties
New Mexico personal income tax returns are due April 15, matching the federal deadline. If April 15 falls on a weekend or holiday, the deadline moves to the next business day.8New Mexico Taxation and Revenue Department. New Mexico to Begin Accepting Electronic Income Tax Returns
If you have a federal automatic extension, New Mexico honors it—no separate state request needed. If you need more time than the federal extension gives you, Form RPD-41096 requests a state-specific extension. An extension gives you more time to file, not to pay: any tax owed is still due April 15, and interest begins to accrue on unpaid balances after that date.9New Mexico Taxation and Revenue Department. Extension of Time to File
Filing or paying late brings a penalty of 2% of the tax due per month or partial month, up to 20%, when the lateness is due to negligence or disregard of filing rules. Interest accrues daily on any unpaid balance at a rate tied to the federal underpayment rate, which changes quarterly. As of early 2026, the annual interest rate is 7%.10New Mexico Taxation and Revenue Department. Penalty and Interest Rates Interest and penalties run at the same time, so filing on time—even if you can’t pay in full—avoids the late-filing penalty and holds your exposure to interest on the unpaid amount alone.