New Mexico tax summary for 2026
| Tax on wages | Graduated brackets |
|---|---|
| Starting point | Federal adjusted gross income |
| Rates (single) | 1.5% – 5.9% |
| Standard deduction | Single $16,100 · Married filing jointly $32,200 · Head of household $24,150 · Married filing separately $16,100 |
| Personal exemption | None |
| Federal income tax deduction | Not allowed |
| Employee payroll taxes | None |
| Local income taxes | None |
New Mexico income tax brackets 2026
Rates apply to New Mexico taxable income, after the deductions above.
| Rate | Single: income over | Married filing jointly: income over | Head of household: income over | Married filing separately: income over |
|---|---|---|---|---|
| 1.5% | $0 | $0 | $0 | $0 |
| 3.2% | $5,500 | $8,000 | $8,000 | $4,000 |
| 4.3% | $16,500 | $25,000 | $25,000 | $12,500 |
| 4.7% | $33,500 | $50,000 | $50,000 | $25,000 |
| 4.9% | $66,500 | $100,000 | $100,000 | $50,000 |
| 5.9% | $210,000 | $315,000 | $315,000 | $157,500 |
Worked example: $65,000, single, paid biweekly
Computed by the same engine as the calculator, with no pre-tax deductions.
| Line | Per paycheck | Annual |
|---|---|---|
| Gross pay | $2,500.00 | $65,000 |
| Federal income tax | $216.15 | $5,620 |
| Social Security | $155.00 | $4,030 |
| Medicare | $36.25 | $943 |
| New Mexico income tax | $72.67 | $1,889 |
| Take-home pay | $2,019.93 | $52,518 |
Effective tax rate 19.2%; tax on the next dollar earned 24.3%. New Mexico taxable income is $48,900.
Second example: $120,000, married filing jointly, two children
Take-home $101,664 a year ($3,910.17 biweekly). Federal income tax $5,640 after a $4,400 Child Tax Credit, Social Security and Medicare $9,180, New Mexico income tax $3,516.
How the New Mexico estimate is calculated
- Start from federal adjusted gross income — wages minus traditional 401(k) and Section 125 deductions.
- Subtract the New Mexico standard deduction for your filing status.
- Apply the brackets.
- Divide the annual total by your number of paychecks.
What this New Mexico calculator does not model
- Deduction for certain dependents (PIT-1 line 13): $4,000 for each dependent other than one, for head-of-household and married-filing-jointly filers (NMSA 7-2-39). Not modeled because the engine cannot exclude the first dependent.
- Low- and middle-income tax exemption (up to $2,500 per exemption; federal AGI at or below $36,667 single / $55,000 MFJ, HOH / $27,500 MFS)
- Exemption for taxpayers 65 or older or blind (up to $8,000, income-limited)
- Working families tax credit, New Mexico child tax credit and other rebates/credits
- Social Security income exemption and other PIT-ADJ deductions
Data notes
- Brackets from NMSA 7-2-7 (Laws 2024, ch. 67), applicable to tax years beginning on or after January 1, 2025, not indexed: single 1.5%/3.2%/4.3%/4.7%/4.9%/5.9% at $0/$5,500/$16,500/$33,500/$66,500/$210,000; MFJ, HOH and surviving spouses at $0/$8,000/$25,000/$50,000/$100,000/$315,000; married filing separately has its own schedule at $0/$4,000/$12,500/$25,000/$50,000/$157,500 (the previous file wrongly used the single schedule for MFS).
- Standard deduction: PIT-1 line 12 subtracts the federal standard (or itemized) deduction from federal Form 1040 line 12, so the 2026 federal amounts apply ($16,100 single/MFS, $32,200 MFJ, $24,150 HOH).
- Personal exemption removed: the previous file used the $4,000 FYI-104 WITHHOLDING allowance as a per-person exemption. New Mexico has no personal exemption for the taxpayer or spouse while the federal IRC 151 exemption amount is zero; it has only the dependent deduction and the low/middle-income exemption listed in notModeled.
Sources
- State income tax: NM TRD – Personal Income Tax Rates for tax years starting 2025 (NMSA 7-2-7 as amended by Laws 2024, ch. 67) (read 2026-10-07)
- State income tax: 2025 Form PIT-1 New Mexico Personal Income Tax Return (line 12 federal standard deduction; line 13 deduction for certain dependents) (read 2026-10-07)
- State income tax: Instructions for 2025 PIT-1 (read 2026-10-07)
- State income tax: New Mexico Personal Income Tax Overview – Taxation and Revenue Department (read 2026-10-07)
Federal figures come from the IRS and SSA; see the methodology page.
Compare nearby and similar states
Neighboring states: Arizona, Colorado, Oklahoma, Texas, Utah
States with a similar tax setup: California, Mississippi, Arkansas, Rhode Island, Vermont, South Carolina
See every state side by side in the salary comparison by state, or browse all state paycheck calculators.