NEW MEXICO 529 PLAN · TAX YEAR 2026
New Mexico 529 tax deduction calculator
New Mexico lets you deduct the whole amount you contribute to New Mexico's 529 plan, with no dollar limit. A single filer with $75,000 of wages who contributes $5,000 saves $235 of New Mexico tax.
State tax saved
- New Mexico tax saved
- $235.00
- Deduction
- $5,000.00
- Deduction limit
- No limit
- New Mexico tax before
- $2,359.30
- New Mexico tax after
- $2,124.30
New Mexico tax saved by contribution
With $75,000 of wages and one beneficiary.
| Contribution | Single | Married filing jointly |
|---|---|---|
| $1,000 | $47 | $43 |
| $5,000 | $235 | $215 |
| $10,000 | $470 | $430 |
| $20,000 | $940 | $836 |
New Mexico 529 tax questions
Does New Mexico have a 529 tax deduction?
Yes. New Mexico lets you deduct the whole amount you contribute to New Mexico's 529 plan, with no dollar limit.
How much does a $5,000 529 contribution save in New Mexico?
$235 of New Mexico tax for a single filer with $75,000 of wages, and $215 for a married couple filing jointly with the same income.
Which 529 plans qualify for New Mexico's deduction?
Contributions to New Mexico's 529 program.
Is a 529 contribution deductible on the federal return?
No. Contributions to a 529 plan aren't deductible on the federal return. Earnings grow tax-free, and withdrawals for qualified education expenses aren't taxed; part of the earnings is taxed when withdrawals exceed those expenses.
What the calculator leaves out
The calculator assumes the contribution goes to a plan that qualifies for the state's benefit: the state's own plan unless the state accepts any 529 plan. Wages are the only income, and they stand in for the income a state tests against its limits. Per-beneficiary limits assume the contribution is split evenly. Federal tax does not change, because 529 contributions aren't federally deductible. Carryforwards of earlier contributions, recapture on nonqualified withdrawals and city or school district taxes are left out.