NEW MEXICO CAPITAL GAINS TAX · TAX YEAR 2026
New Mexico capital gains tax calculator
New Mexico deducts net capital gains up to $2,500 ($1,250 on a separate return), then taxes the rest as ordinary income at rates up to 5.9%; short-term gains get no deduction. On a $50,000 long-term gain with $75,000 of wages, a single filer owes $2,312 of New Mexico tax and $7,500 of federal income tax, $9,812 in all, and keeps $40,188.
Tax on your gain
- Total tax on the gain
- $9,812.30
- Federal income tax
- $7,500.00
- Net investment income tax
- $0.00
- New Mexico tax
- $2,312.30
- After-tax gain
- $40,187.70
- Effective rate
- 19.62%
- Gain New Mexico excludes
- $2,500.00
New Mexico tax by size of gain
What a single filer with $75,000 of wages owes on a long-term gain, and the state tax if the same gain were short-term. Federal tax includes the net investment income tax.
| Gain | Federal tax | State tax | State tax if short-term |
|---|---|---|---|
| $10,000 | $1,500 | $353 | $475 |
| $50,000 | $7,500 | $2,312 | $2,435 |
| $100,000 | $15,000 | $4,762 | $4,885 |
| $250,000 | $42,250 | $13,076 | $13,224 |
| $1,000,000 | $208,920 | $57,326 | $57,474 |
New Mexico capital gains tax questions
Does New Mexico tax capital gains?
Yes. New Mexico deducts net capital gains up to $2,500 ($1,250 on a separate return), then taxes the rest as ordinary income at rates up to 5.9%; short-term gains get no deduction.
How much New Mexico tax is due on a capital gain?
A single filer with $75,000 of wages owes $2,312 of New Mexico tax on a $50,000 long-term gain, 4.62% of the gain, and $13,076, 5.23%, on a $250,000 gain. Federal tax on the same gains is $7,500 and $42,250.
Does New Mexico tax short-term capital gains differently?
Yes. A $10,000 short-term gain owes $475 of New Mexico tax, against $353 on a long-term gain. Federal tax on it is $2,200, against $1,500.
How much capital gain does New Mexico exclude?
Up to $2,500 of net capital gain. Instead, 40% of up to $1 million of gain from selling a New Mexico business may be deducted.
What the calculator leaves out
- Instead, 40% of up to $1 million of gain from selling a New Mexico business may be deducted.
Federal tax stacks the gain on wages after the 2026 standard deduction, taxes a long-term gain at the long-term capital gains rates and a short-term gain at the ordinary brackets, and adds the net investment income tax. The gain is the only investment income. Capital losses and carryovers, qualified dividends, the collectibles and section 1250 rates, the alternative minimum tax and credits are left out; enter a home sale's gain after any federal exclusion.