NEW MEXICO INCOME TAX · TAX YEAR 2026
2026 New Mexico income tax calculator
Estimate New Mexico income tax with the 2026 brackets, dependent deduction, low- and middle-income exemption and child income tax credit, plus federal income tax and take-home pay.
Your estimate
New Mexico take-home pay by salary
Take-home pay is wages minus New Mexico tax, federal income tax, Social Security and Medicare. Paychecks split the annual estimate evenly; your actual withholding depends on your W-4 and pay schedule.
| Salary | State tax | Take-home pay | Every two weeks |
|---|---|---|---|
| $50,000 | $1,184 | $41,171 | $1,583 |
| $75,000 | $2,359 | $59,233 | $2,278 |
| $100,000 | $3,569 | $75,611 | $2,908 |
| $150,000 | $6,019 | $107,772 | $4,145 |
| $200,000 | $8,469 | $140,458 | $5,402 |
New Mexico tax brackets for 2026
New Mexico taxes income at six rates from 1.5% to 5.9% under House Bill 252 of 2024, which took effect in 2025. Heads of household use the joint brackets. New Mexico starts from federal AGI and subtracts the federal standard deduction.
| Rate | Taxable income |
|---|---|
| 1.5% | Up to $5,500 |
| 3.2% | Over $5,500 through $16,500 |
| 4.3% | Over $16,500 through $33,500 |
| 4.7% | Over $33,500 through $66,500 |
| 4.9% | Over $66,500 through $210,000 |
| 5.9% | Over $210,000 |
| Rate | Taxable income |
|---|---|
| 1.5% | Up to $8,000 |
| 3.2% | Over $8,000 through $25,000 |
| 4.3% | Over $25,000 through $50,000 |
| 4.7% | Over $50,000 through $100,000 |
| 4.9% | Over $100,000 through $315,000 |
| 5.9% | Over $315,000 |
| Rate | Taxable income |
|---|---|
| 1.5% | Up to $4,000 |
| 3.2% | Over $4,000 through $12,500 |
| 4.3% | Over $12,500 through $25,000 |
| 4.7% | Over $25,000 through $50,000 |
| 4.9% | Over $50,000 through $157,500 |
| 5.9% | Over $157,500 |
New Mexico income tax questions
Does New Mexico have a state income tax?
Yes. New Mexico taxes income at graduated rates from 1.5% to 5.9% for 2026.
How much is New Mexico income tax on $100,000?
A single filer with $100,000 in wages and no other income, 401(k) contributions or dependents owes about $3,569.10 in New Mexico income tax for 2026, 3.57% of wages. After federal income tax, Social Security and Medicare, take-home pay is about $75,610.90, or $2,908.11 every two weeks.
What is the New Mexico standard deduction for 2026?
New Mexico subtracts the 2026 federal standard deduction from federal AGI: $16,100 for single filers and married couples filing separately, $32,200 for married couples filing jointly, and $24,150 for heads of household. Joint filers and heads of household also deduct $4,000 for each dependent after the first. Filers with federal AGI up to $36,667 (single), $55,000 (joint or head of household) or $27,500 (separate) get a low- and middle-income exemption of up to $2,500 for each person on the return.
Does New Mexico tax Social Security?
Partly. New Mexico exempts all taxable benefits when federal AGI is $100,000 or less ($150,000 joint) and taxes all of them above that.
New Mexico Social Security tax rules
Does New Mexico tax retirement income?
Yes. New Mexico taxes pensions and 401(k) and IRA withdrawals at its regular rates, but exempts up to $30,000 of military retirement pay per retiree.
New Mexico retirement income tax for 2026
How does New Mexico tax capital gains?
As ordinary income, after a deduction of up to $2,500 of net capital gains, or 40% of up to $1 million of net capital gains from selling a New Mexico business. Long-term gains also get lower federal rates than this calculator applies to other income, so use the capital gains tax calculator for the federal side.
How this calculator works
The calculator starts from federal AGI and subtracts the federal standard deduction, $4,000 for each dependent after the first on joint and head of household returns, and the low- and middle-income exemption. That exemption is $2,500 per person, less 15% of AGI over $20,000 for single filers, 10% over $30,000 for joint filers and heads of household, or 20% over $15,000 for separate filers.
It then subtracts the child income tax credit for each child under 17, using the 2025 amounts by federal AGI: $637 up to $25,000, $424 up to $50,000, $212 up to $75,000, $106 up to $100,000, $79 up to $200,000, $53 up to $350,000 and $26 above that. Married couples filing separately each take half. New Mexico adjusts these amounts for inflation and has not yet published the 2026 table. The credit is refundable, but the estimate does not show any amount beyond the tax.
Worked example
A single filer with $75,000 in wages, no other income, no 401(k) contributions and no dependents has $58,900.00 of New Mexico taxable income and about $2,359.30 in New Mexico income tax, 3.15% of wages. After federal income tax of $7,670.00 and $5,737.50 in Social Security and Medicare, estimated take-home pay is $59,233.20, or $4,936.10 a month.
What this estimate excludes
The Working Families Tax Credit (a refundable share of the federal earned income credit), the low income comprehensive tax rebate, the child income tax credit for qualifying children 17 or older (entered as other dependents, they are not counted), the Social Security exemption, the capital gains deduction, the armed forces retirement exemption, itemized deductions and other rebates and credits.
New Mexico sources
- House Bill 252 (2024): rate schedules from 2025
- FYI-104, New Mexico withholding tax effective January 1, 2026
- 2025 PIT-1 instructions: dependent deduction and low- and middle-income exemption
- 2025 PIT-RC instructions: child income tax credit table
- 2025 PIT-ADJ instructions: Social Security, armed forces retirement and capital gains
Federal tax uses IRS Revenue Procedure 2025-32. Read the full assumptions and sources.