New Mexico State Income Tax Rates and Brackets

New Mexico operates a progressive state income tax system, which means the tax rate increases as a taxpayer’s income rises. This tax is a source of revenue for the state, funding public services such as education, infrastructure, and healthcare.

New Mexico Tax Rates and Brackets

For the 2024 tax year, which are filed in 2025, New Mexico’s income tax rates range from 1.7% to 5.9%. The specific income thresholds, or brackets, depend on a taxpayer’s filing status. These are marginal rates, meaning each rate only applies to the income within its specific bracket, not to your total income.

For single individuals, the 2024 tax rates are structured as follows:

• Income up to $5,500: 1.7%
• Income from $5,501 to $11,000: 3.2%
• Income from $11,001 to $16,000: 4.7%
• Income from $16,001 to $210,000: 4.9%
• Income over $210,000: 5.9%

The brackets for those who are married and filing separately are identical to the single filer brackets. For married couples filing jointly and qualifying widow(er)s, the income thresholds for each bracket are doubled.

Head of household filers have their own set of brackets:

• Income up to $8,000: 1.7%
• Income from $8,001 to $18,000: 3.2%
• Income from $18,001 to $24,500: 4.7%
• Income from $24,501 to $315,000: 4.9%
• Income over $315,000: 5.9%

For instance, a single filer with $40,000 in taxable income would pay 1.7% on the first $5,500, 3.2% on the next $5,500, 4.7% on the next $5,000, and 4.9% on the remaining income.

Determining Your New Mexico Taxable Income

To calculate New Mexico taxable income, a taxpayer begins with their federal adjusted gross income (AGI). From the federal AGI, you subtract certain New Mexico-specific deductions and exemptions to arrive at the final taxable income figure.

New Mexico’s standard deduction amounts are tied to the federal standard deduction. For the 2024 tax year, single filers and those married filing separately can claim a standard deduction of $14,600. Married couples filing jointly are entitled to a $29,200 standard deduction, and head of household filers can claim $21,900. Taxpayers may choose to itemize deductions if their total itemized amount exceeds their available standard deduction.

New Mexico also offers a low-and middle-income exemption of $2,500 for taxpayers whose federal AGI falls below certain thresholds. For single filers, the AGI must be $36,667 or less. For married couples filing jointly or head of household, the AGI must be $55,000 or less, and for those married filing separately, the AGI threshold is $27,500.

Certain types of income may also adjust your taxable income. For example, interest earned from U.S. government obligations is deductible. Conversely, interest income from municipal bonds issued by other states must be added back to your income. These adjustments are made on the New Mexico income tax return, Form PIT-1.

Filing and Paying Your New Mexico Income Tax

For the 2024 tax year, the deadline to file a paper return is April 15, 2025. Taxpayers who file and pay electronically have an extended deadline of April 30, 2025. If you cannot file by your deadline, you can request an extension, which moves the filing deadline to October 15, 2025. An extension to file is not an extension to pay, and any estimated tax owed must still be paid by the original deadline to avoid penalties and interest.

Taxpayers have several options for filing their state return. The most common method is electronic filing through the state’s online portal, the Taxpayer Access Point (TAP), which provides an immediate confirmation receipt. Alternatively, taxpayers can use approved tax preparation software or mail a paper return.

Electronic payments can be submitted through the TAP system, often via an electronic check from a bank account without a fee. Payments can also be made by credit card, though a third-party processing fee applies. A check or money order can be sent with a payment voucher, known as the PIT-PV, to the address specified on the voucher.

After filing, you can track the status of your return and any expected refund through the TAP portal. E-filed returns are processed much faster than paper returns, with refunds often issued within a few weeks. If you file a paper return, processing can take several weeks longer.