New Mexico Income Tax Guide

1.5% to 5.9% bracketsThe restructured schedule effective in 2025 remains the basis for 2026 planning.

Federal deduction starts the estimateNew Mexico taxable income follows federal AGI and supported federal deductions with state adjustments.

Refundable child credit variesThe state child credit changes with adjusted gross income and qualifying-child eligibility.

Updated August 24, 2026

Official SourcesNew Mexico rate law NM income-tax overview New Mexico PIT forms NM child credit IRS

New Mexico rate law NM income-tax overview New Mexico PIT forms NM child credit IRS

Calculate for New Mexico

Federal AGI is simplifiedSupported household income is reduced by the 2026 federal standard deduction before the New Mexico rate schedule.

Status schedules are modeled directlyJoint/head, single, and separate filers use the six brackets enacted for tax years beginning in 2025.

The deduction is status-basedThe calculator uses $16,100 single/separate, $32,200 joint, and $24,150 head of household.

State credits are excludedThe refundable child credit and working-families credit require eligibility and income details beyond the current form.

Retirement exemptions are outsideAge, income type, and AGI limits determine Social Security and retirement subtractions.

Is New Mexico's lowest rate still 1.7%?No. The restructured schedule begins at 1.5% for tax years 2025 and later.

Does 5.9% apply to all income?No. It is the marginal rate above $210,000 single or $315,000 joint/head taxable income.

Is the New Mexico child credit included?No. Its per-child amount changes across AGI bands and requires state eligibility review.

Is Social Security always taxable?No. New Mexico provides an income-limited exemption, but the calculator cannot identify the taxable benefit amount.

Is a local New Mexico wage tax added?No broad local individual wage tax is added automatically.

Is this Form PIT-1?No. It is a planning estimate without every adjustment, rebate, or credit.

New Mexico Income Tax Guide

How New Mexico taxes work

Common New Mexico tax questions