New Mexico State Income Tax Overview
New Mexico (NM) state income tax rate: 5.9% (graduated rate system)
New Mexico Income Tax Brackets (2026)
1.7% on first $5,500 (single); 3.2% on $5,501–$11,000; 4.7% on $11,001–$16,000; 4.9% on $16,001–$210,000; 5.9% above $210,000
New Mexico has five graduated income tax brackets with a top rate of 5.9%. New Mexico taxes Social Security benefits for higher earners but excludes them for lower-income residents. The state has been expanding tax credits for low- and middle-income families.
Median Household Income in New Mexico
The median household income in New Mexico is $51,945. New Mexico has one of the lower median household incomes nationally, reflecting a rural economy with significant poverty alongside oil-and-gas wealth in the Permian Basin region. State government and federal installations are major employers.
How to Use This Calculator for New Mexico
- Enter your gross income and filing status
- The calculator applies New Mexico's graduated income tax rate of up to 5.9%
- Subtract your standard deduction and any applicable credits
- Review your estimated state and federal tax liability
Frequently Asked Questions
What is the New Mexico state income tax rate?
New Mexico has a graduated income tax with a top rate of 5.9%. 1.7% on first $5,500 (single); 3.2% on $5,501–$11,000; 4.7% on $11,001–$16,000; 4.9% on $16,001–$210,000; 5.9% above $210,000.
How does New Mexico's income tax compare to the national average?
New Mexico's top income tax rate of 5.9% applies to a graduated rate system. New Mexico has five graduated income tax brackets with a top rate of 5.9%. New Mexico taxes Social Security benefits for higher earners but excludes them for lower-income residents. The state has been expanding tax credits for low- and middle-income families.
What is the median household income in New Mexico?
The median household income in New Mexico is $51,945. New Mexico has one of the lower median household incomes nationally, reflecting a rural economy with significant poverty alongside oil-and-gas wealth in the Permian Basin region. State government and federal installations are major employers.
Is this state income tax calculator free to use for New Mexico?
Yes, this state income tax calculator is 100% free with no signup required. It includes New Mexico-specific tax rates and calculates your estimated state and federal tax liability instantly.