Your hub for New Mexico taxes: state income tax (1.7% to 5.9%), plus free calculators for take-home pay, self-employment tax, quarterly estimates, and salary conversion.
Last updated: May 2026 · Data: IRS, BLS, New Mexico Taxation and Revenue Department
New Mexico levies a state income tax (1.7% to 5.9%) that is withheld from wages on top of federal tax and FICA. New Mexico uses a Gross Receipts Tax (GRT) instead of a traditional sales tax. The state fully exempts Social Security benefits from income tax and has relatively low LLC formation costs.
| Tax | 2026 Rate / Detail |
|---|---|
| New Mexico State Income Tax | 1.7% to 5.9% |
| New Mexico State Sales Tax (base) | 4.875% |
| Federal Income Tax | 10% to 37% (progressive brackets) |
| Social Security | 6.2% on first $176,100 |
| Medicare | 1.45% on all wages (plus 0.9% above $200,000) |
| Federal Standard Deduction (Single / MFJ) | $15,000 / $30,000 |
| Minimum Wage | $12.00 / hour |
| State Tax Authority | New Mexico Taxation and Revenue Department |
New Mexico has a state income tax. The 2026 rate is 1.7% to 5.9%. This applies on top of federal income tax and FICA (Social Security and Medicare) withheld from your pay.
For 2026, New Mexico income tax is 1.7% to 5.9%. New Mexico uses a Gross Receipts Tax (GRT) instead of a traditional sales tax. The state fully exempts Social Security benefits from income tax and has relatively low LLC formation costs.
A New Mexico paycheck has federal income tax, New Mexico state income tax (1.7% to 5.9%), Social Security (6.2% up to $176,100), and Medicare (1.45%) withheld. Try the take-home pay calculator for a personalized net-pay estimate.
Yes. Self-employed workers in New Mexico generally make quarterly estimated payments to the IRS and to the state if they expect to owe tax. The quarterly estimated tax calculator estimates each payment and the due dates.
The New Mexico statewide base sales tax rate is 4.875%. Local jurisdictions may add their own rates on top of the state rate.