Calculate your 2026 New Mexico state income tax — 4 brackets 1.7%–5.9%. NM is one of 9 states taxing Social Security (exempt below $100K/$150K). Low-income comprehensive tax rebate included.
New Mexico Income Tax 2026
New Mexico taxes income using four progressive brackets. The unique aspect is New Mexico's treatment of Social Security benefits — they are taxable but fully exempt if modified gross income is below $100,000 (single) or $150,000 (MFJ).
Tax Brackets
1.7% — $0 to $5,500 (single) / $8,000 (MFJ)
3.2% — $5,500–$11,000 (single) / $8,000–$16,000 (MFJ)
4.7% — $11,000–$16,000 (single) / $16,000–$24,000 (MFJ)
5.9% — Above $16,000 (single) / $24,000 (MFJ)
Standard Deduction: $13,850 single | $27,700 MFJ
Personal Exemption: $4,150 per person
Example: Single, $60,000, no SS
NM net income: $60,000 − $13,850 − $4,150 = $42,000
Bracket calc: $5,500×1.7% + $5,500×3.2% + $5,000×4.7% + $26,000×5.9%
= $93.50 + $176 + $235 + $1,534 = $2,038.50
Effective rate: $2,039 / $60,000 = 3.40%
Frequently Asked Questions
What are New Mexico's income tax brackets for 2026?
New Mexico has four tax brackets: 1.7% on income up to $5,500 (single) / $8,000 (MFJ), 3.2% on income from $5,500–$11,000 (single) / $8,000–$16,000 (MFJ), 4.7% on income from $11,000–$16,000 (single) / $16,000–$24,000 (MFJ), and 5.9% on income above $16,000 (single) / $24,000 (MFJ). These brackets are applied to New Mexico net income after standard deduction and personal exemptions.
Does New Mexico tax Social Security benefits?
Yes — New Mexico is one of 9 states that tax Social Security benefits. However, New Mexico provides an exemption for lower-income taxpayers: Social Security income is fully exempt if your modified gross income is $100,000 or below for single filers or $150,000 or below for married filing jointly. Above those thresholds, Social Security becomes taxable, which can significantly increase the effective tax rate for retirees with other income sources.
What is the New Mexico Low-Income Comprehensive Tax Rebate?
New Mexico's Low-Income Comprehensive Tax Rebate (LICTR) provides a credit to offset both income and gross receipts tax burden for lower-income New Mexicans. Eligibility requires income below $36,000 for single filers and head of household, or $50,000 for married filing jointly. Credit amounts vary from about $300–$700 depending on income and number of exemptions. The rebate is refundable, meaning it can exceed your tax liability.
Does New Mexico have a standard deduction?
New Mexico allows a standard deduction of $13,850 for single filers and $27,700 for married filing jointly (2026). These amounts are similar to federal standard deductions. New Mexico also allows personal exemptions of $4,150 per person. Taxpayers can choose to itemize New Mexico deductions if they exceed the standard deduction, but New Mexico itemized deductions differ somewhat from federal deductions.
How does New Mexico's overall tax burden compare to other Southwest states?
New Mexico's income tax (top 5.9%) is higher than Arizona (2.5%), Texas (0%), Nevada (0%), and Utah (4.5%), but lower than California (13.3%). New Mexico's gross receipts tax (similar to sales tax) is around 7–9%, which partly offsets its relatively moderate income tax. Overall, New Mexico's total tax burden is moderate for the Southwest region.