What are New Mexico's income tax brackets?

New Mexico uses five marginal brackets in 2024/2025: 1.5%, 3.2%, 4.7%, 4.9% and a top rate of 5.9%. The 5.9% rate applies to single filers with taxable income above roughly 210,000 dollars, or married-jointly above about 315,000.

Does New Mexico use my federal AGI?

Yes. New Mexico's return starts from your federal adjusted gross income, then subtracts the standard deduction (which conforms to the federal amount) and any state exemptions before applying the brackets.

What standard deduction does New Mexico allow?

New Mexico conforms to the federal standard deduction, so it is about 15,000 dollars for single filers and 30,000 for married filing jointly in 2025. The calculator subtracts this before applying the brackets.

Are there credits that lower my New Mexico tax?

Yes. New Mexico offers a low- and middle-income tax exemption, a working families tax credit, and others. Enter your total nonrefundable credits in the optional field to subtract them from the computed tax.

Does this include federal tax?

No. This tool calculates only New Mexico state income tax. Use the New Mexico paycheck calculator if you also want federal income tax and FICA included in a take-home estimate.

New Mexico Income Tax Calculator

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New Mexico levies a graduated state income tax with five brackets running from 1.5% up to a top rate of 5.9%. Because the state starts from your federal AGI and conforms to the federal standard deduction, the calculation is straightforward once you know your income and filing status. This tool computes your New Mexico state tax only and shows both your effective rate and the marginal bracket you land in.

How it works

The calculation mirrors the New Mexico PIT return:

Start from federal AGI. Enter your federal adjusted gross income.
Subtract the standard deduction. New Mexico conforms to the federal amount (about $15,000 single, $30,000 married filing jointly in 2025), giving your New Mexico taxable income.
Apply the graduated brackets. The progressive rates of 1.5%, 3.2%, 4.7%, 4.9% and 5.9% are applied to successive income bands — only the portion of income within each band is taxed at that band’s rate.
Subtract credits. Any nonrefundable credits you enter reduce the computed tax, but not below zero.

Tips and notes

The brackets are marginal: a single filer with $60,000 AGI does not pay 4.9% on the whole amount — only the slice above the 4.7% threshold is taxed at the higher rate, which is why the effective rate is lower than the marginal rate.
New Mexico offers a low- and middle-income exemption and a working-families tax credit that can meaningfully cut the bill for lower earners; enter those in the credits field.
This estimate excludes federal income tax and FICA. For a full take-home figure, pair it with the New Mexico paycheck calculator, which layers in federal tax and payroll deductions.