How Much Is New Mexico State Income Tax in 2026? 1.7%–5.9%

Quick Answer: New Mexico Income Tax at a Glance

New Mexico's top rate of 5.9% only hits income above $210,000 — most workers pay 4.9% or less on their top dollars. Social Security is exempt for most residents. Estimate your 2026 take-home pay below.

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How New Mexico taxes your income in 2026

New Mexico's five brackets for single filers run 1.5% on the first $5,500 of taxable income, 2.1% to $11,000, 3.2% to $16,000, 4.3% to $24,000, 4.7% to $38,000, 4.9% to $210,000, and 5.9% above that. Because the 4.9% bracket stretches all the way to $210,000, virtually all middle-class wages stay below the top rate. New Mexico starts from federal taxable income, so the federal standard deduction is already reflected.

Since 2022, New Mexico exempts Social Security benefits for single filers with income under $100,000 ($150,000 for couples) — covering most retirees. Instead of a sales tax, New Mexico levies a gross receipts tax on businesses that's passed on in prices; combined rates run 5%–9%+. There are no local income taxes. Retirees 65+ with modest incomes can also deduct up to $8,000 of other retirement income.

What this calculator includes (and excludes)

This estimate covers federal income tax, FICA, and New Mexico income tax using the 2026 brackets computed on federal taxable income. It does not model the Social Security exemption threshold, the senior deduction, itemized deductions, or credits such as New Mexico's low-income rebates. Figures are estimates for planning purposes, not tax advice.

Take-Home Pay by Income Level in New Mexico

The table below shows estimated annual take-home pay for a single filer with no credits or pre-tax contributions. It includes federal income tax, FICA, and New Mexico state income tax.

Gross Income	Federal Tax	FICA	NM State Tax	Take-Home Pay
$50,000	$3,820	$3,825	$1,382	$40,973
$75,000	$7,670	$5,738	$2,607	$58,986
$100,000	$13,170	$7,650	$3,832	$75,348
$150,000	$24,734	$11,475	$6,282	$107,509
$200,000	$36,734	$14,339	$8,732	$140,195

Estimated Tax Breakdown

Take-home $75,348

Federal

$13,170 13.2%

State

$3,832 3.8%

FICA

$7,650 7.6%

Net Pay

$75,348 75.3%

Frequently Asked Questions

What is the New Mexico income tax rate in 2026?

New Mexico has six brackets from 1.5% to 5.9%, but the 5.9% top rate only applies to taxable income above $210,000 (single). Most workers pay 4.9% or less on their marginal dollars.

Does New Mexico have local income taxes?

No. New Mexico municipalities and counties do not impose income taxes. Local revenue comes from the gross receipts tax added to prices.

Does New Mexico tax Social Security benefits?

Not for most people. Since 2022, benefits are exempt for single filers with income under $100,000 and couples under $150,000. Above those thresholds, benefits can be partially taxable.

How much is $75,000 after taxes in New Mexico?

A single filer earning $75,000 pays roughly $2,607 in New Mexico income tax and takes home about $58,986 per year after federal tax, FICA, and state tax, based on this calculator's 2026 estimates. See the example table above for details.

What is New Mexico's gross receipts tax?

It's a tax on business revenue rather than retail sales, but it gets passed through to consumers like a sales tax. Combined state and local rates typically run 5%–9%, depending on location.