State Tax Guide · New Mexico · 2026
New Mexico Income Tax: Complete Employee Guide (2026)
Understand the modeled New Mexico withholding method, source-backed rates, deductions, and take-home pay examples for employees.
Does New Mexico have income tax?
New Mexico levies progressive state income-tax withholding on wages.
New Mexico tax rates
Sourced progressive single-filer withholding rates range from 1.7% to 5.9%.
Encoded single-filer rates: 1.7%, 3.2%, 4.7%, 4.9%, 5.9%
Official source: https://realfile.tax.newmexico.gov/FYI-104.pdf
Take-home pay examples
These examples use the calculator engine for a single filer paid biweekly with a standard W-4 and no pre-tax deductions.
| Annual salary | New Mexico withholding | Net annual | Net biweekly |
|---|---|---|---|
| $40,000 | $965 | $33,355 | $1,282.88 |
| $60,000 | $1,945 | $48,445 | $1,863.27 |
| $80,000 | $2,925 | $62,185 | $2,391.73 |
| $100,000 | $3,905 | $75,275 | $2,895.19 |
| $150,000 | $6,355 | $107,436 | $4,132.15 |
How to reduce New Mexico tax withholding
Traditional 401(k) contributions and HSA contributions are available as modeled pre-tax inputs in the calculator. State-specific HSA conformity is not encoded as a dedicated data field, so check current New Mexico guidance or consult a qualified tax professional before relying on HSA treatment.
The encoded default single-filer method includes a $14,600 standard deduction or pre-bracket deduction amount.
Key differences from federal withholding
Federal income-tax withholding is calculated separately using IRS Publication 15-T. New Mexico withholding follows the encoded state method described above, with its own rates, deductions, and documented limitations. Local wage taxes, where supported, are separate from the state amount.
New Mexico salary after taxes
Browse state-specific salary pages for common annual salaries from $40,000 to $200,000.
City guides for New Mexico
Explore engine-derived salary and hourly examples for cities in New Mexico.
Calculate your personalized New Mexico take-home pay.
Calculate your New Mexico take-home →Frequently Asked Questions
Does New Mexico have an income tax?
New Mexico levies progressive state income-tax withholding on wages.
What is the New Mexico income tax rate for 2026?
New Mexico uses sourced progressive single-filer rates ranging from 1.7% to 5.9% for the modeled withholding path.
How much New Mexico tax on $75,000?
For the modeled default single-filer path, estimated New Mexico withholding on a $75,000 salary is $2,680 per year, or $103.08 per biweekly paycheck.
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