New Mexico income tax brackets for 2026
New Mexico taxes wages at rates from 1.5% to 5.9%. The rates apply to taxable income: your wages after pre-tax deductions and the deductions and exemptions shown below.
| Single: taxable income | Rate |
|---|---|
| Up to $5,500 | 1.5% |
| $5,500 to $16,500 | 3.2% |
| $16,500 to $33,500 | 4.3% |
| $33,500 to $66,500 | 4.7% |
| $66,500 to $210,000 | 4.9% |
| Over $210,000 | 5.9% |
| Married filing jointly: taxable income | Rate |
|---|---|
| Up to $8,000 | 1.5% |
| $8,000 to $25,000 | 3.2% |
| $25,000 to $50,000 | 4.3% |
| $50,000 to $100,000 | 4.7% |
| $100,000 to $315,000 | 4.9% |
| Over $315,000 | 5.9% |
Heads of household use the married filing jointly brackets.
Deductions, exemptions and credits
| Standard deduction | $16,100 single · $32,200 married · $24,150 head of household |
|---|---|
| Dependent exemption | $4,000 each |
- New Mexico restructured its brackets in 2025, adding a 1.5% bottom rate and six brackets up to 5.9%.
- It uses the federal standard deduction and gives a $4,000 deduction for each dependent after the first.
No New Mexico payroll deductions
New Mexico does not take disability, paid leave or unemployment contributions from employees. State unemployment insurance is paid by employers, so the only deductions from a New Mexico paycheck are federal taxes, New Mexico income tax and anything you choose, such as 401(k) contributions or health insurance.
Local income taxes in New Mexico
New Mexico cities and counties do not tax wages.
Example: $60,000 salary in New Mexico
A single filer earning $60,000 a year, paid every two weeks, with a standard 2026 W-4 and no 401(k) or health deductions:
| Every two weeks | Per paycheck | Per year |
|---|---|---|
| Gross pay | $2,307.69 | $60,000.00 |
| Federal income tax | -$193.08 | -$5,020.00 |
| Social Security (6.2%) | -$143.08 | -$3,720.00 |
| Medicare (1.45%) | -$33.46 | -$870.00 |
| New Mexico income tax | -$63.63 | -$1,654.30 |
| Take-home pay | $1,874.45 | $48,735.70 |
New Mexico income tax is about $1,654.30 a year here, 2.76% of gross pay. All taxes together take 18.8% of pay. Federal withholding is the 2026 single schedule: $60,000 less the $8,600 allowance gives $51,400, taxed at $1,240 plus 12% above $19,900, or $5,020 a year.
Take-home pay in New Mexico at different salaries
Yearly take-home pay for a single filer in New Mexico, paid every two weeks, with no pre-tax deductions or local tax. For a married couple filing jointly on $120,000, take-home pay is about $97,264 a year (18.9% in taxes).
| Salary | New Mexico tax | Take-home per year | Per paycheck |
|---|---|---|---|
| $30,000 | $351 | $25,934 | $997.45 |
| $45,000 | $968 | $37,370 | $1,437.30 |
| $60,000 | $1,654 | $48,736 | $1,874.45 |
| $80,000 | $2,594 | $62,516 | $2,404.45 |
| $100,000 | $3,569 | $75,611 | $2,908.11 |
| $150,000 | $6,019 | $107,772 | $4,145.07 |
| $250,000 | $11,158 | $172,024 | $6,616.30 |
How the New Mexico paycheck estimate works
Federal income tax follows IRS Publication 15-T for 2026: your paycheck is annualized, an allowance for the standard deduction is taken off, the 2026 withholding schedule for your filing status is applied, and W-4 credits and extra withholding are added back per paycheck. Social Security is 6.2% of wages up to $184,500 and Medicare 1.45%, plus 0.9% on wages over $200,000.
New Mexico tax is estimated for the whole year: wages after pre-tax deductions, less the standard deduction, less exemptions, run through the brackets above, then divided by the number of paychecks.
New Mexico tax = Brackets(Wages − pre-tax deductions − standard deduction − exemptions)