New Mexico Salary & Paycheck Calculators
Updated October 2024New Mexico employs a graduated income tax system with rates ranging from 1.7% to 5.9%, which can significantly impact your net income based on your earnings level. While more complex than some other states, New Mexico's tax code includes various deductions and exemptions that affect your paycheck.
New Mexico Income Tax Highlights
For single filers:
- 1.7% on the first $5,500 of taxable income
- 3.2% on taxable income between $5,501 and $11,000
- 4.7% on taxable income between $11,001 and $16,000
- 4.9% on taxable income between $16,001 and $210,000
- 5.9% on taxable income over $210,000
For married couples filing jointly:
- 1.7% on the first $8,000 of taxable income
- 3.2% on taxable income between $8,001 and $16,000
- 4.7% on taxable income between $16,001 and $24,000
- 4.9% on taxable income between $24,001 and $315,000
- 5.9% on taxable income over $315,000
These rates apply to residents on all sources of income and to non-residents on New Mexico-sourced income. The state allows for certain deductions and credits that can affect your taxable income.
New Mexico Calculators & Tools
Calculate Your Take-Home Pay
Input your income details and see how much you make after taxes and deductions.
Bonus Calculators
Find out how much your bonus will be taxed.
Net-to-Gross
Find out how much your gross pay should be for a specific take-home pay.
Withholding Forms
Specialty Calculators
Dual Scenario Hourly
Compare your take home pay in different hourly scenarios.
Dual Scenario Salary
Compare your take home pay in different salary scenarios.
401k Calculator
See how increasing your 401k contributions will affect your paycheck and your retirement savings.
Tax Tip Calculator
Determine your take home from tips after taxes
Key Points to remember about the New Mexico Paycheck Structure
- Progressive tax system with five brackets
- Standard deduction of $12,950 for single filers and $25,900 for married couples filing jointly (2023 figures)
- Personal exemption credit of $4,000 per person
- Working Families Tax Credit (WFTC) of 25% of the federal Earned Income Tax Credit for 2023
- Low-Income Comprehensive Tax Rebate (LICTR) for residents with modified gross income of $36,000 or less
Understanding these aspects of New Mexico's tax landscape is crucial for accurately estimating your net income and managing your finances effectively in the Land of Enchantment. While New Mexico's tax system is more detailed than some states, it's important to consider the various deductions and credits available to optimize your tax situation. It's worth noting that starting in the 2025 tax year, New Mexico will implement a new tax structure with six brackets, ranging from 1.7% to 5.9%. This change will result in lower tax liabilities for all New Mexico taxpayers, with the most significant benefits going to lower- and middle-income earners.
Learn more about the Payroll Process in New Mexico
Visit the New Mexico Payroll Guide page
Fun Facts
Known for its desert landscapes and rich Native American and Spanish history, New Mexico is a cultural hub with unique art and architecture. Santa Fe, the capital, is known for its thriving arts scene. The state is also famous for the annual Albuquerque International Balloon Fiesta.
