New Mexico State Tax Calculator (2026)

How New Mexico taxes income

New Mexico charges 1.5% to 5.9%. State tax is a separate calculation from your federal return rather than a share of it — New Mexico sets its own schedule and its own definition of taxable income.

• Top marginal rate: 5.9%, reached at $210,000 for a single filer
• Brackets: 6 graduated bands, starting at 1.5%
• Standard deduction: $16,100 single / $32,200 joint
• Personal exemption: $4,000 per dependent (not applied here)

Rate figures are as of January 1, 2026 and come from the published Tax Foundation compilation; they have not been independently checked against New Mexico Taxation and Revenue Department. States do change rates mid-year, so confirm a figure there before relying on it.

What catches people out in New Mexico

• New Mexico has 6 brackets for a single filer, running from 1.5% on the first dollar up to 5.9% above $210,000.
• The New Mexico standard deduction is $16,100 for a single filer and $32,200 for a couple filing jointly. It is a separate figure from the federal standard deduction and usually much smaller, so itemising is a decision you make once federally and again for the state.
• New Mexico includes the federal standard deduction in its income starting point (footnote o). In place of the suspended federal personal exemption it allows a $4,000 deduction for all but one of a filer's dependents (footnote jj).

What this estimate leaves out

Three things are deliberately outside this calculation, because they change more often than annually and a confident wrong number does real damage on a tax page.

• The personal exemption — $4,000 per dependent — is not applied, so the figure runs slightly high.
• Local and city income tax is not included. New York City is the significant one nationally.
• State-specific credits, subtractions and income addbacks are out of scope and can move the result either way.

If you have income in India, New Mexico is where treaty relief runs out

States are not parties to the India-US tax treaty, and a state credit for "taxes paid to other jurisdictions" almost always means other US states rather than other countries.

So NRO interest, Indian rental income or a gain on Indian shares can be taxed by New Mexico with no credit for the Indian tax deducted at source — even though Form 1116 largely neutralises that same tax federally.

The treatment is not uniform across states, so treat this as the general position rather than as New Mexico's confirmed one, and check the credit rules with New Mexico Taxation and Revenue Department before relying on relief.

Sources

• Tax Foundation — 2026 State Income Tax Rates and Brackets
• New Mexico Taxation and Revenue Department — the authority for New Mexico