New Mexico Income Tax Guide for 2025
Overview
New Mexico uses a progressive income tax system with rates ranging from 1.5% to 5.9%. Capital gains are taxed as ordinary income. The state offers a standard deduction of $15,750 for single filers and dependent exemptions of $4,000.
Income Tax Rates
Single Filers
| Income Range | Tax Rate |
|---|---|
| Up to $5,499 | 1.5% |
| $5,500 - $16,499 | 3.2% |
| $16,500 - $33,499 | 4.3% |
| $33,500 - $66,499 | 4.7% |
| $66,500 - $209,999 | 4.9% |
| $210,000+ | 5.9% |
Married Filing Jointly
| Income Range | Tax Rate |
|---|---|
| Up to $7,999 | 1.5% |
| $8,000 - $24,999 | 3.2% |
| $25,000 - $49,999 | 4.3% |
| $50,000 - $99,999 | 4.7% |
| $100,000 - $314,999 | 4.9% |
| $315,000+ | 5.9% |
Capital Gains Tax
Capital gains are taxed at the same rates as ordinary income.
Deductions & Exemptions
| Type | Amount |
|---|---|
| Standard Deduction (Single) | $15,750 |
| Standard Deduction (Married Filing Jointly) | $31,500 |
| Dependent Exemption | $4,000 |
Additional Information
- Six-bracket schedule (1.5% to 5.9%) enacted by HB 252 (2024) first applies to taxable years beginning on or after January 1, 2025
- Standard deduction follows the federal standard deduction (2025: $15,750 single / $31,500 married filing jointly after the One Big Beautiful Bill Act)
- Deduction for certain dependents: $4,000 for each dependent after the first, available only to married filing jointly and head of household filers
- Age 100+ complete exemption from state tax
Charts
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Sources
The 2025 figures for New Mexico on this page were compiled from the following official government publications:
- New Mexico Legislature - House Bill 252 (2024), Section 7-2-7 NMSA 1978 individual income tax rates for taxable years beginning on or after January 1, 2025
- Instructions for 2025 PIT-1 New Mexico Personal Income Tax Return (line 12 federal standard deduction, line 13 deduction for certain dependents)
- IRS - One Big Beautiful Bill Act provisions: individuals and workers (2025 federal standard deduction)
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