New Mexico Income Tax Guide for 2026

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 $16,100 for single filers and dependent exemptions of $4,000.

Income Tax Rates

Single Filers

Income RangeTax Rate
Up to $5,4991.5%
$5,500 - $16,4993.2%
$16,500 - $33,4994.3%
$33,500 - $66,4994.7%
$66,500 - $209,9994.9%
$210,000+5.9%

Married Filing Jointly

Income RangeTax Rate
Up to $7,9991.5%
$8,000 - $24,9993.2%
$25,000 - $49,9994.3%
$50,000 - $99,9994.7%
$100,000 - $314,9994.9%
$315,000+5.9%

Capital Gains Tax

Capital gains are taxed at the same rates as ordinary income.

Deductions & Exemptions

TypeAmount
Standard Deduction (Single)$16,100
Standard Deduction (Married Filing Jointly)$32,200
Dependent Exemption$4,000

Additional Information

  • Six-bracket schedule (1.5% to 5.9%) enacted by HB 252 (2024) applies to taxable years beginning on or after January 1, 2025 and is unchanged for 2026
  • Standard deduction follows the federal standard deduction (2026: $16,100 single / $32,200 married filing jointly)
  • 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

Loading interactive chart...

Sources

Compare multiple states

Ready to see how federal and state taxes compare for your specific situation? Try our interactive comparison tool.

Start comparing

Last updated: September 15, 2026

Found something wrong? Report inaccurate data