New Mexico Income Tax 2026
New Mexico has a graduated income tax for 2026. The standard deduction is $16,100 (single) / $32,200 (married filing jointly). Taxes wage income. Graduated 6-bracket schedule (1.5%/3.2%/4.3%/4.7%/4.9%/5.9%) enacted by HB 252 (Laws 2024, Ch. 67), effective Jan 1, 2025 and continuing into 2026 — bottom rate cut from 1.7% to 1.5% and a new 4.3% bracket added. Single thresholds: 5500/16500/33500/66500/210000. MFJ (and HoH) thresholds: 8000/25000/50000/100000/315000. NO local/city income taxes (NM funds locally via Gross Receipts Tax, not a wage tax). NM conforms to the FEDERAL standard deduction (taxpayer enters federal Form 1040 line 12 on PIT-1), so 2026 amounts equal the OBBBA-adjusted IRS figures: $16,100 single / $32,200 MFJ ($24,150 HoH). Note: outdated sources still cite $14,600/$29,200 (pre-2025) — those are wrong for 2026. Social Security: exempt for AGI under $100,000 single / $150,000 MFJ (phases out above). Armed forces retirement pay deduction up to $30,000. HB 252 capped the capital-gains deduction at the greater of $2,500 or 40% of gains.
New Mexico tax brackets (single, 2026)
| Taxable income | Rate |
|---|---|
| $0 - $5,500 | 1.50% |
| $5,500 - $16,500 | 3.20% |
| $16,500 - $33,500 | 4.30% |
| $33,500 - $66,500 | 4.70% |
| $66,500 - $210,000 | 4.90% |
| $210,000+ | 5.90% |
Tax on common incomes in New Mexico (2026, single)
| Income | State tax | Take-home |
|---|---|---|
| $20,000 | $59 | $18,022 |
| $25,000 | $191 | $22,006 |
| $30,000 | $351 | $25,934 |
| $35,000 | $538 | $29,765 |
| $40,000 | $753 | $33,567 |
| $45,000 | $968 | $37,370 |
| $50,000 | $1,184 | $41,171 |
| $55,000 | $1,419 | $44,953 |
| $60,000 | $1,654 | $48,736 |
| $65,000 | $1,889 | $52,518 |
2026 figures. Source: New Mexico Department of Revenue + Tax Foundation. Not tax advice.