New Mexico Income Tax Calculator
Calculate your 2026 New Mexico state income tax. See your bracket breakdown, effective rate, and how New Mexico compares to neighboring states.
Your Tax Inputs
Effective Rate vs Neighboring States
New Mexico Tax Brackets (2026)
Federal vs New Mexico Tax Comparison
Estimate for your income and filing status. Federal uses 2026 brackets and standard deduction.
| Item | Federal | New Mexico | Total |
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About New Mexico state taxes (Tax year 2026)
New Mexico has a progressive income tax with 5 brackets ranging from 1.7% to 5.9%. The state uses a gross receipts tax (GRT) instead of a traditional sales tax, which applies more broadly to services.
Groceries are exempt from gross receipts tax. Prescription drugs are exempt. The GRT applies to many services that traditional sales taxes do not cover.
New Mexico's top rate of 5.9% is above the national average. Its gross receipts tax applies more broadly than traditional sales taxes, increasing the effective tax on services.
Filing in New Mexico: returns for tax year 2026 are administered by the New Mexico Taxation and Revenue Department and are generally filed in 2027 by the federal April deadline unless New Mexico declares a state-specific extension. Tax type on this return: Progressive. Top marginal rate: 5.9%. State sales-tax rate: 5.0%. For the most current contact info, see the Federation of Tax Administrators directory.
New Mexico — What is New Mexico's income tax rate? New Mexico has 5 income tax brackets with rates from 1.7% to 5.9%. The top rate applies to income over $210,000 for single filers.
New Mexico — What is New Mexico's gross receipts tax? Instead of a traditional sales tax, New Mexico levies a gross receipts tax (GRT) on businesses. The state rate is 5.0%, but with local add-ons, combined rates average 7.72%.
New Mexico — Does New Mexico tax groceries? No, groceries (unprepared food) have been exempt from New Mexico's gross receipts tax since 2023.
How this page is reviewed
| Risk tier | High YMYL |
|---|---|
| Author | Calculover Editorial Team Tax education |
| Editorial owner | Calculover Tax & Payroll Desk State-tax methodology owner |
| Reviewer | Calculover Editorial Review Government-source and limitation review |
| Last reviewed | 2026-05-14 |
| Last verified | 2026-05-14 |
| Data effective date | 2026-01-01 |
| Jurisdiction | New Mexico |
Methodology
State-tax per-state pages apply the published 2026 bracket schedule, standard deduction, and filing-status rules for the listed jurisdiction. Federal AGI inputs are mapped to state taxable income before bracket math runs. Local taxes (NYC, Philadelphia, certain Ohio cities) are flagged but not embedded in the base estimate.
Assumptions
- The user enters federal AGI, filing status, and state-specific adjustments as provided.
- Brackets, standard deductions, and credits reflect the 2026 statutory values published by the state Department of Revenue and the Tax Foundation.
- Local income taxes and reciprocity-agreement situations are noted but not auto-applied.
Limitations
- These pages do not predict mid-year legislative changes, rate adjustments, or new local tax assessments.
- Multi-state filers, convenience-of-employer rules, and special-circumstance credits require additional tax-professional analysis.
Sources
- State Tax Rates, Federation of Tax Administrators
- State Individual Income Tax Rates and Brackets, Tax Foundation
- State Government Resources, Internal Revenue Service
Professional guidance: This page is for state-tax education only and is not tax, legal, financial, or investment advice. State tax decisions and multi-state filing should be reviewed with a CPA or enrolled agent licensed in the relevant states.