Counties can levy an additional sales tax of no more than 8.812%.
Current average sales tax (with local taxes included): 7.3%
Common Exceptions at State Level:
Groceries: Exempt
Prescription Medicine: Exempt
Vehicle Tax: 4%
Gasoline Tax: 37.28 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 47.28 cents/gallon (Includes all state, local, and federal taxes)
New Mexico doesn't have a sales tax, per se; its “gross receipts tax” is imposed on businesses, but is almost always passed on the buyer.
Personal Income Tax
Personal Income Tax Rate Range: Six brackets from 1.7% to 5.9% (highest bracket on income greater than $210,000, or $315,000 if married filing jointly)
Standard deduction: Same as federal. Single filing Status: $15,000
Personal Exemption Allowance: $4,150 for all but one dependent
Itemized Deductions Allowed?: Yes, subject to limitations
Retirement Income
Social Security: Exempt if Adjusted Gross Income is less than $100,000 ($150,000 if married filing jointly)
IRAs: Taxable at ordinary income tax rates*
401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates*
Private pensions: Taxable at ordinary income tax rates*
Public Pensions: Taxable at ordinary income tax rates*
Military Pay
Active Duty Pay: Exempt to the extent included in federal AGI
Military Retirement Pay: Up to $30,000 exempt for tax year 2024 and beyond.
Military Disability Pay: Exempt
VA Disability Dependency & Indemnity Compensation Benefits: Exempt
SBP/SSBP/RCSBP/RSFPP: Up to $30,000 exempt for tax year 2024 and beyond.
*A retirement income exemption of $8,000 is available, subject to income restrictions, for taxpayers 65 and over. Additional exemptions and credits for seniors are available based on income restrictions or high medical expenses. If a taxpayer is over 100 and not a dependent, there are no income taxes due. All taxpayers may be eligible for a tax credit equal to 25% of the federal earned income tax credit if claimed on your federal return.
Property Tax
Local municipalities average .72% of the property's assessed value.
Calculation of assessed value: One-third of fair market value.
Relief programs for:
Owner-Occupied: Assessed value may not increase more than 3% annually.
Head of Family: Up to $2,000 of assessed value exempt.
65 and Over: If income less than $16,000, tax credit of up to $250. May be eligible for deferral based on certain requirements.
Veterans/Surviving Spouses: Exemption of up to $10,000 (adjusted annually for inflation) of assessed value if meet certain requirements.
Premium and Life members can consult our financial staff for education and consumer advice.
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