Counties can levy an additional sales tax of no more than 9.0622%.
Current average sales tax (with local taxes included): 7.383%
Common Exceptions at State Level:
Prescription Medicine: Exempt
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: Five brackets from 1.7% to 5.9% (highest bracket on income greater than $210,000)
Standard deduction: Same as federal. Single filing Status: $12,950/Married Filing Jointly: $25,900
Personal Exemption Allowance: $4,000 for all but one dependent
Itemized Deductions Allowed?: Yes, subject to limitations
Social Security: Exempt but with a cap of $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*
Active Duty Pay: Exempt
Military Retirement Pay: Up to $10,000 exempt for tax year 2022, $20,000 for tax year 2023, and $30,000 for tax years 2024-26.*
Military Disability Pay: Exempt
VA Disability Dependency & Indemnity Compensation Benefits: Exempt
SBP/SSBP/RCSBP/RSFPP: Taxable at ordinary income tax rates*
Income Tax Comments: *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 10% of the federal earned income tax credit, and low- and middle-income taxpayers may receive an income exemption up to $2,500 if income less than $36,667; $55,000 if married filing jointly.
Local municipalities average .80% 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 Spouse: Exemption of up to $4,000 of assessed value if meet certain requirements.
Disabled Veterans/Surviving Spouse: 100% tax credit if 100% service-linked disability.