New Mexico Income Tax Brackets 2026

New Mexico uses a progressive income tax system with 5 brackets.

State Tax

5.9%

Top marginal rate

COL Index

92

Below national avg

Median Income

$58,722

Household

Brackets

5

Progressive

New Mexico Tax Brackets

Income RangeMarginal Rate
$0$5,5001.70%
$5,500$11,0003.20%
$11,000$16,0004.70%
$16,000$210,0004.90%
$210,000and above5.90%

New Mexico State Tax at Different Income Levels

Gross IncomeState TaxEffective Rate
$50,000$2,1714.34%
$75,000$3,3964.53%
$100,000$4,6214.62%
$150,000$7,0714.71%
$200,000$9,5214.76%
$300,000$15,3215.11%

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Frequently Asked Questions about New Mexico Taxes

Does New Mexico have state income tax?

New Mexico has a progressive income tax system with rates ranging from 1.7% to 5.9% for 2026.

How much is federal tax in New Mexico?

Federal income tax in New Mexico is the same as in all other US states. For 2026, the federal brackets range from 10% to 37%, depending on your taxable income and filing status.

What is the cost of living in New Mexico?

The cost of living in New Mexico has an index of 92, where 100 is the national average. This means New Mexico is 8% cheaper than the average US state.