Tool | August 2016

State-by-State Guide to Taxes

Compare state tax rates and rules -- on income, ordinary purchases, gas, "sin" products, property, and more -- across the U.S.

New Mexico

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The Bottom Line
Map of New Mexico

Tax-Friendly

Personal income tax rates top out at 4.9% on taxable income over $16,000 for single filers and over $24,000 for married couples filing jointly. Property taxes are also low.

Sales Tax

5.125% state levy. Localities can add as much as 3.56%, and the average combined rate is 7.51%, according to the Tax Foundation. New Mexico's tax is a gross receipts tax that covers most services.

Income Tax Range

Low: 1.7% (on up to $5,500 of taxable income for single filers and $8,000 for joint filers)

High: 4.9% (on taxable income over $16,000 for single filers and over $24,000 for married couples filing jointly)

See Kiplinger.com’s Retiree Tax Map to learn how New Mexico taxes Social Security income and other forms of retirement income.

Motor Fuel Taxes

Gasoline: $0.19 per gallon.
Diesel: $0.23 per gallon.

Property Taxes

The median property tax on New Mexico's median home value of $158,400 is $1,197.

See Kiplinger.com’s Retiree Tax Map for details on tax breaks for seniors in New Mexico.

Vehicle Taxes

Motor vehicle excise tax due on purchase: 3% (well below general sales tax rate).

Sin Taxes

Beer and hard cider: $0.41 per gallon
Wine: $1.70 per gallon
Liquor: $6.06 per gallon

Cigarettes: $1.66 per pack (unless bought in a carton with 25 packs; then it’s $2.08 per pack)
Other tobacco products: 25% of purchase price

Travel Taxes

Hotel: No statewide lodging tax but municipalities may levy one. Sales tax is also due.

Rental cars: Taxed 5% by the state plus $2 per day. Sales tax is also collected.

Taxes On Wireless Service

11.2%

Inheritance and Estate Taxes

There is no inheritance tax or estate tax.

Oddball Tax

If you are over 100 years old and are not a dependent, you're exempt from state income tax.

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