State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families. Go to the Kiplinger Tax Map New Mexico Add to State Compare List | View List View State Compare List (0) selected | Compare up to 5 The Bottom Line Tax-Friendly New Mexico avoids some of the extremes of its neighbors. Unlike Texas, for example, it has an income tax with a top rate of 5.9%. But if you can hang in there until you're 100, your income taxes are waived altogether. Residents of the Land of Enchantment face fairly high sales taxes, countered by modest property taxes. 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)Beginning with the 2021 tax year, the top rate will be 5.9% on taxable income over $210,000 for single filers and over $315,000 for joint filers. Sales Tax 5.125% state levy. Localities can add as much as 4.313%, and the average combined rate is 7.83%, according to the Tax Foundation. New Mexico's tax is a gross receipts tax that covers most services.Groceries: ExemptClothing: TaxableMotor Vehicles: Exempt from ordinary sales tax, but taxable under special 4% excise taxPrescription Drugs: Exempt Real Property Taxes In New Mexico, the median property tax rate is $776 per $100,000 of assessed home value. Motor Fuel Taxes Gasoline: 18.88¢ per gallon. Diesel: 22.88¢ per gallon. Sin Taxes Cigarettes: $1.66 per packOther tobacco products: 12.5% of wholesale priceVapor products: $0.50 per cartridge for closed systems, 12.5% of wholesale price for nicotine liquidBeer: $0.41 per gallonWine: $1.70 per gallonLiquor: $6.06 per gallonMarijuana: 12% excise tax (rate gradually increased to 18% beginning July 1, 2025) Annual Car Taxes and Fees No annual vehicle tax or fee is imposed. Estate and Inheritance Taxes No estate or inheritance tax.