Compare state tax rates and rules — on income, ordinary purchases, gas, sin products, property, and more — across the U.S. 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 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. And, hang in there until you’re 100 and your income taxes are waived altogether. Property taxes are modest, but sales taxes lean high. Sales Tax 5.13% state levy. Localities can add as much as 4.13%, and the average combined rate is 7.82%, 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). Effective tax rate: 3.45% for single filers, 4.6% for joint filers.Active-duty pay for service members is exempt. Motor Fuel Taxes Gasoline: $0.188 per gallon. Diesel: $0.2288 per gallon. Property Taxes In New Mexico, residents pay an average of $830 in taxes per $100,000 of assessed home value. Vehicle Taxes Motor vehicle excise tax due on purchase: 4%. Sin Taxes Cigarettes and little cigars: $2.00 per pack Other tobacco products: 25% of purchase priceVapor products: 12.5% wholesale price for open systems; $0.15 per cartridge for closed systemsBeer and hard cider: $0.41 per gallonWine: $1.70 per gallonLiquor: $6.06 per gallon Taxes On Wireless Service 13.49% Inheritance and Estate Taxes None. Oddball Tax If you are over 100 years old and are not a dependent, you’re exempt from state income tax. About our methodology