Tool | Updated October 2018

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

Mixed Tax Picture

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. But many residents of the Land of Enchantment, particularly those with dependent children, will see their 2018 state taxes rise as a result of the new federal tax law. New Mexico’s tax code is tied to federal definitions, so the elimination of the personal exemption at the federal level means no more exemption at the state level. The state legislature ended its 30-day session in 2018 without addressing this.

Property taxes are modest, but sales taxes lean high.

Sales Tax

5.125% state levy. Localities can add as much as 4.13%, and the average combined rate is 7.78%, 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).
Active-duty pay for service members is exempt.

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 $161,600 is $1,232.

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

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

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

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

12.51%

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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