New Mexico Income Tax Calculator 2026

New Mexico Income Tax: Graduated Brackets Up to 5.9%

New Mexico uses a progressive income tax system with 5 brackets. Rates range from 1.7% to 5.9%, with higher income taxed at higher rates. New Mexico exempts most Social Security income from state taxation.

Like federal taxes, New Mexico's system is marginal — only the income within each bracket is taxed at that bracket's rate. Combined with federal taxes (10%–37%), New Mexico residents can face a total marginal rate of up to 42.9% on their highest dollars of income.

New Mexico Tax Brackets for 2026 (Single Filer)

The New Mexico income tax brackets for single filers are:

• 1.7% on income from $0 to $5,500
• 3.2% on income from $5,500 to $11,000
• 4.7% on income from $11,000 to $16,000
• 4.9% on income from $16,000 to $210,000
• 5.9% on income over $210,000

Your marginal rate is the rate on your last dollar of income. Your effective rate (total tax divided by total income) is always lower because of the progressive structure.

Tips to Lower Your New Mexico Tax

Maximize pre-tax retirement contributions to reduce both federal and New Mexico taxable income. The 2026 401(k) limit is $24,500 ($32,500 with catch-up for age 50+). If New Mexico conforms to federal deductions, your standard deduction and itemized expenses also reduce your state tax liability.