New Mexico Income Tax
New Mexico has a progressive income tax with rates ranging from 1.7-5.9%. Lower income earners pay the lower rate, with the top rate applying to the highest bracket.
New Mexico Sales Tax
The state sales tax rate in New Mexico is 5%. With an average local sales tax of 2.72%, the combined average sales tax rate is 7.72%.
New Mexico Property Tax
The effective property tax rate in New Mexico is 0.67%. With a median home value of $243,200, the median annual property tax bill is $1,557 ($130/month).
Corporate & Business Taxes
The corporate tax rate in New Mexico is 4.8-5.9%.
Other Taxes in New Mexico
| Tax Type | Rate / Amount |
|---|---|
| Gas Excise Tax | $0.19/gallon |
| Cigarette Tax | $2.00/pack |
| Estate Tax | No |
| Inheritance Tax | No |
Key Facts
Social Security benefits are exempt from state income tax. Low property taxes.
Compare to Other States
See how salaries compare on our average salary in New Mexico page. Thinking about starting a business? Check our LLC guide for New Mexico. See the current minimum wage in New Mexico.
Financial Calculators
Plan your finances in New Mexico with our free tools:
- Paycheck Calculator — estimate take-home pay after taxes
- Salary Calculator — convert hourly to annual pay
- Mortgage Calculator — estimate monthly home payments
- Home Affordability Calculator — see how property taxes affect what you can afford