How New Mexico taxes your paycheck
New Mexico taxes your 2026 wages in six steps. Rates run from 1.5% to 5.9%. Single filers reach the top rate above $210,000 of taxable income, and married couples above $315,000.
New Mexico lets you take the same standard deduction as your federal return. In 2026 that's $16,100 for a single filer and $32,200 for a married couple. Traditional 401(k) savings come off your wages first.
There is no state payroll deduction for disability or family leave, and no local income tax. For example, a single filer earning $60,000 has $43,900 of taxable income and owes about $1,654.30.
New Mexico tax rates and rules for 2026
New Mexico has graduated rates from 1.5% to 5.9%.
| Taxable income | Rate |
|---|---|
| $0 to $5,500 | 1.5% |
| $5,500 to $16,500 | 3.2% |
| $16,500 to $33,500 | 4.3% |
| $33,500 to $66,500 | 4.7% |
| $66,500 to $210,000 | 4.9% |
| Over $210,000 | 5.9% |
| Taxable income | Rate |
|---|---|
| $0 to $8,000 | 1.5% |
| $8,000 to $25,000 | 3.2% |
| $25,000 to $50,000 | 4.3% |
| $50,000 to $100,000 | 4.7% |
| $100,000 to $315,000 | 4.9% |
| Over $315,000 | 5.9% |
| Taxable income | Rate |
|---|---|
| $0 to $4,000 | 1.5% |
| $4,000 to $12,500 | 3.2% |
| $12,500 to $25,000 | 4.3% |
| $25,000 to $50,000 | 4.7% |
| $50,000 to $157,500 | 4.9% |
| Over $157,500 | 5.9% |
- Starts from
- Wages after pre-tax deductions
- 401(k) contributions
- Lower your state taxable wages
- Standard deduction
- Same as the federal standard deduction
Local taxes
No local income tax on wages.
What this estimate leaves out
- Uses the 2026 federal standard deduction, which New Mexico allows through its rolling tie to the federal tax code. The 2026 New Mexico return instructions weren't published when checked.
- New Mexico's deduction for certain dependents.
- The low- and middle-income exemption, which lowers taxable income for some filers with modest incomes.
- New Mexico's working families tax credit, child income tax credit and low-income rebates.
Frequently asked questions
Does New Mexico tax 401(k) contributions?
No. New Mexico starts from your federal income, so money you put in a traditional 401(k) isn't taxed this year. It's taxed when you withdraw it.
What standard deduction does New Mexico use?
The federal one. For 2026 that's $16,100 if you're single, $24,150 for head of household and $32,200 for married couples filing jointly.
Is there local income tax in New Mexico?
No. Cities and counties in New Mexico don't tax wages. Local governments rely on gross receipts tax, which is charged on sales, not on your paycheck.
Are there credits that could lower my New Mexico tax?
Yes. Families may qualify for the working families tax credit and the child income tax credit. This estimate leaves them out, so your real bill may be lower.
Sources
Figures checked 2026-10-25. The federal side uses the same 2026 rules as the main paycheck calculator, where the formula and method are explained. Found a problem? Tell us.