New Mexico

NM2026 Tax Data
Income Tax
5.9%
Sales Tax
5.13%
Property Tax
0.67%

New Mexico Income Tax Brackets (2026)

RateSingle Filers
1.70%$0 - $5,500
3.20%$5,500 - $11,000
4.70%$11,000 - $16,000
4.90%$16,000 - $210,000
5.90%$210,000+

New Mexico Tax Overview 2026

New Mexico has a progressive income tax system with rates ranging from 1.70% to 5.90%. The state sales tax rate is 5.13% and property taxes average 0.67% of home value.

  • Sales Tax: Base rate 5.13%. Combined rate up to 9.50% with local taxes.
  • Groceries: Subject to full sales tax
  • Prescriptions: Exempt from sales tax
  • Clothing: Subject to sales tax
  • Property Tax: Effective rate of 0.67% on a median home value of $178,400

New Mexico Tax FAQ

What is the income tax rate in New Mexico for 2026?

New Mexico's income tax rate ranges from 1.7% to 5.9% (progressive brackets). Use our New Mexico income tax calculator above to estimate your specific tax.

What is the sales tax rate in New Mexico?

The base state sales tax rate in New Mexico is 5.13%. With local taxes, the combined rate can reach up to 9.50%. Groceries are generally subject to sales tax.

Does New Mexico tax retirement income?

New Mexico taxes retirement income such as pensions and 401(k) distributions as ordinary income. Check with a tax professional for specific retirement tax rules.

What is the standard deduction in New Mexico for 2026?

The standard deduction for single filers in New Mexico is $14,600 and $29,200 for married couples filing jointly.

How do New Mexico tax rates compare to other states?

New Mexico's top income tax rate of 5.9% is around the national average. Combined state and local sales tax rates in New Mexico are 5.13%. Use our comparison tools to see how New Mexico stacks up against neighboring states.