New Mexico Income Tax Calculator
Estimate your 2025 combined federal and New Mexico income tax — New Mexico adds progressive state income tax on top of federal.
Income tax in New Mexico
For tax year 2025 New Mexico debuted a restructured six-bracket schedule running from 1.5% to 5.9% — the first major restructuring since 2005 — with different bracket widths for single and joint filers. The state uses the federal standard deduction. Capital gains are taxed as ordinary income, but New Mexico allows a deduction for the greater of $1,000 or 40% of net capital gains, so this estimate can overstate tax on large gains.
Common questions
What is the New Mexico state income tax rate?
Does New Mexico tax capital gains?
How we calculate this
Federal brackets per our income-tax methodology, plus 2025 New Mexico state tax. Estimates only — not tax advice.
Estimates for general informational purposes only; not tax advice. New Mexico figures are simplified (credits, local taxes, and AGI adjustments vary) and should be verified with the state Department of Revenue.