New Mexico Income Tax Rates 2025
New Mexico has a progressive income tax system with 5 brackets and rates ranging from 1.7% to 5.9%. The top rate applies to income over $210,000 for single filers, placing New Mexico in the mid-range of state income tax rates.
Tax Type
Progressive
Rate Range
1.7% – 5.9%
Brackets
5
2025 Tax Brackets — Single Filer
| Taxable Income | Rate |
|---|---|
| $0 – $5,500 | 1.7% |
| $5,500 – $11,000 | 3.2% |
| $11,000 – $16,000 | 4.7% |
| $16,000 – $210,000 | 4.9% |
| Over $210,000 | 5.9% |
How It Works
New Mexico's progressive tax applies marginal rates to each bracket of income. The state uses federal adjusted gross income as the starting point and offers various deductions and credits. New Mexico exempts most Social Security benefits from taxation and provides additional exemptions for low-income seniors.