New Mexico (NM) Tax Rates — 2026
Income Tax
5.9%
Sales Tax
7.595%
Property Tax
0.67%
Income Tax
Type: Graduated (marginal brackets)
| From | To | Rate |
|---|---|---|
| $0 | $5,500 | 1.7% |
| $5,500 | $11,000 | 3.2% |
| $11,000 | $16,000 | 4.7% |
| $16,000 | $210,000 | 4.9% |
| $210,000 | and above | 5.9% |
Standard Deduction: Single: $14,600 | Married Filing Jointly: $29,200
Sales Tax
State Rate4.875%
Avg Local Rate2.72%
Combined Rate7.595%
Groceries: Exempt
+1.02% vs national avg
Property Tax
Effective Rate0.67%
Median Annual Tax$1,316
-0.40% vs national avg (1.07%)
Retirement Income Tax
Social SecurityNO
PensionsPARTIAL
401(k) / IRAYES
Estate & Inheritance Tax
Has Estate Tax: NO
Corporate Tax
Corporate Income Tax Rate: 5.9%
Additional Notes
New Mexico exempted Social Security benefits from tax starting in 2022. Uses a Gross Receipts Tax rather than a traditional sales tax. Provides a retirement income exclusion for low-to-moderate income seniors.
Compare with another state:
Sources: New Mexico Department of Revenue; Tax Foundation, Facts & Figures 2025; IRS Publication 17.