Free New Mexico Tax Calculator

New Mexico runs a six-bracket progressive tax from 1.5% up to 5.9% for 2026 (HB 252 lowered the rates for 2025). The structure: 1.5% on your first $5,500 of taxable income (single), 3.2% to $16,500, 4.3% to $33,500, 4.7% to $66,500, 4.9% to $210,000, and 5.9% above.

On a $64,000 single salary: taxable income after the standard deduction is $47,900. The low brackets consume $33,500 at about $1,166, and the remaining $14,400 at 4.7% costs about $677 — roughly $1,842 total, a 2.9% effective rate.

New Mexico is one of the most retiree-friendly states in the West: Social Security is fully exempt, and there's a deduction of up to $8,000 per person ($15,200 for 65+) for qualifying retirement income (pensions, 401(k), IRA). The state also allows a deduction for certain military benefits. Low income-tax rates plus generous retirement breaks make New Mexico competitive with zero-tax states for retirees.

Property tax is cheap at 0.92%, but combined sales tax (called gross receipts tax in New Mexico) runs 7.66% on average and applies broadly to services. The GRT structure embeds tax at multiple production levels, which pushes effective consumption costs above the stated rate.

Filing in New Mexico: the resident return is Form PIT-1, due to the Taxation and Revenue Department by April 15. New Mexico offers free e-file, and the retirement deductions are claimed directly on the PIT-1.