How New Mexico taxes your paycheck
New Mexico taxes wages under the six-bracket schedule from HB 252 (2024): 1.5%, 3.2%, 4.3%, 4.7%, 4.9% and 5.9%, unchanged for 2026. Heads of household and surviving spouses use the married-filing-jointly schedule. The return subtracts the federal standard deduction under rolling conformity, so the 2026 OBBBA amounts apply; the 2026 decoupling bill (SB 151) affected only the corporate income tax.
2026 New Mexico income tax brackets
| Taxable income (single) | Rate |
|---|---|
| $0 to $5,500 | 1.5% |
| $5,500 to $16,500 | 3.2% |
| $16,500 to $33,500 | 4.3% |
| $33,500 to $66,500 | 4.7% |
| $66,500 to $210,000 | 4.9% |
| Over $210,000 | 5.9% |
| Taxable income (married filing jointly) | Rate |
|---|---|
| $0 to $8,000 | 1.5% |
| $8,000 to $25,000 | 3.2% |
| $25,000 to $50,000 | 4.3% |
| $50,000 to $100,000 | 4.7% |
| $100,000 to $315,000 | 4.9% |
| Over $315,000 | 5.9% |
| Deduction or credit | Single | Married | Head of household |
|---|---|---|---|
| Standard deduction | $16,100 | $32,200 | $24,150 |
| Personal exemption | $0 | $0 | $0 |
Local income taxes
New Mexico has no city or county income or wage taxes; local governments rely on gross receipts and property taxes.
Take-home pay in New Mexico at common salaries
Single filer, 2026 rules, no pre-tax deductions or local taxes.
| Salary | Federal tax | FICA | New Mexico taxes | Take-home | Biweekly |
|---|---|---|---|---|---|
| $30,000 | $1,420 | $2,295 | $351 | $25,934 | $997 |
| $40,000 | $2,620 | $3,060 | $753 | $33,567 | $1,291 |
| $50,000 | $3,820 | $3,825 | $1,184 | $41,171 | $1,583 |
| $60,000 | $5,020 | $4,590 | $1,654 | $48,736 | $1,874 |
| $75,000 | $7,670 | $5,738 | $2,359 | $59,233 | $2,278 |
| $100,000 | $13,170 | $7,650 | $3,569 | $75,611 | $2,908 |
| $150,000 | $24,734 | $11,475 | $6,019 | $107,772 | $4,145 |
How New Mexico compares
At a $60,000 salary, New Mexico ranks #16 of 51 for take-home pay. The table below shows the states closest in take-home pay.
Minimum wage in New Mexico
The New Mexico minimum wage is $12.00 an hour as of January 1, 2023. A full-time minimum wage job pays $24,960 a year before taxes and about $21,975 after taxes. See the full New Mexico minimum wage guide for tipped wages and scheduled increases.
What this calculator does not include
Ignores the low- and middle-income exemption (phased out by AGI of $36,667 single / $55,000 joint), the dependent deduction, the flat $2.25-per-quarter employee workers' compensation fee and credits such as the Working Families Tax Credit. Federal itemized deductions are also ignored. The calculator also leaves out dependents, tax credits, additional withholding on your W-4 and non-wage income. Your employer's withholding can differ from your final tax bill.
Frequently asked questions
Does New Mexico have a state income tax?
Yes. New Mexico taxes wages at graduated rates from 1.5% to 5.9% for 2026. Your employer withholds it from each paycheck along with federal taxes.
How much is $60,000 after taxes in New Mexico?
A single filer earning $60,000 in New Mexico keeps about $48,736 a year, or $4,061 a month, in 2026. That ranks 16 of 51 for take-home pay at that salary.
Does New Mexico have local income taxes?
New Mexico has no city or county income or wage taxes; local governments rely on gross receipts and property taxes.
What is the minimum wage in New Mexico?
The minimum wage in New Mexico is $12.00 an hour as of January 1, 2023. Full time, that is $24,960 a year before taxes and about $21,975 after taxes for a single filer.
Sources
- NM Taxation and Revenue Dept. FYI-104, New Mexico Withholding Tax, effective January 1, 2026 (Rev. 11/2025)
- NM Taxation and Revenue Dept. 2025 PIT-1 Instructions
- NM TRD: Withholding Tax and Workers' Compensation (fee amounts)
- RSM: New Mexico addresses OBBBA in annual tax bill (SB 151, 2026)
- Tax Foundation: State Individual Income Tax Rates and Brackets, 2026
- IRS Rev. Proc. 2025-32 (2026 federal tax tables)