Tax Bracket for New Mexico (2026)
Last updated: January 15, 2026
New Mexico (NM) Key Facts
Tax Structure
Progressive (5 brackets)
Top Marginal Rate
5.9%
Number of Brackets
5
Tax Year
2,026
How This Calculator Works in New Mexico
This calculator shows which New Mexico tax bracket your income falls into. Enter your income and filing status to see marginal and effective rates.
New Mexico Overview
New Mexico uses a progressive income tax system with 5 brackets ranging from 1.7% to 5.9%. Higher portions of your income are taxed at higher rates, so your effective rate is always lower than your top marginal bracket.
How New Mexico Compares
New Mexico's top rate of 5.9% compares to Arizona at 2.5% and Texas at 0%. Comparing effective rates is more meaningful than top rates alone.
| State | Top Rate | Notes |
|---|---|---|
| Arizona | 2.5% | Arizona has an income tax rate of 2.5%. |
| Texas | 0% | Texas has an income tax rate of 0%. |
| Colorado | 4.4% | Colorado has an income tax rate of 4.4%. |
New Mexico's income tax rate of 5.9% compares to a national average of approximately 5.04%. This is above the national average.
Tips for New Mexico Residents
- 1New Mexico has a progressive income tax with 5 brackets ranging from 1.7% to 5.9%.
- 2Your marginal rate (the rate on your last dollar) is often higher than your effective rate (total tax / total income).
- 3Moving into a higher bracket only taxes the additional income at the higher rate, not your entire income.
- 4Pre-tax 401(k) and IRA contributions can keep you in a lower New Mexico bracket by reducing taxable income.
- 5Compare your effective rate rather than marginal rate when evaluating New Mexico's tax impact on your finances.