State Income Tax
New Mexico imposes a state income tax using a graduated tax structure with 4 brackets ranging from 1.7% to 5.9%. The filing deadline is 2026-04-15. Social Security benefits are exempt from New Mexico state income tax. Retirement income is generally taxable. Social Security is exempt for most taxpayers. General retirement income exemption up to $2,500.
Retirement Income Details
Social Security is exempt for most taxpayers. General retirement income exemption up to $2,500.
Does New Mexico have a state income tax?
Yes. New Mexico has a state income tax with a graduated structure ranging from 1.7% to 5.9% across 4 brackets.
What is the New Mexico income tax rate?
New Mexico has a graduated income tax with 4 brackets. The lowest rate is 1.7% and the highest rate is 5.9%.
Is Social Security taxed in New Mexico?
No. New Mexico does not tax Social Security benefits, which can be significant for retirees living on fixed incomes.
Is retirement income taxed in New Mexico?
Yes. New Mexico generally taxes retirement income. Social Security is exempt for most taxpayers. General retirement income exemption up to $2,500.
When is the New Mexico income tax filing deadline?
The New Mexico state income tax filing deadline is 2026-04-15. You can file and pay through the official New Mexico Department of Revenue portal.
What is the standard deduction in New Mexico?
New Mexico's standard deduction is $14,600 for single filers and $29,200 for married filing jointly.
How does New Mexico income tax compare to neighboring states?
New Mexico's top rate of 5.9% is in the moderate range nationally. Use the comparison table above to see how neighboring states compare.
Official Payment Portal
New Mexico Department of Revenue
Last verified: 2026-03-31 · Always consult a tax professional before making financial decisions.