New Mexico Tax
New Mexico State Tax
New Mexico Income Tax
Payment of taxes is mandatory in the United States. Apart from taxes collected by the federal government, US residents are also required to pay state taxes and other special taxes levied by the local government. Among the main taxes paid in New Mexico are income tax, business tax, sales tax, property tax, and excise tax.
New Mexico Income Tax
All incomes generated by a resident are subject to state income tax. Part-time and non-residents are also required to pay income tax for earnings generated within the state. Filing and payment of income tax returns can be done manually or electronically. Taxpayers must choose the right form and submit them to the New Mexico Taxation and Revenue Department before the designated Tax Day of each year.
New Mexico personal income tax rates are classified into 4 brackets ranging from 1.7% to 4.9%. On the other hand, corporations and businesses are subject to 4.8% corporate income tax for the first $500,000; 6.4% for the next $500,000; and 7.65% if the taxable income exceeds $1,000,000.
New Mexico Sales Tax
Technically, the State of New Mexico does not have state sales tax; however, consumers pay for state ‘gross receipts tax’. Gross receipts tax rates range from 5.125% to 8.5625% depending on the area and the type of product or service acquired. Like in most states, New Mexico exempts groceries and take-out food from tax.
New Mexico Property Tax
New Mexico collects the lowest median property tax rates in the US. The state collects an average of 0.55% property tax rate of the fair market value of properties assessed in the state.
