NM
New Mexico
New Mexico taxes income up to 5.9%, sales tax averages 7.67% with local rates included, the minimum wage is $12 an hour.
Figures last checked September 4, 2026.
Income tax
| Figure | NM | Source |
|---|---|---|
| Taxes wage income Tax year 2026 | Yes | Tax Foundation: State Individual Income Tax Rates and Brackets, 2026 |
| Bracket structure Tax year 2026 | Graduated | Tax Foundation: State Individual Income Tax Rates and Brackets, 2026 |
| Top marginal rate Tax year 2026 | 5.9% | Tax Foundation: State Individual Income Tax Rates and Brackets, 2026 |
| Standard deduction, single Tax year 2026 | $16,100 | Tax Foundation: State Individual Income Tax Rates and Brackets, 2026 |
Sales tax
| Figure | NM | Source |
|---|---|---|
| State rate Tax year 2026 | 4.875% | Tax Foundation: State and Local Sales Tax Rates, 2026 |
| Average local rate Tax year 2026 | 2.79% | Tax Foundation: State and Local Sales Tax Rates, 2026 |
| Combined average Tax year 2026 | 7.67% | Tax Foundation: State and Local Sales Tax Rates, 2026 |
Property and wages
| Figure | NM | Source |
|---|---|---|
| Effective property tax rate Tax year 2024 | 0.78% | Tax Foundation, Property Taxes by State and County |
| Minimum wage Tax year 2026 | $12 | US Department of Labor, State Minimum Wage Laws |
Run the numbers for New Mexico
- Bonus Tax Calculator What lands in your account after a bonus is withheld.
- Car Sales Tax Calculator Sales tax on a vehicle, after the trade-in credit.
- Cost of Living Calculator What your salary covers, after state income tax and sales tax.
- Hourly to Salary Calculator Convert an hourly rate to annual pay, and back again.
- LLC Cost Calculator Filing fees, annual reports and franchise tax to form an LLC.
- Mortgage Affordability Calculator What price your income supports, at the 28% and 36% DTI limits.