Across the state of New Mexico, taxpayers are assessed a state income tax rate varying from 1.7% to 4.9% across four separate brackets based on graduating income and filing status.
Single and Married Filing Separately:
- 1.7% tax rate on the first $5,500 of income that is taxed
- 3.2% between $5,501 and $11,000 of taxable income
- 4.7% between $11,001 and $16,000 of taxable income
- 4.9% on any income of $16,001 and greater that is taxable
Married Filing Jointly and Head of Household:
- 1.7% tax rate on the first $8,000 of income that is taxed
- 3.2% between $8,001 and $16,000 of taxable income
- 4.7% between $16,001 and $24,000 of taxable income
- 4.9% on any income of $24,001 and greater that is taxable
The Land of Enchantment follows the federal guidelines for personal exemptions, and refers to the IRS dollar amounts for standard and itemized deductions. Also, the state uses the federal adjusted gross income as its base for personal income tax. Unless it’s a weekend or holiday, all returns are due April 15th or the next business day (if a holiday/weekend).
New Mexico Residents
Residency is important when it comes to income tax time. As far as taxes are concerned, resident status for New Mexico is determine by where you domiciled during the year. You must be physically present in New Mexico for a total of 185 days, which do not have to be consecutive. Your permanent home is considered your domicile, in the state where you go when you return from vacation, business, leave or military assignment.
One Domicile
You cannot change residency from the state of New Mexico without proof that you have abandoned your domicile and established a new permanent home out of state.
Changing your residency from New Mexico must be convincing. Temporary relocations are not reasons for change of domicile, regardless of how long you intend to stay. If you reside in New Mexico, your residency status doesn’t change if you leave the state for business, work, or school, unless you show no intention of returning to the state to live.
As far as taxes go, New Mexico residents maintain a domicile in the state for the entire year, or are physically present in the state for a 185 days or more, no matter where their permanent domicile is. This means that an individual can be a resident of New Mexico without having a permanent home in the state. Anyone present in the state for over 185 days is a resident, including military personal assigned to the state, or temporary work assignments that last longer than the residency period. Military personnel assigned in New Mexico should claim non-resident filing status if they have a permanent home in another state.
