Updated October 8, 2026. Quick answer: New Mexico’s income tax has six graduated rates, from 1.5% to 5.9%, according to the Taxation and Revenue Department’s 2026 withholding publication. For a single filer the 4.9% rate covers wages from $74,550 to $218,050, and 5.9% applies above that. The 2026 table gives no tax on the first $8,050 for a single filer.
The 2026 New Mexico rates
| Single filer, annual wages in the 2026 withholding table | Rate |
|---|---|
| First $8,050 | 0% |
| $8,050 to $13,550 | 1.5% |
| $13,550 to $24,550 | 3.2% |
| $24,550 to $41,550 | 4.3% |
| $41,550 to $74,550 | 4.7% |
| $74,550 to $218,050 | 4.9% |
| Over $218,050 | 5.9% |
These are the department’s withholding figures for wages paid on or after January 1, 2026, so they include the zero band at the bottom. Married filers get a zero band to $16,100, then 1.5% to $24,100, 3.2% to $41,100, 4.3% to $66,100, 4.7% to $116,100, 4.9% to $331,100 and 5.9% above. Heads of household have a zero band to $12,075, then 1.5% to $20,075, 3.2% to $37,075, 4.3% to $62,075, 4.7% to $112,075 and 4.9% to $327,075. The department also says that if federal withholding on a bonus uses a flat percent, “a flat 5.9% of the supplemental wage or fringe benefit” is withheld for the state.
Exemption and standard deduction
The withholding publication says its tables were “updated to reflect the standard deduction for the year and the change to the federal W-4 by removing withholding allowance deduction amounts from wages”. Each table opens with a zero band of $8,050 for single filers, $16,100 for married filers and $12,075 for heads of household. No 2026 return standard deduction appears in the documents read. For the 2025 return, the department’s instructions say “Deduction amounts for personal exemptions are suspended for tax years 2018 through 2025 by the Federal Tax Cuts and Jobs Act”, and New Mexico allows a low- and middle-income exemption of up to $2,500 per exemption, depending on filing status and adjusted gross income.
A worked example
As a computed example (an illustration, not a source figure), take $100,000 of New Mexico taxable income. Using the 2026 single column of the withholding table, which prints $2,716.50 plus 4.9% of the excess over $74,550, the tax on $100,000 of annual wages is $3,963.55 (computed).
For a married filer the same table prints $1,739.00 plus 4.7% of the excess over $66,100, which gives $3,332.30 (computed). The department’s 2025 return rate table prints $4,356 for a single filer and $4,087 for a married couple filing jointly at exactly $100,000 of taxable income.
What this page does not say
The 2026 PIT-1 instructions and return rate table had not been published when this page was written, so the 2026 schedule shown is the department’s withholding table for wages. The 2026 return standard deduction was not found, the New Mexico statute was not read, and local taxes and credits are not covered.
Common mistakes
- Treating the withholding table as the return’s rate schedule. Its zero band reflects the standard deduction and applies to wages.
- Applying 5.9% to all income. It starts at $218,050 for a single filer in the 2026 table.
- Using the single column for a married or head of household filer, whose bands start higher.
Related: how New Mexico taxes retirement income, whether New Mexico taxes pensions, how New Mexico taxes capital gains, and the federal 2026 tax brackets.
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Answer againSources
- New Mexico Taxation and Revenue Department, FYI-104 New Mexico Withholding Tax (Rev. 11/2025, wages paid on or after January 1, 2026): https://klvg4oyd4j.execute-api.us-west-2.amazonaws.com/prod/PublicFiles/34821a9573ca43e7b06dfad20f5183fd/99f34f8c-568d-42ab-8569-659e31586239/FYI-104%202026.pdf
- New Mexico Taxation and Revenue Department, 2025 Tax Rate Table (PIT-TRT): https://realfile.tax.newmexico.gov/2025trt.pdf
- New Mexico Taxation and Revenue Department, 2025 PIT-1 Personal Income Tax Return Instructions: https://klvg4oyd4j.execute-api.us-west-2.amazonaws.com/prod/PublicFiles/34821a9573ca43e7b06dfad20f5183fd/2d774fd0-be97-4b57-8dae-68aed999da0f/2025pit-1-ins.pdf
- New Mexico Taxation and Revenue Department (where later updates appear; no figure on this page comes from it): https://www.tax.newmexico.gov/
Sources: the primary documents linked above, read on October 8, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.