For more on corporate taxes, see Kyle's recent study "U.S. Multinationals Paid More Than $100 Billion in Foreign Income Taxes."
The facts on New Mexico’s Tax Climate
4.9%Individual Income TaxTop rate
7.6%Corporate Income TaxTop rate
$633Property Tax CollectionsPer Capita
New Mexico's Individual Income Tax System
New Mexico's personal income tax system consists of four brackets and a top rate of 4.9%. That rate ranks 15th lowest among states levying an individual income tax. New Mexico's income tax collections per person were $466 in 2010 which ranked 12th lowest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
New Mexico's Corporate Income Tax System
New Mexico's corporate income tax system consists of three brackets and a top rate of 7.6%. That rate ranks 20th highest among states levying an corporate income tax. New Mexico's corporate tax collections per person were $61 in 2010 which ranked 11th lowest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
New Mexico Sales and Excise Taxes
New Mexico levies a 5.125% general sales or use tax on consumers, which is below the national median of 6%. The average local sales tax rate is an additional 2.13%. New Mexico's state and local governments collect $1240 per person in general sales taxes and $351 per person in excise taxes, for a combined figure of $1591, which ranks 12th highest nationally. New Mexico's gasoline tax stands at 18.9¢ (8th lowest nationally), while its cigarette tax stands at $1.66 (19th highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
New Mexico Property Tax Collections Relatively Low
New Mexico's state and local governments collected approximately $633 per person in property taxes, which ranks 3rd lowest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 3rd in New Mexico
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2013, New Mexico taxpayers worked until April 3rd (5th earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Utah, April 13th (ranked 24th earliest nationally); Arizona, April 5th (ranked 8th earliest nationally); Texas, April 10th (ranked 20th earliest nationally); Oklahoma, April 6th (ranked 9th earliest nationally); and Colorado, April 17th (ranked 16th latest nationally).
New Mexico's State and Local Tax Burden Below National Average
New Mexico's 2010 tax burden of 8.44% ranks 12th lowest out of 50 states, and is below the national average of 9.9%. New Mexico's taxpayers pay $2906 per capita in state and local taxes.
New Mexico's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
New Mexico's 2013 Business Tax Climate Index Ranks 38
New Mexico ranks 38th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Utah, 10th, Arizona, 25th, Texas, 9th, Oklahoma, 35th, and Colorado, 18th.
50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)
New Mexico Info
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