New Mexico

The facts on New Mexico’s Tax Climate

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 state and local income tax collections per person were $529 in 2011 which ranked 13th 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 7.3%. That rate ranks 22nd highest among states levying a corporate income tax. New Mexico's state and local corporate income tax collections per person were $111 in 2011 which ranked 25th 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 5.95%. The average local sales tax rate is an additional 2.14%. New Mexico's state and local governments collect $1350 per person in general sales taxes and $383 per person in excise taxes, for a combined figure of $1733, which ranks 16th highest nationally. New Mexico's gasoline tax stands at 18.9¢ (8th lowest nationally), while its cigarette tax stands at $1.66 (20th 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 $659 per person in property taxes, which ranks 4th lowest nationally.
State and local property tax collections per capita by state

Tax Freedom Day Arrives on April 8th 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 2014, New Mexico taxpayers worked until April 8th (7th earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Utah, April 17th (ranked 21st latest nationally); Arizona, April 11th (ranked 15th earliest nationally); Texas, April 13th (ranked 19th earliest nationally); Oklahoma, April 11th (ranked 15th earliest nationally); and Colorado, April 22nd (ranked 13th latest nationally).

New Mexico's State and Local Tax Burden Below National Average

New Mexico's 2011 tax burden of 8.62% ranks 14th lowest out of 50 states, and is below the national average of 9.8%. New Mexico's taxpayers pay $3044 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 2014 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, 9th, Arizona, 22nd, Texas, 11th, Oklahoma, 36th, and Colorado, 19th.
50-State Comparison of Business Tax Climates (data only) (2013)
2014 State Business Tax Climate Index (full study)

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