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Taxes In New Mexico

New Mexico Tax Rates, Collections, and Burdens

How does New Mexico’s tax code compare? New Mexico has a graduated state individual income tax, with rates ranging from 1.70 percent to 5.90 percent. New Mexico has a graduated corporate income tax, with rates ranging from 4.8 percent to 5.9 percent. New Mexico also has a 4.88 percent state sales tax rate and an average combined state and local sales tax rate of 7.62 percent. New Mexico has a 0.67 percent effective property tax rate on owner-occupied housing value.

New Mexico does not have an estate tax or inheritance tax. New Mexico has an 18.88 cents per gallon gas tax rate and a $2.00 cigarette excise tax rate. The State of New Mexico collects $5,179 in state and local tax collections per capita. New Mexico has $7,294 in state and local debt per capita and has a 65 percent funded ratio of public pension plans. Overall, New Mexico’s tax system ranks 23rd on our 2024 State Business Tax Climate Index.

Each state’s tax code is a multifaceted system with many moving parts, and New Mexico is no exception. The first step towards understanding New Mexico’s tax code is knowing the basics. How does New Mexico collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2024: How Does Your State Compare?

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Tax Data by State

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State Tax Data

Individual Taxes

Top Individual Income Tax Rate
5.9%See Full Study
State Local Individual Income Tax Collections per Capita
$599Rank: 40
State and Local Tax Burden
8.8%Rank: 7See Full Study

Business Taxes

Top Corporate Income Tax Rate
5.9%See Full Study
State Business Tax Climate Index Ranking
22See Full Study

Sales Taxes

State Sales Tax Rate
5.125%Rank: 32See Full Study
Average Local Sales Tax Rate
2.71%See Full Study
Combined State and Average Local Sales Tax Rate
7.84%Rank: 15See Full Study
State and Local General Sales Tax Collections per Capita
$2146Rank: 3
State Gasoline Tax Rate (cents per gallon)
18.88¢Rank: 48
State Cigarette Tax Rate (dollars per 20-pack)
$2.00Rank: 18

Property Taxes

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value
0.67%Rank: 35
State and Local Property Tax Collections Per Capita
$899Rank: 45

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