The differences in purchasing power can be large and they have significant implications for the relative impact of economic and tax policies across the United States.
New Mexico Tax Rates, Collections, and Burdens
How does New Mexico’s tax code compare? New Mexico has a graduated individual income tax, with rates ranging from 1.70 percent to 5.90 percent. New Mexico also has a 4.8 percent to 5.9 percent corporate income tax rate. New Mexico has a 5.0 percent state sales tax rate, a max local sales tax rate of 3.813 percent, and an average combined state and local sales tax rate of 7.72 percent. New Mexico’s tax system ranks 22nd overall on our 2023 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: How Does Your State Compare?
State Tax Data
Average Local Sales Tax Rate2.71%See 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
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