Taxes in New Mexico

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 rank?  Below, we have highlighted a number of tax rates, ranks, and measures detailing New Mexico’s income tax, business tax, sales tax, and property tax systems. Click the tabs below to explore!

Top Individual Income Tax Rate

4.9%

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State and Local Individual Income Tax Collections per Capita

$676

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State and Local Tax Burden

8.7%

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Tax Freedom Day

April 8

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Top Corporate Income Tax Rate

5.9%

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State Business Tax Climate Index Ranking

25

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State Sales Tax Rate

5.125%

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Average Local Sales Tax Rate

2.69%

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Combined State and Average Local Sales Tax Rate

7.82%

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State and Local General Sales Tax Collections per Capita

$1082

State Gasoline Tax Rate (cents per gallon)

18.88¢

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State Cigarette Tax Rate (dollars per 20-pack)

$1.66

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Property Taxes Paid as a Percentage of Owner-Occupied Housing Value

0.62%

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State and Local Property Tax Collections Per Capita

$768


Featured Articles

Sales Tax Holidays: Politically Expedient but Poor Tax Policy, 2019

July 24, 2019

State Tax Changes as of July 1, 2019

July 11, 2019

2019 State Business Tax Climate Index

September 26, 2018


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