New Mexico charges 1.7-5.9% state income tax. Use the cost of living calculator pre-loaded with New Mexico rates.
Open Cost of Living Calculator →New Mexico's cost of living index is 91, and the graduated (1.7-5.9%) state tax further affects how far your dollar goes. Near-average living costs mean the state tax rate is the primary differentiator when comparing New Mexico to other states. This calculator factors in both taxes and cost of living for New Mexico.
New Mexico uses a graduated income tax with brackets ranging from 1.7-5.9%. Lower income is taxed at lower rates, with the 5.9% top rate applying only to income in the highest bracket. This progressive structure means your effective state tax rate is always lower than the top marginal rate. New Mexico does not have local income taxes, so the state graduated rate is the total state-level income tax burden.
The table below shows what you actually keep at five salary levels in New Mexico, accounting for federal tax, FICA, and New Mexico's graduated (1.7-5.9%) state tax.
See how New Mexico compares to other West states. Each link takes you to the cost of living calculator landing page for that state.
For a comprehensive breakdown of New Mexico’s tax structure, salary comparisons, cost-of-living analysis, and more, visit the full New Mexico take-home pay page.