New MexicoSalary Calculator 2026 — Take-Home Pay After Federal & State Taxes

New Mexico uses a five-bracket progressive income tax with rates from 1.7% to 5.9%. The 5.9% top rate applies to income above $157,500 for single filers. New Mexico conforms to the federal standard deduction. The state provides a low-income comprehensive tax rebate (LICTR) that reduces the burden for lower earners. New Mexico also has a relatively high Gross Receipts Tax (GRT) — a hybrid sales/business tax — that typically results in consumers paying 7–9% on most purchases. Albuquerque and Santa Fe do not levy city income taxes separately. New Mexico has significant oil and gas revenues that have funded recent income tax reductions and rebates, including one-time rebates to residents in recent years. The state's economy and population have grown, particularly in the Albuquerque metro. Energy industry workers in the Permian Basin area benefit from higher wages with moderate tax rates.