New Mexico Taxes 2025
Complete tax guide and OBBBA calculator for NM residents
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New Mexico Tax Overview 2025
State Income Tax
1.7% - 5.9%
Graduated rate structure
Combined Sales Tax
7.59%
State 4.88% + Local 2.72%
Avg Property Tax
0.80%
Below average property taxes
💼 New Mexico Income Tax 2025
New Mexico has graduated income tax rates from 1.7% to 5.9%.
When filing your New Mexico state tax return, your income tax liability depends on your taxable income and filing status. New Mexico uses a graduated income tax structure.
New Mexico Income Tax Quick Facts
🛒 New Mexico Sales Tax 2025
New Mexico's combined average sales tax rate is 7.59%, which includes both state and local components. The state sales tax rate is 4.88%, while local jurisdictions add an average of 2.72%.
Sales Tax Breakdown
💡 Tip: Local sales tax rates vary by city and county. Your actual rate may be higher or lower depending on where you shop.
🏠 New Mexico Property Tax 2025
New Mexico's average effective property tax rate is 0.80%. Below average property taxes.
Property taxes in New Mexico are assessed at the local level by counties and municipalities. Rates can vary significantly between jurisdictions.
Example Annual Property Tax
| Home Value | Est. Annual Tax | Monthly |
|---|---|---|
| $250,000 | $2,000 | $167 |
| $400,000 | $3,200 | $267 |
| $600,000 | $4,800 | $400 |
OBBBA Tax Benefits for New Mexico Residents
New Mexico residents benefit from OBBBA deductions on federal returns.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several new federal tax deductions that New Mexico residents can claim starting with their 2025 tax returns.
Available OBBBA Deductions for NM Residents:
Calculate Your New Mexico Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a New Mexico resident.
Calculate My SavingsHow New Mexico Compares
| Tax Type | NM Rate | US Average | Comparison |
|---|---|---|---|
| Income Tax (Top Rate) | 1.7% - 5.9% | 5.1% | Varies |
| Sales Tax | 7.59% | 7.12% | Above Avg |
| Property Tax | 0.80% | 1.10% | Below Avg |
Frequently Asked Questions
What is the income tax rate in New Mexico?
New Mexico has a graduated income tax with rates of 1.7% - 5.9%. New Mexico has graduated income tax rates from 1.7% to 5.9%.
What is the sales tax in New Mexico?
The combined average sales tax rate in New Mexico is 7.59%. This includes the state rate of 4.88% plus an average local rate of 2.72%.
How do OBBBA deductions benefit New Mexico residents?
New Mexico residents benefit from OBBBA deductions on federal returns. New Mexico residents can claim tips, overtime, auto loan interest, SALT, and senior bonus deductions on their federal returns.
When are New Mexico taxes due?
For tax year 2025, New Mexico state taxes are due on April 15, 2026, the same date as federal taxes. Extensions may be available if you need more time to file.