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New Mexico Tax Calculator

The New Mexico (NM) Tax Calculator is updated for the 2026/27 tax year and estimates New Mexico state income tax, federal tax, and FICA/Medicare contributions. New Mexico uses a progressive income tax system with rates that vary based on income and filing status. This calculator helps residents, part-year residents, and nonresidents forecast their total tax and net pay for 2026/27.

New Mexico offers credits such as the Low- and Middle-Income Tax Credit and Child Day Care Credit. The tool allows you to see how these and other deductions can affect your overall tax bill and potential refund.

Quick Access Tools

Quick New Mexico Tax Calculator

Enter income and filing status, then select Calculate. Use advanced tabs to include deductions, dependents, and state-specific credits like the Low- and Middle-Income Tax Credit. You can also add federal withholdings and pre-tax savings to refine your calculation.

Input key: F Used in Federal tax calculations S Used in State tax calculations

Quick Tax Calculation Detailed Tax Calculation
Filing Information Quick Inputs Income Details Deductions & Adjustments State Options IRA, Pensions & Annuities Withholdings

Filing Information

Set your filing status, dependants and personal details so the calculator can apply the correct Federal and State rules.

Quick Inputs

Provide a summary of your income and deductions to calculate your Federal and State tax position quickly.

Income Details

Enter the specific types of income that contribute to your Federal Adjusted Gross Income.

For Schedule B

Deductions & Adjustments

Deductions & Adjustments

Include any adjustments to income that reduce your Federal/State Adjusted Gross Income.

State Options

Some states apply local income taxes in addition to State tax. Enter your local rate if it applies.

IRA, Pensions & Annuities

Enter the details for your retirement contributions and income sources, which are used to compute values on **Form 8606**. This includes contributions to traditional IRAs, 529 savings plans, and rollovers, as well as income from rental properties, farms, unemployment, and other sources. Additionally, provide information on any disaster-related distributions or IRA rollovers you’ve made, and enter your capital gain distributions if applicable. These inputs are essential for accurately calculating your total retirement-related income and determining your tax liabilities or benefits, specifically regarding IRA deductions and distributions as outlined in **Form 8606**.

Withholdings

Enter withheld amounts to calculate refund or balance due.

How to Calculate Income Tax in New Mexico for 2026/27

  1. Enter your gross annual income and applicable adjustments.
  2. Select your filing status and indicate residency (resident, part-year, or nonresident).
  3. Click Calculate to see your estimated New Mexico and federal tax liability, take-home pay, and any expected refund.

Advanced Options

  • Add dependents to estimate child or family-related credits.
  • Include pre-tax deductions like IRA or 401(k) contributions.
  • Enter federal and state withholdings to project refund or balance due.
  • Explore eligibility for low-income or childcare credits under New Mexico tax law.

Related Calculators

Additional Resources

Frequently Asked Questions

Answers to common New Mexico filing questions, including resident versus nonresident rules, credits for low-income earners, and withholding guidelines.

Are military retirement benefits taxed in New Mexico?

No—New Mexico has phased in a military retirement exemption, allowing most or all benefits to be excluded by 2026.

Does New Mexico tax interest and dividends?

Yes—these are taxed as ordinary income with no special rate reductions.

Does New Mexico tax out-of-state income?

Yes—residents must report all worldwide income, but credits are given for taxes paid to other states.

Are alimony payments deductible or taxable?

New Mexico follows federal post-2019 rules—alimony is no longer deductible by the payer nor taxable to the recipient.

Are federal taxes deductible on my NM return?

No—federal income tax payments cannot be deducted on New Mexico returns.

Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.