For tax year 2022, that means single filers can claim a standard deduction of $12,950 and joint filers can claim a standard deduction of $25,900. Deductions, both itemized and standard, match the federal deductions. Rules for filing taxes in New Mexico are very similar to the federal tax rules. As shown in the table below, there are four income brackets, with higher tax rates applying to higher earnings. New Mexico’s income tax system is modeled after the federal income tax, though it has fewer income tax brackets and significantly lower rates.

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SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. Below we will take a closer look at the rules and exceptions for each of these taxes individually, as well as a few others such as the gas and cigarette taxes.Ī financial advisor can help you understand how taxes fit into your overall financial goals. Of course, the impact of these taxes varies depending on the financial circumstance of each taxpayer. New Mexico ranks below the national average for each of these taxes. Taxpayers in the Land of Enchantment pay three primary forms of state and local taxes: a state income tax, local property taxes and state and local gross receipts taxes.

Gas tax: 17.00 cents per gallon of regular gasoline, 21.00 cents per gallon of diesel.

Property tax: 0.73% average effective rate.

2020 taxcaster