New Mexico Tax Rates 2025: A Comprehensive Guide
New Mexico, known for its rich cultural heritage and stunning landscapes, has a unique tax system that can be quite complex for both residents and visitors. Understanding the tax rates for 2025 is essential for anyone doing business or living in the state. Let’s delve into the details of New Mexico’s tax rates for the upcoming year.
Personal Income Tax Rates
New Mexico’s personal income tax is progressive, meaning the rate increases as your income increases. For the tax year 2025, the rates are as follows:
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1% on the first $2,000 of taxable income
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2% on taxable income between $2,001 and $6,000
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3% on taxable income between $6,001 and $12,000
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4% on taxable income between $12,001 and $24,000
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5% on taxable income between $24,001 and $36,000
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6% on taxable income between $36,001 and $48,000
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7% on taxable income between $48,001 and $60,000
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8% on taxable income between $60,001 and $72,000
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9% on taxable income between $72,001 and $84,000
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10% on taxable income over $84,000
It’s important to note that New Mexico does not have a state sales tax, which means residents pay higher income tax rates to compensate for the lack of sales tax.
Corporate Income Tax Rates
New Mexico’s corporate income tax rates are also progressive. The rates for 2025 are as follows:
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4.9% on taxable income up to $1 million
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5.9% on taxable income over $1 million
This rate is one of the highest in the nation, and it’s important for businesses to factor this into their financial planning.
Property Tax
New Mexico levies a property tax on real estate and personal property. The tax rate is determined by the county in which the property is located. For 2025, the average property tax rate in New Mexico is approximately 1.4% of the property’s assessed value. This rate can vary significantly from one county to another.
Property owners should be aware that assessments are typically based on the property’s fair market value, which can change over time. It’s advisable to review your assessment annually to ensure accuracy.
Excise Taxes
New Mexico imposes excise taxes on certain goods and services, including fuel, tobacco, and alcohol. The rates for these taxes are as follows:
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Fuel: 17.62 cents per gallon
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Tobacco: $1.66 per pack of 20 cigarettes
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Alcohol: 17.62 cents per gallon of beer, wine, and spirits
These taxes are in addition to the sales tax and are an important consideration for businesses that sell these products.
Understanding the tax rates in New Mexico for 2025 is crucial for both individuals and businesses. By being aware of these rates, you can make informed financial decisions and ensure compliance with state tax laws.
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