New Mexico paycheck calculator
New Mexico taxes wages on six brackets, a structure that took effect for tax year 2025. There is no New Mexico withholding form: employers work straight from your federal W-4 filing status using the state's percentage-method tables, and every covered worker also pays a small flat workers' compensation fee each quarter.
Take-home per paycheck
$2,263
- Take-home per year
- $58,845
- Total taxes per year
- $16,155
- Effective tax rate
- 21.5%
- Marginal tax rate
- 34.5%
- New Mexico uses your federal W-4 filing status (Single, Married or Head of Household); allowances and dependents do not change the tables.
Take-home per paycheck: $2,263 every 2 weeks
| Line | Every 2 weeks | Per year |
|---|---|---|
| Gross pay | $2,885 | $75,000 |
| Federal income tax | −$295 | −$7,670 |
| Social Security | −$179 | −$4,650 |
| Medicare | −$42 | −$1,088 |
| State income tax | −$105 | −$2,739 |
| NM workers' comp fee | −$0 | −$9 |
| Take-home pay | $2,263 | $58,845 |
- Take-home pay$58,84578%
- Federal income tax$7,67010%
- Social Security & Medicare$5,7388%
- State & local taxes$2,7484%
How New Mexico taxes your paycheck
- Up to 5.9%
- Six brackets from 1.5% to 5.9%; head of household filers use the married filing jointly brackets.
- NM workers' comp fee
- NM workers' comp fee $9.00/yr
- None
- New Mexico cities and counties do not levy income taxes on wages. New Mexico employees also pay a small flat workers' compensation fee each quarter.
- 5.9%
- When federal tax on a bonus is withheld at a flat percentage, New Mexico withholding is a flat 5.9% of the bonus. Otherwise the employer uses the same method it uses for federal withholding.
New Mexico income tax rates for 2026
These are the return rates. Your employer withholds using New Mexico's withholding method (Percentage method tables (FYI-104, New Mexico Withholding Tax, effective January 1, 2026)), which the calculator above follows.
| Taxable income | Rate |
|---|---|
| $0 – $5,500 | 1.5% |
| $5,500 – $16,500 | 3.2% |
| $16,500 – $33,500 | 4.3% |
| $33,500 – $66,500 | 4.7% |
| $66,500 – $210,000 | 4.9% |
| Over $210,000 | 5.9% |
| Taxable income | Rate |
|---|---|
| $0 – $8,000 | 1.5% |
| $8,000 – $25,000 | 3.2% |
| $25,000 – $50,000 | 4.3% |
| $50,000 – $100,000 | 4.7% |
| $100,000 – $315,000 | 4.9% |
| Over $315,000 | 5.9% |
| Taxable income | Rate |
|---|---|
| $0 – $8,000 | 1.5% |
| $8,000 – $25,000 | 3.2% |
| $25,000 – $50,000 | 4.3% |
| $50,000 – $100,000 | 4.7% |
| $100,000 – $315,000 | 4.9% |
| Over $315,000 | 5.9% |
Other taxes on New Mexico paychecks
| Employee payroll tax | Rate | Wage base | Annual max |
|---|---|---|---|
| Workers' Compensation Fee (employee share) | $9.00/yr | — | $9 |
$47,210 in New Mexico
$47,210 is the median annual wage in New Mexico (May 2025, BLS OEWS). A single filer paid every two weeks with no other income or deductions takes home $38,672 a year, or $1,487 per paycheck.
| Line | Every 2 weeks | Per year |
|---|---|---|
| Gross pay | $1,816 | $47,210 |
| Federal income tax | -$134 | -$3,485 |
| Social Security | -$113 | -$2,927 |
| Medicare | -$26 | -$685 |
| State income tax | -$55 | -$1,432 |
| NM workers' comp fee | -$0 | -$9 |
| Take-home pay | $1,487 | $38,672 |
How New Mexico withholds income tax
Employers use the Taxation and Revenue Department's FYI-104 tables for the pay period. Each table has a column for single, married and head of household filers. Pay up to a threshold has no withholding; above it, a fixed amount plus a percentage of the excess is withheld, much like the federal percentage method.
New Mexico has no state version of the W-4. If you want a different amount withheld for New Mexico, you can fill out a second copy of the federal W-4 marked "For New Mexico State Withholding Only" and give it to your employer, for example to request extra withholding.
Withholding applies to the same taxable wages as federal withholding, so traditional 401(k) contributions and pre-tax health and HSA deductions also lower your New Mexico withholding.
Brackets and filing status
The rates run from 1.5% to 5.9%. Head of household filers use the same, wider brackets as married couples filing jointly, which makes a noticeable difference for single parents compared with the single brackets.
If you are married but ask for federal withholding at the higher single rate, New Mexico must also use the single rate for your state withholding.
Workers' compensation fee
New Mexico charges a quarterly fee for each employee covered by the Workers' Compensation Act to fund the Workers' Compensation Administration. Part of it is paid by the employer and part is deducted from the worker's pay. The worker's share went up on July 1, 2025 and is scheduled to rise again in 2028 and 2033.
Bonuses and local taxes
For bonuses and other supplemental pay, employers follow the same method they use for federal withholding. When federal tax on a bonus is withheld at a flat percentage, New Mexico's flat rate is the top income tax rate.
New Mexico cities and counties do not tax wages.
What changed recently
- 2026: Starting with the first quarter of 2026, employers must report each employee's wages and state tax withheld quarterly on Form TRD-41431, which also replaces the old workers' compensation fee return. Source
- 2025: The employee share of the workers' compensation fee rose from $2.00 to $2.25 per quarter on July 1, 2025. Source
- 2025: New income tax brackets took effect for tax year 2025, with six rates from 1.5% to 5.9%; the 2026 withholding tables reflect them. Source
Questions people ask
What are the New Mexico income tax rates for 2026?
New Mexico has six rates: 1.5%, 3.2%, 4.3%, 4.7%, 4.9% and 5.9%. Single filers reach the top rate above $210,000 of taxable income; joint and head of household filers above $315,000.
Does New Mexico have its own W-4 form?
No. Employers use your federal W-4. To change only your New Mexico withholding, give your employer a separate federal W-4 marked "For New Mexico State Withholding Only."
What is the New Mexico bonus tax rate?
If your employer withholds federal tax on a bonus at a flat rate, New Mexico withholding is a flat 5.9% of the bonus. Otherwise the bonus is withheld the same way as your regular pay.
What is the workers' compensation fee on my New Mexico paycheck?
It is a state fee that funds the Workers' Compensation Administration. Covered employees pay $2.25 per quarter from July 1, 2025 through June 30, 2028, and employers pay $2.55.
Do Albuquerque or Santa Fe have a city income tax?
No. New Mexico cities and counties do not tax wages.
Sources
- FYI-104 (Rev. 11/2025), New Mexico Withholding Tax — Effective January 1, 2026 · retrieved 2026-10-16
- Workers' Compensation Fee · retrieved 2026-10-16
- Frequently Asked Questions (quarterly assessment fee) · retrieved 2026-10-16
- Publication 15-T (2026), Federal Income Tax Withholding Methods · retrieved 2026-10-16
- Publication 15 (2026), (Circular E), Employer's Tax Guide · retrieved 2026-10-16
- Rev. Proc. 2025-32: 2026 inflation-adjusted tax items · retrieved 2026-10-16
- Form W-4 (2026), Employee's Withholding Certificate · retrieved 2026-10-16
- Publication 505 (2026), Tax Withholding and Estimated Tax · retrieved 2026-10-16
- Form 1040-ES (2026), Estimated Tax for Individuals · retrieved 2026-10-16
- Schedule 1-A (Form 1040) 2026, Additional Deductions (early-release draft) · retrieved 2026-10-16
- Schedule 8812 (Form 1040) 2026, Credits for Qualifying Children and Other Dependents (early-release draft) · retrieved 2026-10-16
- Working Families Tax Cuts: Individuals and workers (tips, overtime, seniors, car loan interest) · retrieved 2026-10-16
- Working Families Tax Cuts provisions (charitable deduction for non-itemizers, Section 70424) · retrieved 2026-10-16
- Child Tax Credit · retrieved 2026-10-16
- IR-2025-111: 401(k) limit increases to $24,500 for 2026 · retrieved 2026-10-16
- Rev. Proc. 2025-19: 2026 HSA limits · retrieved 2026-10-16
- BLS Occupational Employment and Wage Statistics (OEWS), May 2025, median annual wage by state · retrieved 2026-10-16