New Mexico — Personal Income Tax

New Mexico law requires an individual to file a personal income tax return (Form PIT-1) if both of the following conditions are met: (1) the individual is a New Mexico resident or has income from New Mexico sources, and (2) the individual is required to file a federal income tax return. Every New Mexico resident or part-year resident who meets the federal filing requirement must file. Nonresidents, including those who reside in states without income taxes, must file when they have a federal filing requirement and have income from any New Mexico source whatsoever. New Mexico defines "resident" as an individual domiciled in New Mexico at any time during the taxable year who does not intentionally change domicile by year-end.

Source: New Mexico Taxation and Revenue Department, Personal Income Tax Information and § 7-2-2 NMSA 1978

New Mexico imposes a graduated personal income tax. The state uses a multi-bracket rate table with rates that vary by filing status. The bracket thresholds differ for married individuals filing jointly, single individuals, and married individuals filing separately. The tax applies to the taxpayer's taxable income as computed under New Mexico's Income Tax Act.

Unable to confirm as of 2026-05-27.

Source: New Mexico Taxation and Revenue Department, Personal Income Tax Information

New Mexico personal income tax returns (Form PIT-1) are due on the same date as the taxpayer's federal income tax return. For calendar-year taxpayers, this is typically April 15. Extensions granted by the Internal Revenue Service for federal returns automatically extend the New Mexico filing deadline. However, an extension to file does not extend the time to pay any tax due.

Source: New Mexico Taxation and Revenue Department, Personal Income Tax Information

New Mexico personal income tax begins with the taxpayer's federal adjusted gross income (FAGI) as reported on the federal income tax return. The state uses FAGI as the starting point, then allows taxpayers to make New Mexico-specific adjustments for exemptions, deductions, and income exclusions on Form PIT-1 to arrive at New Mexico taxable income.

Source: New Mexico Taxation and Revenue Department, Personal Income Tax Information

New Mexico imposes a graduated personal income tax under § 7-2-7 NMSA 1978, as amended by House Bill 252 in the 2024 legislative session. The current rate structure took effect for taxable years beginning on or after January 1, 2025, replacing the bracket framework that had been in place since 2005.

The top marginal rate is 5.9 percent. The threshold at which this top rate applies varies by filing status:

• Married filing jointly, heads of household, and surviving spouses: The 5.9% rate applies to taxable income over $315,000. Tax on income at that threshold is $14,624 plus 5.9% of the excess over $315,000.

• Single filers and estates and trusts: The 5.9% rate applies to taxable income over $210,000. Tax on income at that threshold is $9,748 plus 5.9% of the excess over $210,000.

• Married filing separately: The 5.9% rate applies to taxable income over $157,500. Tax on income at that threshold is $7,312 plus 5.9% of the excess over $157,500.

The statute establishes multiple graduated brackets below the top rate, applying progressively lower rates to lower tiers of income. The complete bracket table for each filing status is set forth in § 7-2-7 NMSA 1978 subsections A (joint/HOH/surviving spouse), B (single/estates/trusts), and C (married filing separately). Practitioners should consult the full statutory text for the specific thresholds and rates that apply to income below the top bracket, as the marginal-rate structure means that only the portion of income within each bracket is taxed at that bracket's rate.

The 2024 restructuring was the first major revision to New Mexico's individual income tax brackets in nearly two decades and generally reduced effective tax liability for filers at most income levels when compared to the prior framework.

Source: HB 252, 2024 N.M. Legislative Session (Laws 2024, ch. 67, § 5)

New Mexico law provides that a taxpayer is considered a New Mexico resident for personal income tax purposes if that taxpayer was present in New Mexico for 185 days or more during the taxable year, as defined in § 7-2-2 NMSA 1978. This creates a physical presence test that can trigger resident status based solely on the number of days spent in the state.

Tax treatment of residents vs. nonresidents. New Mexico imposes personal income tax on the net income of every resident. The state also imposes tax on "the net income of every nonresident employed or engaged in business in, into or from this state or deriving any income from any property or employment within this state." In other words, residents are taxed on all income regardless of source, while nonresidents are taxed only on New Mexico-source income.

How the 185-day test operates. The Taxation and Revenue Department's official guidance states plainly that presence in New Mexico for 185 days or more during the year makes a taxpayer a resident under the statute. The guidance does not specify whether "days" means any part of a day, overnight stays, or full 24-hour periods; practitioners should assume each calendar day with any physical presence counts toward the 185-day total unless Department instruction or regulation provides otherwise.

Interaction with domicile-based residency. The Department's published guidance cites the 185-day test as a basis for residency but does not state whether § 7-2-2 NMSA 1978 also includes a separate domicile-based path to resident status, as many states' income tax statutes do. The existing filing-requirement section in this guide references domicile without citing the statutory definition. Unable to confirm from available primary authority whether New Mexico treats the 185-day test as the exclusive residency definition or whether a person domiciled in New Mexico with fewer than 185 days of presence is also a resident.

Part-year residents. The Department provides forms and instructions for part-year residents, but the Department's overview page does not explain how part-year resident status is determined or whether it requires reaching the 185-day threshold during the portion of the year the individual lived in New Mexico. Practitioners should consult Form PIT-1 instructions and Form PIT-B instructions for guidance on part-year allocation.

Credit for taxes paid to other states. A New Mexico resident who is also taxed by another state on the same income may be eligible for a credit under § 7-2-11 NMSA 1978 to mitigate double taxation. Nonresidents with New Mexico-source income generally use Form PIT-B (Allocation and Apportionment of Income Schedule) to report the income attributable to New Mexico.

Practical significance for multi-state taxpayers. The 185-day test has particular relevance for remote workers, retirees, and seasonal residents who divide time between New Mexico and other states. A person who spends six months or more in New Mexico during a calendar year will typically exceed the 185-day threshold and be treated as a resident, subject to tax on worldwide income. Tracking days of presence is essential for individuals with ties to multiple states.

Source: New Mexico Taxation and Revenue Department, Personal Income Tax Information