The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for any taxable year beginning on or after January 1, 2025:

1. A. For married individuals filing joint returns, heads of household and surviving spouses:

   For taxable income: The tax shall be: Not over $8,000 1.5% of taxable income Over $8,000 but not over $25,000 $120 plus 3.2% of excess over $8,000 Over $25,000 but not over $50,000 $664 plus 4.3% of excess over $25,000 Over $50,000 but not over $100,000 $1,739 plus 4.7% of excess over $50,000 Over $100,000 but not over $315,000 $4,089 plus 4.9% of excess over $100,000 Over $315,000 $14,624 plus 5.9% of excess over $315,000.

   For taxable income:

   The tax shall be:

   Not over $8,000

   1.5% of taxable income

   Over $8,000 but not over $25,000

   $120 plus 3.2% of excess over $8,000

   Over $25,000 but not over $50,000

   $664 plus 4.3% of excess over $25,000

   Over $50,000 but not over $100,000

   $1,739 plus 4.7% of excess over $50,000

   Over $100,000 but not over $315,000

   $4,089 plus 4.9% of excess over $100,000

   Over $315,000

   $14,624 plus 5.9% of excess over $315,000.

2. B. For single individuals and for estates and trusts:

   For taxable income: The tax shall be: Not over $5,500 1.5% of taxable income Over $5,500 but not over $16,500 $82.50 plus 3.2% of excess over $5,500 Over $16,500 but not over $33,500 $434.50 plus 4.3% of excess over $16,500 Over $33,500 but not over $66,500 $1,165.50 plus 4.7% of excess over $33,500 Over $66,500 but not over $210,000 $2,716.50 plus 4.9% of excess over $66,500 Over $210,000 $9,748 plus 5.9% of excess over $210,000.

   For taxable income:

   The tax shall be:

   Not over $5,500

   1.5% of taxable income

   Over $5,500 but not over $16,500

   $82.50 plus 3.2% of excess over $5,500

   Over $16,500 but not over $33,500

   $434.50 plus 4.3% of excess over $16,500

   Over $33,500 but not over $66,500

   $1,165.50 plus 4.7% of excess over $33,500

   Over $66,500 but not over $210,000

   $2,716.50 plus 4.9% of excess over $66,500

   Over $210,000

   $9,748 plus 5.9% of excess over $210,000.

3. C. For married individuals filing separate returns:

   For taxable income: The tax shall be: Not over $4,000 1.5% of taxable income Over $4,000 but not over $12,500 $60.00 plus 3.2% of excess over $4,000 Over $12,500 but not over $25,000 $332 plus 4.3% of excess over $12,500 Over $25,000 but not over $50,000 $869.50 plus 4.7% of excess over $25,000 Over $50,000 but not over $157,500 $2,044.50 plus 4.9% of excess over $50,000 Over $157,500 $7,312 plus 5.9% of excess over $157,500.

4. For taxable income:
5. The tax shall be:
6. Not over $4,000
7. 1.5% of taxable income
8. Over $4,000 but not over $12,500
9. $60.00 plus 3.2% of excess over $4,000
10. Over $12,500 but not over $25,000
11. $332 plus 4.3% of excess over $12,500
12. Over $25,000 but not over $50,000
13. $869.50 plus 4.7% of excess over $25,000
14. Over $50,000 but not over $157,500
15. $2,044.50 plus 4.9% of excess over $50,000
16. Over $157,500

17. $7,312 plus 5.9% of excess over $157,500.

    1. D. The tax on the sum of any lump-sum amounts included in net income is an amount equal to five multiplied by the difference between:

       1. (1) the amount of tax due on the taxpayer's taxable income; and
       2. (2) the amount of tax that would be due on an amount equal to the taxpayer's taxable income and twenty percent of the taxpayer's lump-sum amounts included in net income.

History: Laws 2005, ch. 104, § 4; 2019, ch. 270, § 12; 2024, ch. 67, § 5.

ANNOTATIONS

Compiler's notes. — Laws 2025, ch. 130, § 156 repealed that version of § 7-2-7 NMSA 1978 that was enacted by Laws 2005 (1st S.S.), ch. 3, § 2, effective July 1, 2025.

The 2024 amendment, effective January 1, 2025, restructured the personal income tax rates and income brackets to increase the number of brackets, adjust the rates, and change the income range within each bracket; and deleted former Subsections A through C and added new Subsections A through C.

Applicability. — Laws 2024, ch. 67, § 42 provided that the provisions of Laws 2024, ch. 67, §§ 5, 8, 10 and 32 through 37 apply to taxable years beginning on or after January 1, 2025.

The 2019 amendment, effective December 18, 2020, revised individual income tax rates and individual income tax brackets; in Subsection A, after "If the taxable income is", deleted the remainder of the subsection; and deleted former Subsections B and C, and added new Subsections B and C.

Compiler’s notes. — Pursuant to Laws 2019, ch. 270, § 61, the effective date of Laws 2019, ch. 270, § 12 is December 18, 2020. On December 18, 2020, the secretary of the New Mexico department of finance and administration certified to the New Mexico compilation commission and the director of the legislative council service that fiscal year 2020 recurring general fund revenues are less than five percent above fiscal year 2019 recurring general fund revenues.