New Mexico Tax Rates 2025: An Overview
New Mexico, known for its rich cultural heritage and scenic landscapes, has a unique tax system that varies depending on the type of income and the county of residence. As we delve into the tax rates for 2025, it’s important to understand how these rates can impact both individuals and businesses in the state.
Personal Income Tax Rates
The New Mexico personal income tax is progressive, meaning the rate increases as income levels rise. For the 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 $5,000
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3% on taxable income between $5,001 and $10,000
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4% on taxable income between $10,001 and $20,000
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5% on taxable income between $20,001 and $50,000
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6% on taxable income over $50,000
It’s important to note that these rates can vary slightly depending on the county of residence, as some counties have local option taxes that can add an additional percentage to the state rate.
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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5.9% on the first $500,000 of net income
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7.9% on net income between $500,001 and $2,000,000
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8.9% on net income between $2,000,001 and $10,000,000
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9.9% on net income between $10,000,001 and $50,000,000
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10.9% on net income over $50,000,000
Additionally, New Mexico has a gross receipts tax, which is a flat tax on the gross receipts of businesses, regardless of their net income. The rate for this tax is 5.125%.
Property Tax Rates
New Mexico’s property tax rates are determined at the county level. The state does not impose a general property tax, so the rates can vary widely. Property taxes are used to fund local government services and are based on the assessed value of the property.
The assessment rate, which is the percentage of the property’s market value used to determine the assessed value, can also vary by county. For example, in Bernalillo County, the assessment rate is 25% of the property’s market value, while in Santa Fe County, it is 25.5%.
Conclusion
Understanding the tax rates in New Mexico for 2025 is crucial for both individuals and businesses. The state’s progressive income tax rates, along with the corporate income tax and property tax, can significantly impact financial planning and business decisions. As always, it’s advisable to consult with a tax professional to ensure compliance with all applicable tax laws and to optimize your tax situation.