Income Tax
New Mexico's personal income tax has a top marginal rate of 5.9%, applied progressively across five brackets.
Individual income tax collections
1990–2025Census State Government Tax Collections (FRED NMINCTAX).
| Indicator | New Mexico | U.S. |
|---|---|---|
| Top marginal income tax rate (%) | 5.9 | 5 |
Property Tax
New Mexico has one of the lowest effective property tax rates in the country at about 0.67% of home value.
State-level property tax collections
1990–2025Census State Government Tax Collections; excludes local property taxes (FRED NMPROPTAX).
| Indicator | New Mexico | U.S. |
|---|---|---|
| Effective property tax rate (%) | 0.67 | 0.9 |
Sales Tax
New Mexico levies a gross receipts tax rather than a traditional sales tax, with a state rate of 4.875% and combined local rates averaging about 7.6%.
General sales tax collections
1990–2025Census State Government Tax Collections (FRED NMSALESTAX).
| Indicator | New Mexico | U.S. |
|---|---|---|
| Avg. combined sales tax rate (%) | 7.6 | 7.1 |
Tax Burden
New Mexico's overall state and local tax burden is about 9.7% of income, close to the national average.
State tax collections per resident
1990–2025Census tax collections (NMTOTLTAX) divided by Census resident population (NMPOP).
| Indicator | New Mexico | U.S. |
|---|---|---|
| Tax burden (% of income) | 9.7 | 9.9 |
Tax Revenue
New Mexico's state tax revenue relies heavily on oil and gas royalties and gross receipts taxes, generating record surpluses in recent years.
State tax collections
1990–2025Census Annual Survey of State Government Tax Collections, fiscal years (FRED NMTOTLTAX).
| Indicator | New Mexico | U.S. |
|---|---|---|
| Oil & gas revenue share (%) | 35 | 3 |
- •Oil and gas revenues have driven multi-billion-dollar budget surpluses for New Mexico in recent years.