File New Mexico Taxes & Get Tax Refund Faster

In New Mexico, individuals are required to file a state tax return if they have filed a federal tax return. If a person has lived in the state for at least 185 consecutive days, he or she is considered a resident.

In the last several years, around $1.5 billion in individual New Mexico taxes have been collected on an annual basis. This puts the state in the bottom 10% of tax revenue when compared to other states.

Taxation rates in the state vary based on income and filing status. The state has five taxation brackets, with rates ranging from 1.7% to 5.9%.

New Mexico Tax Rate Structure for 2024

Single Filers:

• $0 to $5,500: 1.7%
• $5,501 to $11,000: 3.2%
• $11,001 to $16,000: 4.7%
• $16,001 to $210,000: 4.9%
• $210,001 and above: 5.9%

Married Filing Jointly and Head of Household:

• $0 to $8,000: 1.7%
• $8,001 to $16,000: 3.2%
• $16,001 to $24,000: 4.7%
• $24,001 to $315,000: 4.9%
• $315,001 and above: 5.9%

Married Filing Separately:

• $0 to $4,000: 1.7%
• $4,001 to $8,000: 3.2%
• $8,001 to $12,000: 4.7%
• $12,001 to $157,500: 4.9%
• $157,501 and above: 5.9%

Nonresidents must file a tax return using Form PIT-1 if they receive income from any source within the state and are required to file a federal return or if the taxpayer is an active member of the military.

You must file a New Mexico return if:

• You file a federal tax return (residents).
• You want to claim a refund of state taxes withheld - You earned income from New Mexico sources (nonresidents).
• You're military with New Mexico as your home state.

New Mexico follows federal standard deduction amounts for 2024:

• Single: $14,600
• Married filing jointly: $29,200
• Head of household: $21,900
• Married filing separately: $14,600

File New Mexico Taxes Quickly

In general, using the state's online tax filing system is the quickest way to receive any refunds to which a taxpayer is entitled. Called the Taxpayer Access Point, online filing gives residents the option to check the status of their return as well as file an amended return.

If an individual would like to request a tax extension for any reason, he or she must fill out Form RPD-41096, Extension of Time to File. If an extension has already been granted at the federal level, however, the form is not required.

New Mexico taxpayers can access the Taxpayer Access Point or TAP from the Tax and Revenue Department website by clicking on the Online Services tab on the left-hand side of the Individuals page. From there, individuals can create an account and then file a return, track the status of a refund, submit documents and more.

The deadline to file an amended tax return online occurs in mid-October. If a paper return is filed, it should be sent to the Tax and Revenue Department before April 15 at the following address:

P.O. Box 25122 
Santa Fe, NM 87504-5122

If an individual is required to pay additional taxes that were not deducted from employment wages, it should be mailed to:

P.O. Box 8390
Santa Fe, NM 87504-8390

Estimated personal income tax payments should also be mailed to the above address on a quarterly basis.

Special Income Considerations

Social Security Benefits: Social Security is tax-exempt for:

• Single filers with income under $100,000
• Married filing jointly with income under $150,000
• Married filing separately with income under $75,000

Retirement Income: Taxpayers 65 and older may be exempted up to $8,000 of retirement income, depending on income level. Military retirement pay follows the same rules.

Military Income: Active-duty military income is exempt from New Mexico personal income tax. Military presence in the state due to orders doesn't change residency status.

Native American Income: Income earned within reservation, pueblo grant, or Indian country boundaries may be exempt for enrolled tribal members.

Available Tax Credits and Rebates
New Mexico offers generous tax credits and rebates:

• Working Families Tax Credit: 25% of the federal EIC
• Child Income Tax Credit: Up to $622 per qualifying child
• Child Day Care Credit: Up to $1,200 for families with income $30,160 or less
• Property Tax Rebate: Up to $250 for taxpayers 65+ with income below $16,000
• Refundable Medical Care Credit: Up to $2,800 for taxpayers 65+
• Special Needs Adopted Child Tax Credit: $1,500 per child ($750 if married filing separately)

New Mexico Tax Refunds

Electronically filed returns claiming a refund may be followed on the tax.newmexico.gov web site, by submitting a Social Security Number and some additional information. Paper returns or applications for tax refunds are processed within 8-12 weeks.

Residents who do not pay New Mexico taxes on their wages may be considered delinquent. The first step the state will take upon noting a delinquency is to request the payment in full immediately. If payment is not received, a lien is automatically in place, which may lead to seizure of personal property.

Frequently Asked Questions

Are capital gains taxed differently in New Mexico?
No, capital gains are taxed at the same rates as ordinary income, ranging from 1.7% to 5.9%.

Do I need to file if I'm stationed elsewhere?
If New Mexico was your home state when you enlisted and you haven't changed it for tax purposes, you must file as a resident regardless of where you're stationed.

Is my Social Security taxable in New Mexico?
It depends on your total income. Social Security is exempt for single filers under $100,000 and joint filers under $150,000.

Note: States & U.S. territories may make changes to their tax laws with little notice. We do our best to keep this information up-to-date, but it is provided on an "AS IS" basis. For more see our terms.