How to Calculate 2023 New Mexico State Income Tax by Using State Income Tax Table

1. Find your income exemptions 2. Find your pretax deductions, including 401K, flexible account contributions ... 3. Find your gross income 4. Check the 2023 New Mexico state tax rate and the rules to calculate state income tax 5. Calculate your state income tax step by step 6. If you want to simplify payroll tax calculations, you can download ezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. You can try it free for 30 days, with no obligation and no credt card needed. Learn more about the in house payroll tax solution for New Mexico small businesses here.

ezPaycheck: Small Business Payroll Solution

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New Mexico State Tax Tables

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Tax rate used in calculating New Mexico state tax for year 2023

State Abbreviation:	NM
State Tax Withholding State Code:	35
Acceptable Exemption Form:	None
Basis For Withholding:	Federal Exemptions
Acceptable Exemption Data:	None
TSP Deferred:	Yes
Special Coding:	None
Additional Information:	A state tax certificate is not required since Federal exemptions are used in the computation of the state formula.

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Withholding Formula >(New Mexico Effective 2023)<

1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
   
   
2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
   
   
3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
   
   
4. Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
   
   
5. Apply the taxable income computed in step 4 to the following table to determine the annual New Mexico tax withholding.
   
   

Tax Withholding Table Single or Head of Household
If the Amount of Taxable Income Is:		The Amount of New Mexico Tax Withholding Should Be:
Over:	But Not Over:	blank	blank	blank	Of Excess Over:
$          0	$>  6,925	$        0	plus	0.0%	$         0
6,925	12,425	0	plus	1.7%	>   6,925
12,425	17,925	93.50	plus	3.2%	11,975
17,925	22,925	269.50	plus	4.7%	17,925
22,925 <	216,925	504.50	plus	4.9%	22,925 <
216,925 <	and over	10,010	plus	5.9%	216,925 <





Married
If the Amount of Taxable Income Is:		The Amount of New Mexico Tax Withholding Should Be:
Over:	But Not Over:	blank	blank	blank	Of Excess Over:
$         0	$ > 13,850	$   0.00	plus	0%	$         0
13,850	21,850	0.00	plus	1.7%	>  13,850
21,850	29,850	136.00	plus	3.2%	21,850
29,850	37,850	392.00	plus	4.7%	29,850
37,850 <	328,850	768.00	plus	4.9%	36,950 <
328,850 <	and over	15,027.00	plus	5.9%	328,850 <




Head of Household
If the Amount of Taxable Income Is:		The Amount of New Mexico Tax Withholding Should Be:
Over:	But Not Over:	blank	blank	blank	Of Excess Over:
$         0	$ > 10,400	$   0.00	plus	0%	$         0
10,400	18,400	0.00	plus	1.7%	10,400
18,400	26,400	136.00	plus	3.2%	18,400
26,400	34,400	392.00	plus	4.7%	26,400
34,400 <	325,400	768.00	plus	4.9%	34,400 <
325,400 <	and over	15,027.00	plus	5.9%	325,400 <



6. Divide the annual New Mexico tax withholding by 26 to obtain the biweekly New Mexico tax withholding.

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