Tax rate used in calculating New Mexico state tax for year 2008

Withholding Formula (Effective Pay Period 6, 2007)

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. Determine the exemption allowance by applying the following guideline and subtract this amount from the gross annual wages to compute the taxable income.

   Exemption Allowance = $3,450 x Number of Exemptions

6. Apply the taxable income computed in step 5 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	$    1,900	$        0	plus	0.0%	$         0
1,900	7,400	0	plus	1.7%	1,900
7,400	12,900	93.50	plus	3.2%	7,400
12,900	17,900	269.50	plus	4.7%	12,900
17,900	and over	504.50	plus	5.3%	17,900





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	$   7,250	$   0.00	plus	0%	$         0
7,250	15,250	0.00	plus	1.7%	7,250
15,250	23,250	136.00	plus	3.2%	15,250
23,250	31,250	392.00	plus	4.7%	23,250
31,250	and over	768.00	plus	5.3%	31,250



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