Retirement Tax Breakdown for New Mexico Residents

Complete New Mexico retirement tax guide: income tax rates, capital gains treatment, Social Security and pension taxation, property taxes, and sales tax. Overall retiree-friendliness rank: #40 of 51.

State Income Tax
5.9% top rate

5 bracket(s)

Capital Gains Rate
5.9%

Treated as ordinary income

Property Tax Rate
0.67%

#28 (Above Avg)

Sales Tax Rate
7.7%

State 4.875% + local avg 7.7%

Less Tax-Friendly State

New Mexico exempts some Social Security but taxes most other retirement income. Graduated rates are moderate. Property taxes are low but sales taxes are high.

Retirement Income Taxation

Social Security

Not taxed

Pension Income

Taxable

Retirement Exemption

None

Tax Comparison Summary

State income tax5.9% top
Capital gains5.9%
Property tax0.67% effective
Sales tax7.7% combined
Overall retiree rank#40 of 51

New Mexico Income Tax Brackets

State Tax Bracket Schedule

RateFromTo
1.7%$0$5,500
3.2%$5,500$11,000
4.7%$11,000$16,000
4.9%$16,000$210,000
5.9%$210,000No limit

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