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.
5 bracket(s)
Treated as ordinary income
#28 (Above Avg)
State 4.875% + local avg 7.7%
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.
Not taxed
Taxable
None
| Rate | From | To |
|---|---|---|
| 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% | $210,000 | No limit |
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