How New Mexico payroll taxes impact your 2026 paycheck

New Mexico uses a progressive income tax system with rates ranging from 1.7% up to 5.9% for the highest earners. Different pieces of your income fall into each bracket, so your effective rate is lower than your top marginal rate.

Because we already maintain federal, FICA, and New Mexico withholding tables for every filing status, the calculator instantly shows both per-paycheck and annual net pay. Toggle between salary and hourly pay, include pre-tax deductions such as 401(k), HSA, or health insurance, and watch the tool recompute your New Mexico take-home pay immediately.

Quick New Mexico tax facts

  • New Mexico marginal rates span 1.7% to 5.9% depending on income and filing status.
  • Federal income tax, Social Security, and Medicare withholding apply in every state, including New Mexico.
  • You can pre-fill the calculator by visiting https://mynetpay.org/?state=NM#calculator.
  • Local payroll taxes may apply in certain New Mexico cities or counties—add them after reviewing your pay stub.

How to use the New Mexico paycheck calculator

  1. Select salary or hourly pay and enter your gross income.
  2. Choose New Mexico as your state (using ?state=NM in the URL fills it in automatically).
  3. Pick your pay frequency and filing status, then add any 401(k), HSA, or health insurance deductions.
  4. Click “Calculate My Paycheck” and review the per-paycheck plus annual summary, including federal, New Mexico, and FICA withholding.

New Mexico local taxes and paycheck adjustments

Many New Mexico workers also face local payroll or city wage taxes. Use your latest pay stub to see those percentages and add them as post-tax deductions inside the calculator. This is especially important if you work in a major metro area or a school district that levies its own earned income tax.

2026 planning tips for New Mexico employees

  • Update your W-4 (and any New Mexico-specific withholding form) if you picked up a second job, got married, or expect significant itemized deductions in 2026.
  • Leverage pre-tax benefits—every dollar you contribute to a 401(k) or HSA reduces both federal and New Mexico taxable income (unless you live in a no-tax state).
  • Track your year-to-date taxable wages. Once you hit the Social Security wage base, your take-home pay will jump because OASDI withholding stops for the rest of the year.

Get your exact New Mexico take-home pay

Open the calculator with New Mexico pre-selected and model salary, hourly, bonus, or commission income in seconds.

Launch the New Mexico calculator