New Mexico · rates effective Jan 1 – Dec 31, 2026 · verified 2026-08-09
New Mexico Paycheck Calculator 2026
1.5-5.9% state brackets on taxable wages in New Mexico — no local income tax, no state payroll deduction.
New Mexico stopped subtracting allowances when the federal W-4 dropped them: the standard deduction now lives inside nine brackets running from 1.5% to 5.9%. This calculator runs the state's own 2026 tables and reproduces its published example to the cent.
Official 2026 tables, never copiedSources stamped & dated99 golden tests before publish
CEBy the Calceva data desk · Verified against official sources · Updated 2026-08-09 · 3 min read
When the federal W-4 removed withholding allowances in 2020, New Mexico rebuilt its tables rather than keep asking for a number nobody had. There is no state certificate to file and nothing is subtracted from your wage before the brackets: the standard deduction is folded into them, which is why the first slice of your pay is taxed at nothing at all.
Nine bands is unusually fine
Most states make do with three or five. New Mexico runs 1.5%, 3.2%, 4.3%, 4.7%, 4.9% and 5.9% across nine bands, and the effect is a curve that climbs gently: a married employee on $1,000 a week has $21.80 withheld, which is the state's own published example and the figure this page reproduces to the cent.
Nothing local, and one thing that changed for employers
No New Mexico city or county taxes wages. What did change for 2026 is reporting, not rates: House Bill 218 requires every employer to report quarterly from the quarter beginning 1 January 2026. It does not touch what comes out of your paycheck.
No. New Mexico has no state withholding certificate and subtracts nothing for allowances - the standard deduction is built into the tables, following the 2020 federal W-4 change.
What are New Mexico's 2026 rates?
Nine brackets at 1.5%, 3.2%, 4.3%, 4.7%, 4.9% and 5.9%, published in FYI-104 for wages paid on or after 1 January 2026.
Did House Bill 218 change my withholding?
No. HB 218 requires employers to report quarterly starting with the quarter beginning 1 January 2026. It changes reporting, not rates.
Does any New Mexico city tax my wages?
No. There are no local income taxes in New Mexico.
We never copy another calculator. Each rate is read from the official document, dated, and re-checked when agencies publish changes. This page's paper trail:
Verified 2026-08-09
NM TRD, FYI-104 REV. 11/2025 (PDF read in full, 10 p., 24 schedules parsed by coordinates) — FYI-104 REV. 11/2025, "NEW MEXICO WITHHOLDING TAX, Effective January 1, 2026": percentage method tables for eight payroll periods and three filing statuses (single, married, head of household), nine brackets each, rates 1.5%, 3.2%, 4.3%, 4.7%, 4.9% and 5.9%. The tables carry the standard deduction inside them - the 2020 and later federal W-4 removed the allowance deduction, so nothing is subtracted from the wage before the tables.
Verified 2026-08-09
NM TRD, FYI-104 REV. 11/2025, page 3 (worked example) — Worked example in the same publication, page 3: "A married employee has taxable wages of $1,000.00 weekly." Table 1, section (b) married: over $790 but not over $1,098, the tax is $12.77 plus 4.3% of the excess over $790. $1,000.00 - $790.00 = $210.00 x 0.043 = $9.03; $12.77 + $9.03 = $21.80 withholding tax due.
Verified 2026-08-09
NM TRD, FYI-104 REV. 11/2025, page 1 — House Bill 218, passed in the 2025 session, requires every employer or payer to report quarterly beginning with the quarter starting January 1, 2026. It changes reporting, not rates.
Federal lines
Federal income tax, Social Security and Medicare on this page follow IRS Rev. Proc. 2025-32, Publication 15 and Publication 15-T, verified 2026-08-07. Our federal engine reproduces 2,175 of 2,175 Publication 15-T cells on every build. The six federal sources, itemised.
Matches the agency
Reproduces the agency’s own published figures. Our implementation of the New Mexico withholding formula reproduces the worked example of FYI-104 (REV. 11/2025) exactly as the agency prints it, re-checked on every build. Check them in the official PDF.