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How to Calculate 2016 New Mexico State Income Tax by Using State Income Tax Table

1. Find your income exemptions

2. Find your pretax deductions, including 401K, flexible account contributions ...

3. Find your gross income

4. Check the 2016 New Mexico state tax rate and the rules to calculate state income tax

5. Calculate your state income tax step by step

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  New Mexico STATE TAX TABLES

Tax rate used in calculating New Mexico state tax for year 2016

State Abbreviation:

NM

State Tax Withholding State Code:

35

Acceptable Exemption Form:

None

Basis For Withholding:

Federal Exemptions

Acceptable Exemption Data:

None

TSP Deferred:

Yes

Special Coding:

None

Additional Information:

A state tax certificate is not required since Federal exemptions are used in the computation of the state formula.


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Withholding Formula >(New Mexico Effective 2016)<
  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 =>$4,050< 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.

  7. 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
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    Of Excess
    Over:

    $          0 $>  2,250 $        0 plus 0.0% $         0
         2,250       7,750           0 plus 1.7% >   2,250
         7,750     13,250      93.50 plus 3.2%     7,750
       13,250     18,250    269.50 plus 4.7%   13,250
       18,250 <   and over    504.50 plus 4.9%   18,250 <


    Married

    If the Amount of
    Taxable Income Is:

    The Amount of New Mexico Tax
    Withholding Should Be:


    Over:

    But Not
    Over:

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    Of Excess
    Over:

    $         0 > 8,550 $   0.00 plus 0% $         0
        8,550    16,550      0.00 plus 1.7% >  8,450
      16,550    24,550   136.00 plus 3.2%   16,550
      24,550    32,550   392.00 plus 4.7%   24,550
      32,550 <   and over   768.00 plus 4.9%   32,550 <

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

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