How to Calculate 2017 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 2017 New Mexico state tax rate and the rules to calculate state income tax

5. Calculate your state income tax step by step

6. If you want to simplify payroll tax calculations, you can download ezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. You can try it free for 30 days, with no obligation and no credt card needed.

Learn more about the in house payroll tax solution for New Mexico small businesses here.
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New Mexico State Tax Tables

Tax rate used in calculating New Mexico state tax for year 2017

State Abbreviation:


State Tax Withholding State Code:


Acceptable Exemption Form:


Basis For Withholding:

Federal Exemptions

Acceptable Exemption Data:


TSP Deferred:


Special Coding:


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 2017)<
  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:


    But Not


    Of Excess

    $          0 $>  2,300 $        0 plus 0.0% $         0
         2,300       7,800           0 plus 1.7% >   2,300
         7,800     13,300      93.50 plus 3.2%     7,800
       13,300     18,300    269.50 plus 4.7%   13,250
       18,300 <   and over    504.50 plus 4.9%   18,300 <


    If the Amount of
    Taxable Income Is:

    The Amount of New Mexico Tax
    Withholding Should Be:


    But Not


    Of Excess

    $         0 > 8,550 $   0.00 plus 0% $         0
        8,650    16,650      0.00 plus 1.7% >  8,650
      16,650    24,650   136.00 plus 3.2%   16,650
      24,650    32,650   392.00 plus 4.7%   24,650
      32,650 <   and over   768.00 plus 4.9%   32,650 <

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

More Payroll Information for New Mexico Small Business

  • What is the cost of using ezPaycheck payroll software

  • Quick Start Guide for New Payroll Software Customers

  • How to start payroll in mid-year

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  • How to handle the local taxes

  • How to print paycheck on blank stock

  • How to add a customized deduction and withhold it automatically

  • How to set up payroll tax options for church and non-profits

  • How to handle paychecks for both employees and contractors

  • How to file tax forms

  • How to enter the paychecks for after the fact payroll