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 downloadezPaycheck 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

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.
   
   

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	blank	blank	Of Excess Over:
$          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 <





Married
If the Amount of Taxable Income Is:		The Amount of New Mexico Tax Withholding Should Be:
Over:	But Not Over:	blank	blank	blank	Of Excess Over:
$         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 <



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

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