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How to Calculate 2020 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 2020 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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ezPaycheck: Small Business Payroll Solution


New Mexico State Tax Tables

Tax rate used in calculating New Mexico state tax for year 2020

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 2020)<
  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. Apply the taxable income computed in step 4 to the following table to determine the annual New Mexico tax withholding.

  6. 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
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    Of Excess
    Over:

    $          0 $>  6,200 $        0 plus 0.0% $         0
         6,200       11,700           0 plus 1.7% >   6,200
         11,700     17,200      93.50 plus 3.2%     11,700
       17,200     22,200    269.50 plus 4.7%   17,200
       22,200 <   and over    504.50 plus 4.9%   22,200 <


    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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    blank
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    Of Excess
    Over:

    $         0 > 12,400 $   0.00 plus 0% $         0
        12,400    20,400      0.00 plus 1.7% >  12,400
      20,400    28,400   136.00 plus 3.2%   20,400
      28,400    36,400   392.00 plus 4.7%   28,400
      36,400 <   and over   768.00 plus 4.9%   36,400 <

    Head of Household

    If the Amount of
    Taxable Income Is:

    The Amount of New Mexico Tax
    Withholding Should Be:


    Over:

    But Not
    Over:

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    blank
    blank

    Of Excess
    Over:

    $         0 > 9,325 $   0.00 plus 0% $         0
        9,325    17,325      0.00 plus 1.7% >  9,325
      17,325    25,325   136.00 plus 3.2%   17,325
      25,325    33,325   392.00 plus 4.7%   25,325
      33,325 <   and over   768.00 plus 4.9%   33,325 <

  7. 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

  • How to handle tips in restaurants

  • 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