 New Mexico Tax Summary
Sales Taxes
State Sales Tax: 5% (prescription drugs exempt); county and city taxes may add another 2.1875%.
Gasoline Tax: 18.9 cents/gallon
Diesel Fuel Tax: 19.9 cents/gallon
Gasohol Tax: 18.9 cents/gallon
Personal Income Taxes
Tax Rate Range: - 1.7%; High - 8.2%
Income Brackets: * Lowest - $5,500; Highest - $65,000
Number of Brackets: 7
Personal Exemptions: ** Single - $3,000; Married - $6,000;
Dependents - $3,000
Additional Exemptions: Taxpayer or spouse 65 or older - up to $8,000
Standard Deduction: Federal amount
Medical/Dental Deduction: Credit of 3% of unreimbursed prescription drug expenses to maximum of $150 per individual or $300 per return
Federal Income Tax Deduction: None
Retirement Income Taxes: Taxpayers 65 and older may exempt up to $8,000 (from any income source) if their income is under $28,5000 (individual filers) or $51,000 (married filing jointly).
Retired Military Pay: See above.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.
Property Taxes
The state assesses residences at market value. Assessors usually determine market value by the sales-comparison approach which matches a property's value to that of similar properties. The valuation of a residence that did not change hands in the prior year may not increase by more than 3% annually. One-third of the property's market value is its taxable value, which may be further reduced by exemptions (of $2,000 each) for veterans and heads of households. Homeowners 65 and older who earn $16,000 ($25,000 in Sandoval County) or less are eligible for a credit of up to $250 for married filing jointly or $125 for single taxpayers. Call 505-827-0870 for details.
Inheritance and Estate Taxes
There is no inheritance tax but an inheritance may be reflected in a taxpayer's modified gross income and taxed that way. The estate tax is related to federal estate tax collection.
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