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New Mexico Overtime Calculator 2026

Calculate your New Mexico take-home pay including overtime. Overtime pays 1.5× your regular rate for all hours over 40 per week under federal FLSA rules.

New Mexico Income Tax Overview

New Mexico has a six-bracket progressive income tax system with rates from 1.5% to 5.9%. New Mexico's standard deduction mirrors the federal amount ($16,100 for single filers), which is generous. No New Mexico city charges a local income tax. New Mexico has significant oil and gas revenue that helps fund state services, contributing to a moderate overall tax burden despite the income tax. Compared to neighboring Texas (no income tax) and Arizona (2.5% flat), New Mexico's income tax is higher. Colorado (4.4% flat) is slightly lower for most earners. New Mexico is generally considered to have a moderate overall tax environment for the Southwest, and its income tax rates are competitive with many eastern states.

Frequently Asked Questions

What is the New Mexico income tax rate for 2026? ▾
New Mexico has six brackets from 1.5% on income up to $5,500 to 5.9% on income above $210,000 for single filers.
Does New Mexico use the federal standard deduction? ▾
Yes. New Mexico's standard deduction matches the federal amount — $16,100 for single filers in 2026.
Do New Mexico cities charge local income tax? ▾
No. No city in New Mexico charges a local income tax on wages.
How does New Mexico compare to Texas for take-home pay? ▾
Texas has no state income tax, making it more favorable. On an $80,000 salary, a Texas worker takes home roughly $4,000 more per year than a New Mexico worker at the same income.

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