Rigorously tested for accuracy and speed, this New Mexico salary payroll calculator makes getting everyone paid a much easier process. It’s also backed by a tax database that’s constantly updated with the latest tax data. With so many advanced tools together in one place, you can take guesswork out of the payroll process and eliminate unnecessary frustration along the way.
Below, you’ll find three of the most frequently-asked-questions about our free salary payroll calculator and New Mexico state income taxes:
- Does New Mexico impose a state income tax on residents’ personal earnings?
Yes. Residents of New Mexico are required to pay between 1.7% and 4.9% of their work earnings in state income tax.
- Does New Mexico tax capital gains at the same rate as work income?
No. New Mexico gives investors to deduct a certain amount of their capital gains. This deduction amounts to the greater of 50% of their capital gains and $1,000.
- How does New Mexico tax retirement income?
Unlike many states, New Mexico taxes Social Security benefits, pensions, and retirement accounts. For retirees who meet specific income requirements, that state allows up to an $8,000 exemption.