New Mexico taxes

Personal and business state taxes in New Mexico for the 2025 tax year, filed in 2026.

New Mexico taxes personal income at 1.5% to 5.9%, starting from your federal income and the deduction you took on your federal return. A sole proprietor owes no separate business tax. An LLC files a $20 report every three years. Every corporation, S corporations included, pays a $50 franchise tax, and C corporations also pay 5.9% corporate income tax.

Personal income tax

New Mexico residents file Form PIT-1, due April 15, 2026. If you get a federal extension, New Mexico accepts it and your deadline moves to October 15, 2026, with no New Mexico form needed. The rate is 1.5% on the first $5,500, 3.2% on the next $11,000, 4.3% on the next $17,000, 4.7% on the next $33,000, 4.9% on the next $143,500, 5.9% on everything above $210,000 of taxable income for single filers. Married couples filing jointly, heads of household and surviving spouses use wider steps: 1.5% on the first $8,000, 3.2% on the next $17,000, 4.3% on the next $25,000, 4.7% on the next $50,000, 4.9% on the next $215,000, 5.9% on everything above $315,000.

New Mexico starts from your federal adjusted gross income and uses the same deduction you took on your federal return. Its brackets are set in law and are not adjusted for inflation. The Social Security in your federal income is fully exempt below an income ceiling and not exempt at all above it, with nothing in between, so income near the line matters.

Return
Form PIT-1
Due date
April 15, 2026, or October 15, 2026 with a federal extension
Rates
1.5%, 3.2%, 4.3%, 4.7%, 4.9%, 5.9%
Rates, married filing separately
1.5% on the first $4,000, 3.2% on the next $8,500, 4.3% on the next $12,500, 4.7% on the next $25,000, 4.9% on the next $107,500, 5.9% on everything above $157,500
Deduction
The same deduction you took on your federal return
Dependents
Joint and head of household filers deduct $4,000 for each dependent after the first
Low and middle income exemption
Up to $2,500 for each person on the return, ending at $36,667 of federal income for single filers and $55,000 for joint filers
Social Security
Fully exempt at federal income of $100,000 or less single, $150,000 joint or head of household, $75,000 married filing separately. None of it is exempt above that
Age 65 or over, or blind
Up to $8,000 per person, getting smaller as income rises
Military retirement pay
Up to $30,000 per retiree is exempt

Sole proprietor

A sole proprietor with no LLC owes New Mexico nothing at the business level. The triennial report is for registered entities, so you file none and pay no fee.

Your business profit is taxed on your own Form PIT-1, at the personal rates above.

Single-member LLC

Since July 1, 2024, a New Mexico LLC files a report with the Secretary of State every third year. The fee is $20. It is due by the end of the third calendar month after the LLC's certificate of organization took effect, then every third year in that same month.

Much of the guidance you will find still says New Mexico LLCs file no report, which was true before that date. If your LLC was formed before July 1, 2024, confirm your first due date with the Secretary of State rather than counting three years from formation.

The LLC's profit is taxed on your own Form PIT-1.

Partnership

A New Mexico partnership files Form PTE, the income and information return for pass-through entities. The profit passes through to the partners, who report it on their own returns.

If any partner lives outside New Mexico, the partnership must withhold New Mexico tax from that partner's share of the net income and report it to the partner on Form RPD-41359.

The $50 franchise tax is charged to corporations, so a partnership does not owe it. A partnership set up as an LLC files the $20 report every three years.

S corporation

A New Mexico S corporation files Form CIT-1, the corporate income and franchise tax return, and pays the $50 franchise tax. New Mexico charges it for every year or part of a year to every corporation that does business in the state or simply holds its corporate charter there, even an inactive one.

If any shareholder lives outside New Mexico, the corporation must withhold New Mexico tax from that shareholder's share of the net income and report it on Form RPD-41359. It also files a biennial report with the Secretary of State, a separate filing to a separate agency.

C corporation

A C corporation files Form CIT-1 and pays a flat 5.9% of its New Mexico taxable income, for tax years beginning on or after January 1, 2025. Before that the rate was graduated, starting at 4.8% up to $500,000, and older guidance still prints that schedule.

A corporation selling into other states counts only its New Mexico share, measured by the average of three shares: property, payroll and sales, weighted equally. Measuring by sales alone is an election open only to qualifying manufacturers and to businesses headquartered in New Mexico.

It also pays the $50 franchise tax on the same return, due the 15th day of the fourth month after its year ends, so April 15 for a calendar year. It is owed even when no income tax is due. Corporations also file a biennial report with the Secretary of State.

Return
Form CIT-1, due April 15 for a calendar year
Corporate income tax
5.9% of New Mexico taxable income
Franchise tax
$50 a year, owed even by an inactive corporation
Multi-state profit
Average of the New Mexico shares of property, payroll and sales
Biennial report
Filed with the Secretary of State

Estimate your state tax

Pick your business type and enter this year's numbers to see the state business tax New Mexico charges. It assumes all your sales are in New Mexico.

An estimate for planning, not tax advice.

Sources

Last reviewed August 2026.

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