New Mexico State Income Tax Overview

New Mexico is one of the many states that imposes a state income tax on its residents and those who earn income from a source based in New Mexico.  The New Mexico Taxation and Revenue Department oversees the collection of state income tax and tax returns, which requires filing separate from the federal income tax return filed with the Internal Revenue Service (IRS).

Frequently asked questions concerns who has to filing, filing dates, and tax rates follow.  If you need additional information about federal income tax, visit our “Tax Relief” page.

Who is required to file a state income tax return in New Mexico?

New Mexico state income tax law requires that everyone who has income from a source based in New Mexico and who is required to file a federal income tax return must also file a New Mexico state income tax return.

This requirement applies to both residents and non-residents, as well as members of the military whose residence is still based in New Mexico and members of an Indian tribe or reservation who live or work on land outside of the reservation.

You must also file a New Mexico state income tax return if tax was withheld from your paycheck and you want to obtain a refund.

What is the tax rate for New Mexico state income tax?

New Mexico uses a graduated tax rate with seven tiers ranging from 1.7% to 4.9%.

How do I obtain an extension of time to complete and file my New Mexico state income tax?

New Mexico state income tax is normally due on April 15 of each year.  When April 15 falls on a holiday or weekend, tax returns are due on the next business day.  However, if you file and pay your state income tax return online, the due date is extended to April 30.

By completing form RPD-41096, you can request an extension of time to file your state income tax return.  This form must be submitted by April 15 in order for it to be accepted.  Failure to obtain an approved extension may make you subject to penalties and interest on any unpaid tax liability.

New Mexico generally limits extensions of time to file to 60 days, so long as you demonstrate a good cause for the extension.  An inability to pay the tax you owe is not considered sufficient reason for an extension.

Even if New Mexico accepts your extensions, they will charge you interest on any unpaid tax liability.  In addition, remember that an approved extension only provides you most time to file your state income tax return.  There are no extensions on the time to pay any tax liability due, which means you must still pay an estimate of any tax due by April 15.

How can I get help in completing my New Mexico state income tax return?

If you need help completing your state or federal income tax return, you can call the number at the top of this page to speak with a tax attorney.  Tax attorneys are available who specialize in New Mexico state income tax law and can help answers your questions or complete your tax returns.

by Mark Johnston

Mark has been a contributor to legal web sites related to bankruptcy, tax, and criminal law since 2011. He has an Accounting degree from Texas A&M University.