New Mexico Tax Policy & Rates 2026
Income tax, sales tax, property tax, and overall tax burden for New Mexico in 2026, with political context.
No
No Income Tax
5.9% (top)
Income Tax Rate
#36
Tax Burden Rank (1=highest)
#7
Property Tax Rank (1=highest)
Tax Policy Overview
New Mexico has low property taxes and has cut income taxes recently. Oil and gas revenue funds significant state programs, reducing tax pressure on residents. The overall tax burden is relatively low.
Key Tax Rates
| Tax Type | Rate / Status |
|---|---|
| Income Tax | 5.9% (top) |
| No Income Tax | No |
| Sales Tax | 5.0% (+local) |
| No Sales Tax | No |
| Corporate Tax | 5.9% |
| Property Tax Rank | #7 nationally (1=highest) |
| Overall Tax Burden Rank | #36 nationally (1=highest) |
Political Context
New Mexico Democrats have used energy windfall revenues to both cut taxes and fund new programs. Income tax cuts have gone to all brackets. The dependence on oil and gas revenue is a long-term vulnerability as energy transition progresses.