Taxes and Licenses

Taxes

Taxes in New Mexico are derived from three main sources:
New Mexico Personal Income Taxes
Property Taxes
Gross Receipts Taxes (Sales Taxes)

Personal Income Taxes

New Mexico imposes personal income taxes on the net income of every resident. New Mexico’s personal income tax “piggy-backs” on your federal return and uses your federal adjusted gross income as it’s base.

New Mexico uses the same dollar amounts as the federal government for personal exemptions, standard deductions and itemized deductions.

The tax rate is determined on a seven bracket, graduated rate table which ranges from 1.7% to 8.2% of your federal taxable income.

Your resident status is determined by the location of your “domicile”, or the place where your permanent home is located. A resident is a person domiciled in New Mexico at the end of the tax year, whether the person was physically present or not.

Retiree Income Tax Benefits

Depending on income level, taxpayers 65 years old or more may be eligible for a deduction from taxable income of up to $8,000 each. There is also a low income tax rebate of not more than $250 for taxpayers filing jointly or $125 for taxpayers filing separately or as a single taxpayer. Please go to www.state.nm.us – Frequently Asked Questions or phone 505-827-0870 for specifics on this rebate.

Property Taxes

Property taxes are based on the assessed value of the property. Since the assessed values are often not the market valuation of the property, it is sometimes difficult to calculate taxes completely accurately. Property is usually re-assessed every 2-3 years.

You may use the following formula to obtain a general figure for property taxes on any given property. Example:

Property Full Value
 
$120,000
 
Taxable Value (1/3 of full value)
 
$40,000
 
Head of Household Exemption (normally $2,000)
 
-$ 2,000
 
Net Taxable Value
 
$38,000

 

Net Taxable Value
 
$38,000
 
Multiply by Mil Levy/Tax Rate
 
x38.880 (Bernalillo County rate)
 
Divide by $1,000
 
1,000
 
Full Year Property Taxes
 
$1.477.44

 

The mil levies vary based on the municipality and county where a home is located.
Mil levies below are subject to change without notice. Mil levies change every November.

City of Albuquerque: 47.488
Rio Rancho: 40.354
Belen: 32.528
Bernalillo County: 35.968
Los Lunas: 38.074
Moriarty: 26.551

When you have located a home to purchase, your ERA Agent will assist you in determining the current tax amount.

Beginning in 2001, the tax valuation on a property that did not change hands in the prior year may not increase by more than 3% annually (excluding any increases due to physical changes to the property). This covers rental property as well as owner occupied residences.

Property tax break for some older New Mexicans

Beginning with the 2001 property tax year, if a home owner is 65 years or older with a modified gross income of $18,000 or less, the tax valuation of their home may not climb higher than the 2001 valuation or the valuation in the year that the homeowner turns 65 years old.

Veteran and Head of Household Property Tax Exemption

There is a $2000 deduction for veterans and a $2000 deduction for head of households.

County Assessors Offices

Bernalillo CountyWebsiteAlbuquerque, Corrales, Tijeras
505-222-3700
Sandoval CountyWebsiteRio Rancho, Bernalillo
505-867-7562
Santa Fe CountyWebsiteEdgewood
505-986-6300
Valencia CountyWebsiteBosque Farms, Los Lunas, Belen
505-866-2065

Personal Property Taxes

There are no personal property taxes in New Mexico.

Gross Receipts Tax (Sales Tax)

Gross receipts taxes are subject to change every January and July.

New Mexico will no longer charges gross receipts taxes on most food purchases. However, there are some exceptions to this program.

  • Foods must qualify under the federal food stamp program—Alcoholic beverages and tobacco remain taxable
  • Not every retailer qualifies to sell food tax free
    Fast foods, take-out from restaurants, hot food from grocery stores remain taxable
  • The gross receipts tax rates are:
Albuquerque7.3125%
Corrales7.5625%
Rio Rancho7.4375%
Bernalillo7.0625%
Tijeras7.6250%
EdgewoodVaries by County
Bosque Farms8.1875%
Los Lunas8.3125%
Belen8.3125%

For more information about taxes in New Mexico, you may call:

NM Taxation and Revenue
Main Switchboard: 505-827-0700
Motor Vehicle Division: 505-827-2296
Property Tax Division: 505-827-0870
www.state.nm.us/tax

Areas We Cover