New Mexico uses a graduated-rate table. You can locate the current and historic personal income tax rates here.

The forms you need when filing a personal income tax return depend on multiple factors including adjustments to your income, sources of income, your residency in New Mexico, and the different exemptions, deductions, or credits you may claim.

You will need the financial documents sent to you from your income sources, for example W-2’s, 1099’s etc. to support your income and any withholding.

Depending on the different exemptions, deductions, or credit that you claim on your Form PIT-1, New Mexico Personal Income Tax Return additional documents, supporting schedules (PIT-CR, PIT-ADJ, PIT-B, and PIT-RC), or supporting forms from the Department as specified on the return and form instructions will need to be submitted with your return.

Please see the Form PIT-1, New Mexico Personal Income Tax Return Instructions for guidance.

You can locate the instructions on our website here. In the following folder path: Income Taxes/Income Taxes (Current Tax Year Forms)/Personal Income Tax (PIT)/Personal Income Tax Return Forms.

If a taxpayer dies before filing a return for a tax year, the taxpayer’s spouse or personal representative may need to file and sign a return for that taxpayer. A personal representative can be an executor, administrator, or anyone in charge of the deceased taxpayer’s property.

If the deceased taxpayer is not required to be entered on the federal or New Mexico return, do not enter the deceased taxpayer’s name. For example, a dependent that has no withholding.

If the return results in a refund and the refund check must be made payable to someone other than the taxpayer, the surviving spouse or to the estate of the taxpayer, this will need to be identified on the Form PIT-1, New Mexico Personal Income Tax Return and both of the following must be attached to the taxpayer’s refund claim:

• Form RPD-41083, Affidavit to Obtain Refund of New Mexico Tax Due a Deceased Taxpayer; and
• A copy of the death certificate or other proof of death.

No, a taxpayer filing a New Mexico Form PIT-1, New Mexico Personal Income Tax Return must use the same filing status for New Mexico and as submitted on the federal income tax return to the Internal Revenue Service (IRS).

Spouses using “married filing jointly” for the IRS must use the same filing status for New Mexico; those using “married filing separately” for the IRS must also use that filing status for New Mexico.

Please see the Form PIT-1, New Mexico Personal Income Tax Return Instructions for definitions of a resident, nonresident, first-year resident, part-year resident, and residency for military personnel.

You can locate the instructions in the folders at the bottom of this page or on our website here. In the following folder path: Income Taxes/Income Taxes (Current Tax Year Forms)/Personal Income Tax (PIT)/Personal Income Tax Return Forms.

Military personnel are subject to special residency rules.

A person serving in the United States Armed Forces does not become a resident of New Mexico solely because he or she is present in New Mexico on military orders even when physically present in this state for 185 days or more. A New Mexico resident serving in the military does not lose New Mexico residency solely because he or she is absent on military orders.

A taxpayer is considered a New Mexico resident if that taxpayer was present in New Mexico for 185 days or more based on the definition provided in Section 7-2-2 NSMA 1978.

A resident is taxed on certain types of income like any other resident, but you may be able to take credit for taxes paid to another state if you were required to pay tax on the same income in New Mexico and the other state. Refer to the instructions on the Form PIT-1, New Mexico Personal Income Tax Return.

If the income is not required to be allocated to New Mexico on the Form PIT-B, New Mexico Allocation and Apportionment of Income Schedule, you are able to use that form to allocate that income appropriately. Refer to the Form PIT-B, New Mexico Allocation and Apportionment of Income Schedule instructions for more information.

For non-residents with income from New Mexico sources, a Form PIT-B, New Mexico Allocation and Apportionment of Income Schedule is generally used.

Residents with income or losses outside New Mexico from rents and royalties, gains or losses from the sale or exchange of property, income or losses from pass-through entities, or other types of income not included in lines 1-6 and lines 8 and 9 of the Form PIT-B, New Mexico Allocation and Apportionment of Income Schedule must use the Form PIT-B, New Mexico Allocation and Apportionment of Income Schedule. The Form PIT-B, New Mexico Allocation and Apportionment of Income Schedule separates New Mexico income so tax liabilities can be distributed appropriately. If using a PIT-B, and you will be claiming the credit for taxes paid credit, include a complete copy of the other state’s tax return.

In certain circumstances, you may be eligible for a credit for taxes paid to another state. if you are required to allocate income to New Mexico because you are a resident but have been taxed by another state on that same income. See the Form PIT-1, New Mexico Personal Income Tax Return for more information on this credit.

Yes, but only for New Mexico state residents. If this credit is claimed, a complete copy of the other state’s return must be submitted with the Form PIT-1, New Mexico Personal Income Tax Return.

The credit is based on the tax the other state imposes on the portion of net income that is also required to be included in the New Mexico net income. This credit is outlined in Section 7-2-13 NMSA 1978.

The credit may not be more than:

• The New Mexico tax liability due on your PIT-1,
• The tax you paid to the other state.
• The amount of New Mexico income tax liability calculated on the part of income taxed in both states.

You can locate the instructions in the folders at the bottom of this page or on our website here. In the following folder path: Income Taxes/Income Taxes (Current Tax Year Forms)/Personal Income Tax (PIT)/Personal Income Tax Return Forms.

Wage Withholding Tax
New Mexico does not have a state form equivalent to the federal Internal Revenue Service Form W-4. For New Mexico withholding tax, you should use a federal W-4 and write across the top of that form: “For New Mexico Withholding Tax Only.” Retain a copy in your files for reference.

For more information, please see the FYI-104, New Mexico Withholding Tax

Contact your employer for a copy of your W-2. If you cannot locate your employer, you may be able to get the information from your last pay stub for the year. If neither is available, you would have to estimate your wages and withholding on a Substitute W-2 form available from the Internal Revenue Service (IRS). Please be advised that you will be held responsible for any information you enter on the Form PIT-1, New Mexico Personal Income Tax Return.

If New Mexico tax was withheld in error, you will need to submit a completed PIT-1 and PIT-B or an application for refund and a copy of the W-2 or income source document showing New Mexico Withholding.

If the withholding in error was done on your wages, salary, tips, or other income sources, and you had no income tax responsibility to New Mexico on that income in that tax year, obtain a letter from your employer or payor.  The letter must include both of the following:

• Explain the cause of the error.
• State that no New Mexico income tax was due on the income reported.

If New Mexico tax was withheld in error on your pension or annuity, and you had no income tax responsibility to New Mexico on that income in that tax year, provide the following:

• A copy of the state income tax return for the state in which you are domiciled (if there is a State tax);
• Other information showing your residency in another state such as a Driver’s License.

Please contact the retirement board and inform them of your current state of residence and have the New Mexico withholding stopped.

Provide these documents to the Personal Income Tax Correspondence Unit by mail, fax or email:

Mail:  PO Box 630, Santa Fe, NM  87504

Fax:  505-827-2526

Email:  TRD.TaxReturnHelp@tax.nm.gov

Any taxpayer who files a New Mexico Form PIT-1, New Mexico Personal Income Tax Return, including out-of-state residents with an income tax responsibility to New Mexico, may claim the deduction. You may claim qualified expenses for medical care for yourself, your spouse or your dependent. Qualified expenses require that the care is provided by a doctor licensed to practice in New Mexico and are expenses that weren’t itemized on the federal return.

See Section 152 of the Internal Revenue Code for the definition of “dependent.” Non-resident Form PIT-1, New Mexico Personal Income Tax Return filers take the deduction after the New Mexico percentage calculated on Form PIT-B, New Mexico Allocation and Apportionment of Income Schedule is applied to total unreimbursed medical expenses.

To take this deduction on the Form PIT-1, New Mexico Personal Income Tax Return. Check the Form PIT-1, New Mexico Personal Income Tax Return line instructions for changes in line numbers in any given year.

Yes. A refundable tax credit called the “Working Families Tax Credit (WFTC)” is located on the Form PIT-1, New Mexico Personal Income Tax Return.

For tax year 2022, the credit is 20% of the earned income credit (EIC). For tax year 2023, the credit is 25% of the earned income credit (EIC). Starting in the 2021 tax year, if you would have been able to claim the WFTC but you were missing an identification number, or you were between the age of 18-25 you are still able to claim this credit in New Mexico. For further information please see the Form PIT-1, New Mexico Personal Income Tax Return instructions.

There is also a “low-and middle-income exemption” that is based upon adjusted gross income located on the Form PIT-1, New Mexico Personal Income Tax Return. All taxpayers, including residents, part-year residents, first-year residents, and non-residents may claim this exemption in full. The maximum is $2,500 for each qualified exemption for income tax purposes.

The amount varies according to filing status and adjusted gross income. To claim the exemption, the Federal Adjusted Gross income of the taxpayers must be equal to or less than any of the following:

• $36,667 (if single)
• $27,500 (if married filing separately)
• • $55,000 (if married filing jointly, qualified widow(er), or head of household)

The “Low-Income Comprehensive Tax Rebate (LICTR)” is for New Mexico resident filers who fit the following qualifications. More information can be located on the Form PIT-RC, New Mexico Rebate and Credit Schedule and that forms instructions.

To qualify for this rebate, all of the following must be true:

• You have a modified gross income of $36,000 or less.
• You were a resident of New Mexico during the tax year.
• You were physically present in New Mexico for at least six months in the tax year.
• You are not eligible to be claimed as a dependent of another taxpayer for the tax year.
• You were not an inmate of a public institution for more than six months in the tax year.

“Modified gross income” is a calculation unique to New Mexico. It means — for the entire household — all income and all compensation from other sources regardless of whether the income is taxable by the U.S. Government or the state of New Mexico.

There is also a “low-and middle-income exemption” that is based upon adjusted gross income located on the Form PIT-1, New Mexico Personal Income Tax Return. All taxpayers, including residents, part-year residents, first-year residents, and non-residents may claim this exemption in full. The maximum is $2,500 for each qualified exemption for income tax purposes.

The amount varies according to filing status and adjusted gross income. To claim the exemption, the Federal Adjusted Gross income of the taxpayers must be equal to or less than any of the following:

• $36,667 (if single)
• $27,500 (if married filing separately)
• $55,000 (if married filing jointly, qualified widow(er), or head of household)

Note: Starting for the taxable year 2023, the statute under Section 7-2-14 NMSA 1978 allows for the amount of the rebate to be adjusted to account for inflation.

Yes. Depending on income level, taxpayers 65 years of age or older may be eligible for a exemption from taxable income of up to $8,000 each. If you are a centennial, 100 years or older, there is also a special exemption for those taxpayers. There are also other deductions in this area of the return that may apply to certain individuals such as railroad retirement, armed forces retirement pay, or social security income if your adjusted gross income falls below the income threshold for your filing status as specified in the Form PIT-1, New Mexico Personal Income Tax Return Instructions.

The state also provides an income tax exemption of up to $3,000 to those 65 and older for medical expenses for either that person or his or her spouse or dependents. The expenses must exceed $28,000 and must not be reimbursed or compensated by other means like health insurance or Medicaid. For more information, see the Form PIT-ADJ, New Mexico Schedule of Additions, Deductions, and Exemptions.

The following credits and rebates are located on the Form PIT-RC, New Mexico Rebate and Credit Schedule.

Low-income taxpayers may qualify for the “Property Tax Rebate for Persons 65 of older” even if they rent their primary residence. There is an additional credit for residents or property owners in specific counties.

“Refundable Medical Care Credit for Persons 65 or Older” is allowed if you or your spouse are 65 years of age or older, and you paid unreimbursed and uncompensated medical care expenses of $28,000 or more during tax year, you may claim a tax credit of $2,800. The medical care expenses can be for the care of any combination of you, your spouse, or dependents. The tax credit is allowed for non-residents with income tax responsibility to New Mexico.

Yes. Active-duty income earned by active-duty members of the armed forces is exempt from New Mexico’s personal income tax. File a Form PIT-1, New Mexico Personal Income Tax Return resident tax return and use a Form PIT-ADJ, New Mexico Schedule of Additions, Deductions, and Exemptions to deduct any military active duty pay.

In order to protect taxpayers from the risks of identity and/or income theft, it is necessary to verify your identity and/or income before we can proceed with processing your return and issuing any refunds or applying any overpayments.

To complete the verification process, kindly refer to the instructions provided in the letter. Should you require assistance, please feel free to contact the call center or visit a tax field office.

If you receive any of the following letters:

• • PIN Verification Letter
  • Quiz Access Letter
  • Document Request Access Letter

You can submit the documentation using the Taxpayer Access Point (TAP) and going to the “Personal Income” tile and selecting “Verify My Identity”. You will then need to enter the one-time password provided to you in your letter:

If you receive the following letter:

• • Request for Additional Information Letter

You can submit the documentation using the Taxpayer Access Point (TAP) and going to the “Submissions” tile select “Submit a Document”. You will then select “Individual” you will then have to submit the Letter ID from the top right corner of your letter and attach the documentation requested in the letter.