New Mexico

Tax Rate Range: - Low -1.7%; High - 5.3% (2006 and 2007).
Income Brackets: * Lowest - $5,500; Highest - $16,000
Number of Brackets: 4
Personal Exemptions: ** Single - $3,200; Married - $6,400;
Dependents - $3,200
Additional Exemptions: Taxpayer or spouse 65 or older - up to $8,000
Standard Deduction: Single - $4,750; Married filing jointly - $9,500
Medical/Dental Deduction: Credit of 3% of unreimbursed prescription drug expenses to maximum of $150 per individual or $300 per return
Federal Income Tax Deduction: None
Retirement Income Taxes: Taxpayers 65 and older may exempt up to $8,000 (single), $16,000 (joint) from any income source if their income is under $28,500 (individual filers) or $51,000 (married filing jointly).
Retired Military Pay: See above.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.

State Tax Software

VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.
* The tax brackets reported are for a single individual. For married individuals filing jointly, the rate ranges from 1.7% under $8,000 to 5.3% over $24,000. Married households filing separately pay the tax imposed on half the income.
** New Mexico allows personal exemptions or standard deductions as provided in the Internal Revenue Code.

Sales Taxes

Gross Receipts Tax: 5% (prescription drugs exempt); county and city taxes may add another 2.1875%. Certain food and medical expenses are exempt.
Gasoline Tax: 18.0 cents/gallon
Diesel Fuel Tax: 19.0 cents/gallon
Cigarette Tax: 91 cents/pack of 20

All property, whether real or personal, is subject to state and local property taxes. Rates vary substantially and depend on property type and location. The statewide weighted average rates, i.e., total obligations/total net taxable value, are about $26.47 for residential property. Assessors usually determine market value by the sales-comparison approach which matches a property's value to that of similar properties. The valuation of a residence that did not change hands in the prior year may not increase by more than 3% annually. One-third of the property's market value is its taxable value. The taxable value may be further reduced by exemptions of $2,000 each of heads of house holds and $4,000 for veterans.
There is a property tax rebate for residents age 65 and older. Their modified gross income cannot exceed $18,000 for the tax year and they cannot have been claimed as a dependent on another taxpayer's return. Homeowners 65 and older who earn $18,000 ($25,000 in Sandoval County) or less are eligible for a credit of up to $250 (married filing jointly) or $125 for single taxpayers. Call 505-827-0870 for details.
To access the property tax page, click here. For more details on property taxes, click here.

There is no inheritance tax but an inheritance may be reflected in a taxpayer's modified gross income and taxed that way. The estate tax is related to federal estate tax collection.
For further information, visit the New Mexico Taxation and Revenue Department site. Information for new residents, click here.