TAX & LICENSE / STATE  TAX SYSTEM

State Income Tax
New Mexico imposes a tax on the net income of every resident based on net income from employment, unearned income, gambling, pensions, annuities, and income from real or personal property in this state or from businesses located in this state. Non-residents are taxed on the net income from property, employment, or business in New Mexico.

New Mexico’s personal income tax “piggybacks” on the federal return and uses the federal adjusted gross income figure as its base. Net income usually equals federal taxable income, although some special deductions are available. New Mexico uses the same dollar amounts as the federal government for personal exemptions, standard deductions, and itemized deductions. The state tax rate is based on a graduated-rate table. For more information or answers to your specific questions, contact:

New Mexico Tax & Revenue
1100 South Street
Santa Fe
505-827-0700

Sales Tax
Residents of Mexico pay a state sales tax of 5 percent, although other taxing jurisdictions such as municipalities and school districts add varying rates. At the beginning of 2005, the state eliminated sales tax on most food purchases (including most staple grocery food items and cold prepared foods packaged for home consumption) as well as many medical services. For questions on sales tax, contact:

New Mexico Taxation & Revenue
Gross Receipts Sales Tax
505-827-0832

Estate Tax
New Mexico imposes an estate tax on the net estate in an amount equal to a proportionate share of the federal credit for state estate taxes. The net estate located in New Mexico of a nonresident is also taxable as a fraction of the federal credit. New Mexico does not impose an inheritance tax on heirs but an inheritance may be reflected in a taxpayer’s modified gross income as defined by New Mexico. If so, New Mexico personal income tax laws would apply.

Property Tax
New Mexico assesses residences at market value, determining this value by the sales-comparison approach that matches a property’s value to that of similar properties. One-third of that amount is the taxable value, but taxable value may be further reduced by exemptions of $2,000 each for veterans and heads of household. The valuation of a residence that did not change hands in the prior year may not increase by more than 3 percent annually (excluding any increase due to physical changes to the property). This covers rental properties as well as owner-occupied residences. Tax rates vary substantially and depend on property type and location. For residential property, the tax rate ranges from $8 to $48 per $1,000 of net taxable value after exemptions. The state Property Tax Division oversees the county assessors. For specific information about your property, contact your county assessor or treasurer.

Property Tax Division
New Mexico Taxation & Revenue
505-476-3092
Appraisal Bureau
505-827-0885
www.state.nm.us/tax

County Assessors

Los Alamos County
2300 Trinity Drive
Los Alamos
505-662-8030
www.losalamosnm.us

San Miguel County
599 West National Avenue
Las Vegas
505-454-4980
www.smcounty.net

Sandoval County
711 Camino Del Pueblo
Bernalillo
505-867-7561
800-972-6368
www.sandovalcounty.com

Santa Fe County
102 Grant Avenue
Santa Fe
505-986-6300
www.co.santa-fe.nm.us/assessor

Taos County
105 Albright Street
Taos
505-737-6360
www.taoscounty.org

County Treasurers

Los Alamos County
2300 Trinity Drive
Los Alamos
505-662-8075
www.losalamosnm.us

San Miguel County
500 West National Avenue
Las Vegas
505-425-9377
www.smcounty.net

Sandoval County
711 Camino Del Pueblo
Bernalillo
505-867-7581
800-332-8022
www.sandovalcounty.com

Santa Fe County
102 Grant Avenue
Santa Fe
505-986-6245
www.santafecounty.org

Taos County
105 Albright Street
Taos
505-737-6341
www.taoscounty.org