Income tax withholding
| Imposes wage income tax | Yes |
|---|---|
| Rate structure | Graduated, top marginal rate 5.9% |
| Withholding certificate | Federal Form W-4 Employee's Withholding Certificate (New Mexico has no separate state certificate) |
| Accepts federal Form W-4 | Yes |
| Convenience-of-the-employer rule | No |
| Nonresident withholding threshold | 15 days New Mexico provides a de minimis exemption for nonresident employees temporarily present in the state. Sources differ slightly on the count: New Mexico's statute is commonly cited as 15 days or fewer, while COST's multistate chart states 'more than 16 days in a calendar year.' Not confirmed against a current NM TRD publication -- verify with FYI-104 (New Mexico Withholding Tax) before relying on the exact count. |
| Local income taxes | No No local personal income or wage taxes. New Mexico levies local gross receipts tax increments, which are not wage taxes. |
Reciprocity
States that exempt New Mexico residents
A New Mexico resident working in these states files that state's certificate and is taxed only by New Mexico.
Unemployment insurance and paid leave
| Taxable wage base 2026 | $34,800 2025 base was $33,200. |
|---|---|
| New employer rate | varies by industry New employers pay the greater of the industry average rate or 1.00%, so there is no single statewide new-employer rate. |
| Experience rate range | 0.33% – 5.4% |
| Experience-rating method | benefit ratio |
| Employee UI contribution | No |
| Paid family / medical leave | No |
Employer registration
- Tax agency
- New Mexico Taxation and Revenue Department
- UI agency
- New Mexico Department of Workforce Solutions
Sources
tax.newmexico.gov · cost.org · taxfoundation.org · oui.doleta.gov · oui.doleta.gov · oui.doleta.gov