2021 New Mexico Income Tax Brackets: What You Need to Know

The 2023 tax year has brought some changes to the income tax brackets for most ordinary income in New Mexico. With seven tax brackets ranging from 10% to 37%, it's essential to understand how these changes will affect your taxes. In this article, we'll break down the 2021 individual income tax brackets and rates, as well as provide an overview of the state's income tax system.

The 2021 Individual Income Tax Brackets

For the 2023 tax year, New Mexico has seven tax brackets, with rates ranging from 10% to 37%. Here are the brackets and corresponding rates:

* $1,166,200.01 to $3,498,600.00: 34.00%

* $1,299,380.05 to $3,898,140.12: 34.00%

History of New Mexico Income Tax Brackets

New Mexico's income tax brackets have undergone changes since 2010. The latest available tax rates are for 2023, and the state has seen changes in its tax brackets every few years. For instance, the income tax brackets were last changed two years prior to 2011, with the tax rates being previously changed in 2008.

* New Mexico collects a state income tax at a maximum marginal tax rate of 4.90% as of 2023.

* The state has four tax brackets, with a maximum marginal income tax.

* There are seven tax brackets for most ordinary income for the 2023 tax year: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

* You can start filing your tax return now, as Tax Day is April 17th, with 30 days left until taxes are due.

Stay Informed

To stay up-to-date on the latest New Mexico income tax brackets and rates, visit the official website or consult a tax professional. Remember to file your tax return by April 17th to avoid any potential penalties or fines.

2021 new mexico income tax brackets