The taxation and revenue tax rates in New Mexico can be quite complicated due to the variety of taxes imposed at different levels of government. However, I am happy to provide a detailed breakdown of some of the most common tax rates in New Mexico.
Firstly, at the state level, New Mexico imposes a personal income tax on all residents' taxable income. The tax rates range from 1.7% to 4.9%, depending on the amount of taxable income earned. For example, if your taxable income is less than $5,500, you will pay a tax rate of 1.7%. If your taxable income is over $16,000, you will pay a tax rate of 4.9%. Additionally, the state sales tax rate in New Mexico is 5.125%, but individual localities may add on additional sales tax rates, which vary by location.
At the county level, residents typically pay property taxes to fund local government services. The median property tax rate in New Mexico is around 0.72% of a property's assessed value, but this can vary significantly depending on the county and the assessed value of your property.
For businesses operating in New Mexico, the corporate income tax rate is a flat rate of 4.9%. Additionally, there is a gross receipts tax imposed on businesses that varies by industry and ranges from 0.125% to 8.6875%.
Finally, it's worth noting that New Mexico also imposes various excise taxes on items such as tobacco products, alcohol, and gasoline. These taxes are generally included in the purchase price of these goods, but they can add up over time and impact your overall budget.
Overall, the taxation and revenue tax rates in New Mexico vary widely depending on your personal or business circumstances. It's always a good idea to consult with a tax professional to ensure that you're meeting all of your tax obligations and minimizing your tax burden as much as possible.