New Mexico State Income Tax Withholding Information

State Abbreviation:

NM

State Tax Withholding State Code:

35

Acceptable Exemption Form:

None

Basis for Withholding:

Federal Exemptions

Acceptable Exemption Data:

None

TSP Deferred:

Yes

Special Coding:

None

Additional Information:

A State tax certificate is not required since Federal
exemptions are used in the computation of the State
formula.

Additional Resources:

TAXES 15-16, New Mexico State Income Tax Withholding

Withholding Formula (Effective Pay Period 06, 2015)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account - health care and dependent care deductions) from the amount computed in step 1.
  3. Add the taxable biweekly fringe benefits (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
  5. Determine the exemption allowance by applying the following guideline and subtract this amount from the gross annual wages to compute the taxable income.

    Exemption Allowance = $4,000 x Number of Exemptions

  6. Apply the taxable income computed in step 5 to the following table to determine the annual New Mexico tax withholding.

    Tax Withholding Table

    Single or Head of Household

    If the Amount of
    Taxable Income Is:

    The Amount of New Mexico
    Tax Withholding Should Be:

    Over:

    But Not Over:

     

    Of Excess Over:

    $0

    $2,300

     

    $0.00

    plus

    0.0%

    $0

    2,300

    7,800

     

    0.00

    plus

    1.7%

    2,300

    7,800

    13,300

     

    93.50

    plus

    3.2%

    7,800

    13,300

    18,300

     

    269.50

    plus

    4.7%

    13,300

    18,300

    28,300

     

    504.50

    plus

    4.9%

    18,300

    28,300

    44,300

     

    994.50

    plus

    4.9%

    28,300

    44,300

    67,300

     

    1,778.50

    plus

    4.9%

    44,300

    67,300

    and over

     

    2,905.50

    plus

    4.9%

    67,300

    Tax Withholding Table

    Married

    If the Amount of
    Taxable Income Is:

    The Amount of New Mexico
    Tax Withholding Should Be:

    Over:

    But Not Over:

     

    Of Excess Over:

    $0

    $8,600

     

    $0.00

    plus

    0.0%

    $0

    8,600

    16,600

     

    0.00

    plus

    1.7%

    8,600

    16,600

    24,600

     

    136.00

    plus

    3.2%

    16,600

    24,600

    32,600

     

    392.00

    plus

    4.7%

    24,600

    32,600

    48,600

     

    768.00

    plus

    4.9%

    32,600

    48,600

    72,600

     

    1,552.00

    plus

    4.9%

    48,600

    72,600

    108,600

     

    2,728.00

    plus

    4.9%

    72,600

    108,600

    and over

     

    4,492.00

    plus

    4.9%

    108,600
  7. Divide the annual New Mexico tax withholding by 26 to obtain the biweekly New Mexico tax withholding.