TAXES 22-16, New Mexico State Income Tax Withholding

Published: March 30, 2022
Effective: Pay Period 06, 2022

Summary

The Single, Married, and Head of Household tax withholding formulas for the State of New Mexico have changed.

No action on the part of the employee or the personnel office is necessary.

Tax Formula

State Abbreviation:

NM

State Tax Withholding State Code:

35

Acceptable Exemption Form:

W-4 (see the Additional Information section)

Basis for Withholding:

Federal Filing Status

Acceptable Exemption Data:

S/M, prior to 2020 Federal Form W-4

MS/MJ/HH, for 2020 or later Federal Form W-4

TSP Deferred:

Yes

Special Coding:

The S and MS marital statuses will be treated as Single.

The M and MJ marital statuses will be treated as Married.

Additional Information:

A State tax certificate is not required since the Federal Marital Status is used in the computation of the State formula. Employees who have not previously submitted a 2020 or later Federal Form W-4, but have submitted a prior to 2020 Federal Form W-4, will default to the prior to 2020 Federal Form W-4 submission. Employees who have not previously submitted a prior to 2020 Federal Form W-4, and have not submitted a 2020 or later Federal Form W-4, will default to Single.

Withholding Formula (Effective Pay Period 06, 2022)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Employees 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 (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
  5. If the employee has submitted a 2020 or later Federal Form W-4, then subtract the annual deductions claimed in step 4b of the Federal Form W-4.

    Note: If the result is less than zero, the Adjusted Annual Wage Amount is zero.

  6. Apply the taxable income computed in step 4, or if applicable, in step 5, to the following tables to determine the annual New Mexico tax withholding:

    Single Tax Withholding Table

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $6,475

    $0.00

    Over $6,475 but not over $11,975

    $0.00 plus 1.7% of excess over $6,475

    Over $11,975 but not over $17,475

    $93.50 plus 3.2% of excess over $11,975

    Over $17,475 but not over $22,475

    $269.50 plus 4.7% of excess over $17,475

    Over $22,475 but not over $32,475

    $504.50 plus 4.9% of excess over $22,475

    Over $32,475 but not over $48,475

    $994.50 plus 4.9% of excess over $32,475

    Over $48,475 but not over $71,475

    $1,778.50 plus 4.9% of excess over $48,475

    Over $71,475 but not over $131,475

    $2,905.50 plus 4.9% of excess over $71,475

    Over $131,475 but not over $216,475

    $5,845.50 plus 4.9% of excess over $131,475

    Over $216,475

    $10,010.50 plus 5.9% of excess over $216,475

     

    Married Tax Withholding Table

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $12,950

    $0.00

    Over $12,950 but not over $20,950

    $0.00 plus 1.7% of excess over $12,950

    Over $20,950 but not over $28,950

    $136.00 plus 3.2% of excess over $20,950

    Over $28,950 but not over $36,950

    $392.00 plus 4.7% of excess over $28,950

    Over $36,950 but not over $52,950

    $768.00 plus 4.9% of excess over $36,950

    Over $52,950 but not over $76,950

    $1,552.00 plus 4.9% of excess over $52,950

    Over $76,950 but not over $112,950

    $2,728.00 plus 4.9% of excess over $76,950

    Over $112,950 but not over $212,950

    $4,492.00 plus 4.9% of excess over $112,950

    Over $212,950 but not over $327,950

    $9,392.00 plus 4.9% of excess over $212,950

    Over $327,950

    $15,027.00 plus 5.9% of excess over $327,950

    Head of Household Tax Withholding Table

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $9,700

    $0.00

    Over $9,700 but not over $17,700

    $0.00 plus 1.7% of excess over $9,700

    Over $17,700 but not over $25,700

    $136.00 plus 3.2% of excess over $17,700

    Over $25,700 but not over $33,700

    $392.00 plus 4.7% of excess over $25,700

    Over $33,700 but not over $49,700

    $768.00 plus 4.9% of excess over $33,700

    Over $49,700 but not over $73,700

    $1,552.00 plus 4.9% of excess over $49,700

    Over $73,700 but not over $109,700

    $2,728.00 plus 4.9% of excess over $73,700

    Over $109,700 but not over $209,700

    $4,492.00 plus 4.9% of excess over $109,700

    Over $209,700 but not over $324,700

    $9,392.00 plus 4.9% of excess over $209,700

    Over $324,700

    $15,027.00 plus 5.9% of excess over $324,700

  7. Divide the annual New Mexico tax withholding calculated in step 6 by the number of pay dates in the tax year to obtain the biweekly New Mexico tax withholding.
  8. Add the additional amount or percentage elected by the employee to the pay period tax calculated in step 7 to determine the amount of tax to be withheld for the pay period.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) Home page. Select the Publications tab and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.

Previous Tax Bulletin

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.