New Mexico Retirement Income Tax Calculator
New Mexico taxes a portion of Social Security benefits.
New Mexico retirement income tax estimator
New Mexico taxes a portion of Social Security benefits.
New Mexico tax —
After state tax —
Effective state rate —
New Mexico at a glance
| Figure | New Mexico | Source |
|---|---|---|
| Taxes Social Security? | Yes (partially) | [2] |
| Top marginal rate | 5.90% | [2] |
| Taxes pension income? | Generally yes | [2] |
| Cost of living index | 89.9 | [1] |
New Mexico highlighted. Same data as the table below, shown as a distribution so the comparison is visible at a glance.
Highlighted: New Mexico, ranked 15 of 50. Median 4.55%.
New Mexico state tax by retirement income mix
Annual New Mexico tax on each combination of Social Security and other retirement income.
| Social Security | No other income | +$10,000 other | +$20,000 other | +$30,000 other | +$45,000 other | +$60,000 other | +$80,000 other | +$110,000 other |
|---|---|---|---|---|---|---|---|---|
| $9,000 | $451 | $1,041 | $1,631 | $2,221 | $3,106 | $3,991 | $5,171 | $6,941 |
| $12,000 | $602 | $1,192 | $1,782 | $2,372 | $3,257 | $4,142 | $5,322 | $7,092 |
| $15,000 | $752 | $1,342 | $1,932 | $2,522 | $3,407 | $4,292 | $5,472 | $7,242 |
| $18,000 | $903 | $1,493 | $2,083 | $2,673 | $3,558 | $4,443 | $5,623 | $7,393 |
| $21,000 | $1,053 | $1,643 | $2,233 | $2,823 | $3,708 | $4,593 | $5,773 | $7,543 |
| $24,000 | $1,204 | $1,794 | $2,384 | $2,974 | $3,859 | $4,744 | $5,924 | $7,694 |
| $27,000 | $1,354 | $1,944 | $2,534 | $3,124 | $4,009 | $4,894 | $6,074 | $7,844 |
| $30,000 | $1,505 | $2,095 | $2,685 | $3,275 | $4,160 | $5,045 | $6,225 | $7,995 |
| $33,000 | $1,655 | $2,245 | $2,835 | $3,425 | $4,310 | $5,195 | $6,375 | $8,145 |
| $36,000 | $1,805 | $2,395 | $2,985 | $3,575 | $4,460 | $5,345 | $6,525 | $8,295 |
| $39,000 | $1,956 | $2,546 | $3,136 | $3,726 | $4,611 | $5,496 | $6,676 | $8,446 |
| $42,000 | $2,106 | $2,696 | $3,286 | $3,876 | $4,761 | $5,646 | $6,826 | $8,596 |
| $45,000 | $2,257 | $2,847 | $3,437 | $4,027 | $4,912 | $5,797 | $6,977 | $8,747 |
| $48,000 | $2,407 | $2,997 | $3,587 | $4,177 | $5,062 | $5,947 | $7,127 | $8,897 |
| $54,000 | $2,708 | $3,298 | $3,888 | $4,478 | $5,363 | $6,248 | $7,428 | $9,198 |
Worked figures for New Mexico
New Mexico values:
| Profile | Gross | State Tax | Net | Effective |
|---|---|---|---|---|
| $18,000 SS + $0 pension + $5,000 401k | $23,000 | $1,198 | $21,802 | 5.21% |
| $24,000 SS + $0 pension + $10,000 401k | $34,000 | $1,794 | $32,206 | 5.28% |
| $24,000 SS + $12,000 pension + $10,000 401k | $46,000 | $2,502 | $43,498 | 5.44% |
| $30,000 SS + $20,000 pension + $15,000 401k | $65,000 | $3,570 | $61,431 | 5.49% |
| $30,000 SS + $30,000 pension + $20,000 401k | $80,000 | $4,455 | $75,546 | 5.57% |
| $36,000 SS + $40,000 pension + $25,000 401k | $101,000 | $5,640 | $95,360 | 5.58% |
| $42,000 SS + $50,000 pension + $40,000 401k | $132,000 | $7,416 | $124,584 | 5.62% |
| $48,000 SS + $60,000 pension + $50,000 401k | $158,000 | $8,897 | $149,103 | 5.63% |
How New Mexico compares nationally
On top marginal income tax rate, New Mexico ranks #15 of 50 at 5.90% — 30% above the median of 4.55%. The national range runs from 0.00% (Wyoming) to 13.30% (California).
| Rank | State | Top marginal income tax rate |
|---|---|---|
| #13 | Maryland | 6.50% |
| #14 | Rhode Island | 5.99% |
| #15 | New Mexico | 5.90% |
| #16 | Virginia | 5.75% |
| #17 | Montana | 5.65% |
Taxes Social Security benefitss, ranked
Same rule structure as New Mexico:
| State | Top marginal income tax rate | vs New Mexico |
|---|---|---|
| Minnesota | 9.85% | +66.9% |
| Rhode Island | 5.99% | +1.5% |
| New Mexico | 5.90% | — |
| Montana | 5.65% | -4.2% |
| West Virginia | 4.58% | -22.4% |
| Colorado | 4.40% | -25.4% |
New Mexico questions, answered with New Mexico numbers
Does New Mexico tax Social Security?▾
Yes, New Mexico taxes a portion of Social Security benefits.
What would a $65,000 retirement income cost in New Mexico tax?▾
On $30,000 Social Security, $20,000 pension and $15,000 of 401(k) withdrawals, New Mexico would take about $3,570 — an effective state rate of 5.49%, leaving $61,431.
Is New Mexico a good state to retire in on taxes alone?▾
New Mexico's top marginal rate is 5.90% and its cost of living index is 89.9. Tax is only one input — housing at a $321,000 median matters at least as much.
Other taxes social security benefitss
Last reviewed 2026-08-27. New Mexico figures only — verify with the relevant New Mexico agency before acting. How this is calculated.