List Of New Mexico State Income Tax 2023

New Mexico property taxes on the rise Errors of Enchantment from errorsofenchantment.com

New Mexico State Income Tax: What You Need to Know in 2023

Introduction

If you are a resident of New Mexico or you receive income from New Mexico sources, you may need to pay state income tax. In this article, we will discuss everything you need to know about the New Mexico state income tax in 2023.

How Much is the New Mexico State Income Tax?

The New Mexico state income tax is a progressive tax system with rates ranging from 1.7% to 4.9%. The tax rate you pay depends on your taxable income. For example, if you earn $10,000 or less, you will pay a tax rate of 1.7%. If you earn between $10,001 and $16,000, you will pay a tax rate of 3.2%.

Who Needs to File a New Mexico State Income Tax Return?

You must file a New Mexico state income tax return if you are a resident of New Mexico and your gross income is greater than the minimum filing requirement. The minimum filing requirement for single taxpayers under 65 years old is $5,500. For married taxpayers filing jointly, the minimum filing requirement is $11,000.

What Income is Taxable in New Mexico?

Almost all income you receive is taxable in New Mexico. This includes wages, salaries, tips, interest, dividends, and capital gains. However, some income is exempt from New Mexico state income tax, such as Social Security benefits and certain retirement income.

How to File Your New Mexico State Income Tax Return?

You can file your New Mexico state income tax return online or by mail. If you file online, you can use the New Mexico Taxpayer Access Point (TAP) system. If you file by mail, you can download the forms from the New Mexico Taxation and Revenue Department website.

When is the New Mexico State Income Tax Return Due?

The due date for the New Mexico state income tax return is April 15th. However, if April 15th falls on a weekend or holiday, the due date is the next business day.

What Happens if You Don't File Your New Mexico State Income Tax Return?

If you don't file your New Mexico state income tax return on time, you may face penalties and interest charges. The penalty for late filing is 5% of the tax due per month, up to a maximum of 25%. Interest is charged on the unpaid tax at a rate of 1% per month.

Can You Get a New Mexico State Income Tax Refund?

If you overpaid your New Mexico state income tax, you may be eligible for a refund. You can check the status of your refund online using the New Mexico Taxpayer Access Point (TAP) system.

What Deductions and Credits are Available on Your New Mexico State Income Tax Return?

New Mexico offers several deductions and credits on your state income tax return. Some of the most common deductions include federal income tax paid, mortgage interest, and charitable contributions. Some of the most common credits include the Working Families Tax Credit and the Low-Income Comprehensive Tax Rebate.

Conclusion

In conclusion, understanding the New Mexico state income tax is important if you are a resident of New Mexico or receive income from New Mexico sources. Make sure to file your tax return on time and take advantage of any deductions or credits that you are eligible for. If you have any questions or concerns, consult with a tax professional or contact the New Mexico Taxation and Revenue Department.

Share :