Taxation in New Mexico

Taxation in New Mexico comprises the taxation programs of the U.S state of New Mexico. All taxes are administered on state- and city-levels by the New Mexico Taxation and Revenue Department, a state agency. The principal taxes levied include state income tax, a state gross receipts tax, gross receipts taxes in local jurisdictions, state and local property taxes, and several taxes related to production and processing of oil, gas, and other natural resources.

New Mexico is among the "tax-friendly" states of the U.S., offering numerous economic incentives and tax breaks on personal and corporate income.^[1][2] It does not have inheritance tax, estate tax or franchise taxes. While New Mexico does not have a state sales tax it does have a statewide "gross receipts tax", which is commonly passed on to the consumer by businesses just like a normal sales tax.^[3][4][5] Its state income tax ranges from 1.7% to a maximum of 4.9%.^[3]