New Mexico’s 2026 withholding formula was released Nov. 20 by the state Taxation and Revenue Department.
Tax rates used in the formula were unchanged and continue to range from 1.5% to 5.9%. The zero tax bracket covers income of up to $8,050 annually for single employees, $12,075 annually for heads of households, or $16,100 annually for married employees, up from $7,500, $11,250, or $15,000.
Additionally, all withholding returns and statements are required to be filed electronically starting Jan. 1, 2026, the department said. The quarterly deadline for filing a report covering withholding and the workers’ compensation fee, separate from the ...