The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for taxable years beginning in 2006 or 2007:

A. For married individuals filing separate returns:

If the taxable income is:

The tax shall be:

Not over $4,000

1.7% of taxable income

Over $ 4,000 but not over $ 8,000

$ 68.00 plus 3.2% of excess over $ 4,000

Over $ 8,000 but not over $ 12,000

$ 196 plus 4.7% of excess over $ 8,000

Over $ 12,000

$ 384 plus 5.3% of excess over $ 12,000.

B. For heads of household, surviving spouses and married individuals filing joint returns:

If the taxable income is:

The tax shall be:

Not over $8,000

1.7% of taxable income

Over $ 8,000 but not over $ 16,000

$ 136 plus 3.2% of excess over $ 8,000

Over $ 16,000 but not over $ 24,000

$ 392 plus 4.7% of excess over $ 16,000

Over $ 24,000

$ 768 plus 5.3% of excess over $ 24,000.

C. For single individuals and for estates and trusts:

If the taxable income is:

The tax shall be:

Not over $5,500

1.7% of taxable income

Over $ 5,500 but not over $ 11,000

$ 93.50 plus 3.2% of excess over $ 5,500

Over $ 11,000 but not over $ 16,000

$ 269.50 plus 4.7% of excess over $ 11,000

Over $ 16,000

$ 504.50 plus 5.3% of excess over $ 16,000.

D. The tax on the sum of any lump-sum amounts included in net income is an amount equal to five multiplied by the difference between:

(1) the amount of tax due on the taxpayer's taxable income; and

(2) the amount of tax that would be due on an amount equal to the taxpayer's taxable income and twenty percent of the taxpayer's lump-sum amounts included in net income.

History: 1953 Comp. 72-15A-5; 1994, ch. 5, § 20; 2003, ch. 2, § 2; repealed and reenacted by Laws 2003, ch. 2, § 3; repealed and reenacted by Laws 2003, ch. 2, § 4; 2005 (1st S.S.) ch. 3, § 1; repealed and reenacted by Laws 2005 (1st S.S.) ch. 3, § 2.

2005 Multiple Amendments. — Laws 2005 (1st S.S.), ch. 3, § 6, effective October 28, 2005, repealed Laws 2005, ch. 104, § 3 and Laws 2003, ch. 2, § 6, providing for personal income tax rates for the January 1, 2007 to December 31, 2007 tax year. Laws 2005 (1st S.S.), ch. 3, § 2 set out above, prescribed the personal income tax rates for both the 2006 and 2007 tax years.

Laws 2005, ch. 104, § 2, amended 7-2-7 NMSA 1978, as enacted by Laws 2003, ch. 2, § 5, for the January 1, 2006 to December 31, 2006 personal income tax year; Laws 2005 (1st S.S.), ch. 3, § 6 repealed Laws 2005, ch. 104, § 2 and Laws 2003, ch. 2, § 5, effective October 28, 2005. The above section was set out as amended by Laws 2005 (1st S.S.), ch. 3, §§ 1 and 2.

Laws 2005 (1st S.S.), ch. 3, § 2, amended the January 1, 2005 to December 31, 2005 version of 7-2-7 NMSA 1978 enacted by Laws 2003, ch. 2, § 4 and amended by Laws 2005 (1st S.S.), ch. 3, § 1 to reduce the top personal income tax rate from 5.7% to 5.3% for the January 1, 2006 to December 31, 2006 tax year for married individuals filing separate returns in excess of $12,000, for heads of household, surviving spouses and married individuals filing joint returns in excess of $24,000 and for single individuals and for estates and trusts in excess of $16,000; Subsection B is amended to include heads of household returns; former Subsection D providing for separate tax rates for heads of household returns is deleted; and Subsection E is relettered as Subsection D. Laws 2005, ch. 3, § 2 was made effective January 1, 2006 by Laws 2005, ch. 3, § 7.