The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for any taxable year beginning on or after January 1, 2021:

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 but not over $157,500

$384 plus 4.9% of excess over $12,000

Over $157,500

$7,513.50 plus 5.9% of excess over $157,500.

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 but not over $315,000

$768 plus 4.9% of excess over $24,000

Over $315,000

$15,027 plus 5.9% of excess over $315,000.

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 but not over $210,000

$504.50 plus 4.9% of excess over $16,000

Over $210,000

$10,010.50 plus 5.9% of excess over $210,000.

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: Laws 2005, ch. 104, § 4; 2019, ch. 270, § 12.

The 2019 amendment, revised individual income tax rates and individual income tax brackets; in Subsection A, after "If the taxable income is", deleted the remainder of the subsection; deleted former Subsections B and C and added new Subsections B and C.

Contingent effective dates. — Laws 2019, ch. 270, § 61 provided that the effective date of the provisions of Laws 2019, ch. 270, § 12 is the date on which the secretary of finance and administration certifies to the New Mexico compilation commission and the director of the legislative council service that fiscal year 2020 recurring general fund revenues are less than five percent above fiscal year 2019 recurring general fund revenues. If the certification is not made prior to February 19, 2021, the provisions of Laws 2019, ch. 270, § 12 shall not take effect.

Applicability. — Laws 2019, ch. 270, § 59 provided that the provisions of Laws 2019, ch. 270, § 12 apply to taxable years beginning on or after January 1, 2021.