New Mexico Releases 2026 Withholding Formula

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 ...