New Mexico State Income Tax Withholding
Reference Number: NFC-25-1741189057
Published: April 8, 2025
Effective: Pay Period 4, 2025
Summary
The State income tax withholding formula for New Mexico is changing effective
January 1, 2025. The Single, Married, and Head of Household withholding tables are changing.
No action on the part of the employee or the personnel office is necessary.
Tax Formula
|
State Abbreviation: |
NM |
|---|---|
|
State Tax Withholding State Code: |
35 |
|
Acceptable Exemption Form: |
W-4 (see the Additional Information section) |
|
Basis for Withholding: |
Federal Filing Status |
|
Acceptable Exemption Data: |
S/M, prior to 2020 Federal Form W-4 MS/MJ/HH, for 2020 or later Federal Form W-4 |
|
TSP Deferred: |
Yes |
|
Special Coding: |
The S and MS marital statuses will be treated as Single. The M and MJ marital statuses will be treated as Married. |
|
Additional Information: |
A State tax certificate is not required since the Federal Marital Status is used in the computation of the State formula. Employees who have not previously submitted a 2020 or later Federal Form W-4, but have submitted a prior to 2020 Federal Form W-4, will default to the prior to 2020 Federal Form W-4 submission. Employees who have not previously submitted a prior to 2020 Federal Form W-4, and have not submitted a 2020 or later Federal Form W-4, will default to Single. |
Withholding Formula (Effective Pay Period 4, 2025)
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Employees Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account — health care and dependent care deductions) from the amount computed in step 1.
- Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
- If the employee has submitted a 2020 or later Federal Form W-4, then subtract the annual deductions claimed in step 4b of the Federal Form W-4.
Note: If the result is less than zero, the Adjusted Annual Wage Amount is zero.
- Apply the taxable income computed in step 4, or if applicable, in step 5, to the following tables to determine the annual New Mexico tax withholding:
Single Tax Withholding Table
|
If the Amount of Taxable Income Is: |
The Amount of Tax Withholding Should Be: |
|---|---|
| Over $0 but not over $7,500 | $0.00 |
| Over $7,500 but not over $13,000 | $0.00 plus 1.5% of excess over $7,500 |
| Over $13,000 but not over $20,000 | $82.50 plus 3.2% of excess over $13,000 |
| Over $20,000 but not over $24,000 | $306.50 plus 3.2% of excess over $20,000 |
| Over $24,000 but not over $33,000 | $434.50 plus 4.3% of excess over $24,000 |
| Over $33,000 but not over $41,000 | $821.50 plus 4.3% of excess over $33,000 |
| Over $41,000 but not over $58,000 | $1,165.50 plus 4.7% of excess over $41,000 |
| Over $58,000 but not over $74,000 | $1,964.50 plus 4.7% of excess over $58,000 |
| Over $74,000 but not over $217,500 | $2,716.50 plus 4.9% of excess over $74,000 |
| $217,500 and over | $9,748 plus 5.9% of excess over $217,500 |
Married Tax Withholding Table
|
If the Amount of Taxable Income Is: |
The Amount of Tax Withholding Should Be: |
|---|---|
| Over $0 but not over $15,000 | $0.00 |
| Over $15,000 but not over $23,000 | $0.00 plus 1.5% of excess over $15,000 |
| Over $23,000 but not over $31,000 | $120 plus 3.2% of excess over $23,000 |
| Over $31,000 but not over $40,000 | $376 plus 3.2% of excess over $31,000 |
| Over $40,000 but not over $56,000 | $664 plus 4.3% of excess over $40,000 |
| Over $56,000 but not over $65,000 | $1,352 plus 4.3% of excess over $56,000 |
| Over $65,000 but not over $101,000 | $1,739 plus 4.7% of excess over $65,000 |
| Over $101,000 but not over $115,000 | $3,431 plus 4.7% of excess over $101,000 |
| Over $115,000 but not over $330,000 | $4,089 plus 4.9% of excess over $115,000 |
| $330,000 and over | $14,624 plus 5.9% of excess over $330,000 |
Head of Household Tax Withholding Table
|
If the Amount of Taxable Income Is: |
The Amount of Tax Withholding Should Be: |
|---|---|
| Over $0 but not over $11,250 | $0.00 |
| Over $11,250 but not over $19,250 | $0.00 plus 1.5% of excess over $11,250 |
| Over $19,250 but not over $27,250 | $120 plus 3.2% of excess over $19,250 |
| Over $27,250 but not over $36,250 | $376 plus 3.2% of excess over $27,250 |
| Over $36,250 but not over $52,250 | $664 plus 4.3% of excess over $36,250 |
| Over $52,250 but not over $61,250 | $1,352 plus 4.3% of excess over $52,250 |
| Over $61,250 but not over $97,250 | $1,739 plus 4.7% of excess over $61,250 |
| Over $97,250 but not over $111,250 | $3,431 plus 4.7% of excess over $97,250 |
| Over $111,250 but not over $326,250 | $4,089 plus 4.9% of excess over $111,250 |
| $326,250 and over | $14,624 plus 5.9% of excess over $326,250 |
- Divide the annual New Mexico tax withholding calculated in step 6 by the number of pay dates in the tax year to obtain the biweekly New Mexico tax withholding.
- Add the additional amount or percentage elected by the employee to the pay period tax calculated in step 7 to determine the amount of tax to be withheld for the pay period.
Resources
To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) Home page. Select the Publications tab and select Taxes from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.
Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.