TAXES 16-20, New Mexico State Income Tax Withholding

Published: March 25, 2016
Effective: Pay Period 06, 2016

Summary

The income tax withholding formula for the State of New Mexico will include the following changes:

The exemption allowance, per exemption, will increase from $4,000 to $4,050.
The Single or Head of Household and Married withholding tables will decrease.

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:	None
Basis for Withholding:	Federal Exemptions
Acceptable Exemption Data:	None
TSP Deferred:	Yes
Special Coding:	None
Additional Information:	A State tax certificate is not required since Federal exemptions are used in the computation of the State formula.

Withholding Formula (Effective Pay Period 06, 2016)

Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
Subtract the nontaxable biweekly Federal 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 (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
Determine the exemption allowance by applying the following guideline and subtract this amount from the gross annual wages to compute the taxable income:
Exemption Allowance = $4,050 x Number of Exemptions

Apply the taxable income computed in step 5 to the following table(s) to determine the annual New Mexico tax withholding:

Single or 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 $2,250	$0.00
Over $2,250 but not over $7,750	$0.00 plus 1.7% of excess over $2,250
Over $7,750 but not over $13,250	$93.50 plus 3.2% of excess over $7,750
Over $13,250 but not over $18,250	$269.50 plus 4.7% of excess over $13,250
Over $18,250 but not over $28,250	$504.50 plus 4.9% of excess over $18,250
Over $28,250 but not over $44,250	$994.50 plus 4.9% of excess over $28,250
Over $44,250 but not over $67,250	$1,778.50 plus 4.9% of excess over $44,250
Over $67,250	$2,905.50 plus 4.9% of excess over $67,250

Married Tax Withholding Table

If the Amount of Taxable Income Is:	The Amount of Tax Withholding Should Be:
Over $0 but not over $8,550	$0.00
Over $8,550 but not over $16,550	$0.00 plus 1.7% of excess over $8,550
Over $16,550 but not over $24,550	$136.00 plus 3.2% of excess over $16,550
Over $24,550 but not over $32,550	$392.00 plus 4.7% of excess over $24,550
Over $32,550 but not over $48,550	$768.00 plus 4.9% of excess over $32,550
Over $48,550 but not over $72,550	$1,552.00 plus 4.9% of excess over $48,550
Over $72,550 but not over $108,550	$2,728.00 plus 4.9% of excess over $72,550
Over $108,550	$4,492.00 plus 4.9% of excess over $108,550

Divide the annual New Mexico tax withholding by 26 to obtain the biweekly New Mexico tax withholding.

Additional Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the NFC homepage. Click the Publications tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Click the desired State from the map provided for the formula.

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