TAXES 17-05, New Mexico State Income Tax Withholding

Published: March 8, 2017
Effective: Pay Period 06, 2017

Summary

The Single or Head of Household and Married income tax withholdings for the State of New Mexico will increase as a result of changes to the formula for tax year 2017. 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, 2017)

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 $2,300	$0.00
Over $2,300 but not over $7,800	$0.00 plus 1.7% of excess over $2,300
Over $7,800 but not over $13,300	$93.50 plus 3.2% of excess over $7,800
Over $13,300 but not over $18,300	$269.50 plus 4.7% of excess over $13,300
Over $18,300 but not over $28,300	$504.50 plus 4.9% of excess over $18,300
Over $28,300 but not over $44,300	$994.50 plus 4.9% of excess over $28,300
Over $44,300 but not over $67,300	$1,778.50 plus 4.9% of excess over $44,300
Over $67,300	$2,905.50 plus 4.9% of excess over $67,300

Married Tax Withholding Table

If the Amount of Taxable Income Is:	The Amount of Tax Withholding Should Be:
Over $0 but not over $8,650	$0.00
Over $8,650 but not over $16,650	$0.00 plus 1.7% of excess over $8,650
Over $16,650 but not over $24,650	$136.00 plus 3.2% of excess over $16,650
Over $24,650 but not over $32,650	$392.00 plus 4.7% of excess over $24,650
Over $32,650 but not over $48,650	$768.00 plus 4.9% of excess over $32,650
Over $48,650 but not over $72,650	$1,552.00 plus 4.9% of excess over $48,650
Over $72,650 but not over $108,650	$2,728.00 plus 4.9% of excess over $72,650
Over $108,650	$4,492.00 plus 4.9% of excess over $108,650

Divide the annual New Mexico tax withholding calculated in step 6 by 26 to obtain the biweekly New Mexico tax withholding.

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) homepage. Select the Publications tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Select the desired State from the map provided for the formula.

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