TAXES 18-36, New Mexico State Income Tax Withholding | National Finance Center

TAXES 18-36, New Mexico State Income Tax Withholding

Published: March 21, 2018
Effective: Pay Period 06, 2017

Summary

This tax bulletin is being updated to remove the number of pay periods in steps 4 and 7 and replace with the phrase "number of pay dates in the tax year," thereby preventing any confusion in future years. All other information in this bulletin remains the same.

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)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. 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.
  3. 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.
  4. Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
  5. 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

  6. 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

    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

    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

     

  7. 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.

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 and select U.S. Income Tax Formulas 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.