TAXES 18-57, New Mexico State Income Tax Withholding | National Finance Center

TAXES 18-57, New Mexico State Income Tax Withholding

Published: July 3, 2018
Effective: Pay Period 14, 2018

Summary

The income tax withholding formula for the State of New Mexico will change as follows:

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 14, 2018)

  1. Subtract the nontaxable biweekly Thrift Savings Plan (TSP) 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 (e.g., 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 = $4,150 x Number of Exemptions (up to a maximum of 3)

  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 $3,700

    $0.00

    Over $3,700 but not over $9,200

    $0.00 plus 1.7% of excess over $3,700

    Over $9,200 but not over $14,700

    $93.50 plus 3.2% of excess over $9,200

    Over $14,700 but not over $19,700

    $269.50 plus 4.7% of excess over $14,700

    Over $19,700 but not over $29,700

    $504.50 plus 4.9% of excess over $19,700

    Over $29,700 but not over $45,700

    $994.50 plus 4.9% of excess over $29,700

    Over $45,700 but not over $68,700

    $1,778.50 plus 4.9% of excess over $45,700

    Over $68,700

    $2,905.50 plus 4.9% of excess over $68,700

     

    Married Tax Withholding Table

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $11,550

    $0.00

    Over $11,550 but not over $19,550

    $0.00 plus 1.7% of excess over $11,550

    Over $19,550 but not over $27,550

    $136.00 plus 3.2% of excess over $19,550

    Over $27,550 but not over $35,550

    $392.00 plus 4.7% of excess over $27,550

    Over $35,550 but not over $51,550

    $768.00 plus 4.9% of excess over $35,550

    Over $51,550 but not over $75,550

    $1,552.00 plus 4.9% of excess over $51,550

    Over $75,550 but not over $111,550

    $2,728.00 plus 4.9% of excess over $75,550

    Over $111,550

    $4,492.00 plus 4.9% of excess over $111,550

  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.

Previous Tax Bulletin

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.