TAXES 21-23, New Mexico State Income Tax Withholding

Published: May 07, 2021
Effective: Pay Period 08, 2021

Summary

The Single and Married tax withholding formulas for the State of New Mexico have changed.

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 and newer 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 newer 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 W-4, and have not submitted a 2020 or newer Federal Form W-4, will default to Single.

Withholding Formula (Effective Pay Period 08, 2021)

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.

Apply the taxable income computed in step 4 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 $6,275	$0.00
Over $6,275 but not over $11,775	$0.00 plus 1.7% of excess over $6,275
Over $11,775 but not over $17,275	$93.50 plus 3.2% of excess over $11,775
Over $17,275 but not over $22,275	$269.50 plus 4.7% of excess over $17,275
Over $22,275 but not over $32,275	$504.50 plus 4.9% of excess over $22,275
Over $32,275 but not over $48,275	$994.50 plus 4.9% of excess over $32,275
Over $48,275 but not over $71,275	$1,778.50 plus 4.9% of excess over $48,275
Over $71,275 but not over $131,275	$2,905.50 plus 4.9% of excess over $71,275
Over $131,275 but not over $216,275	$5,845.50 plus 4.9% of excess over $131,275
Over $216,275	$10,010.50 plus 5.9% of excess over $216,275

Married Tax Withholding Table

If the Amount of Taxable Income Is:	The Amount of Tax Withholding Should Be:
Over $0 but not over $12,550	$0.00
Over $12,550 but not over $20,550	$0.00 plus 1.7% of excess over $12,550
Over $20,550 but not over $28,550	$136.00 plus 3.2% of excess over $20,550
Over $28,550 but not over $36,550	$392.00 plus 4.7% of excess over $28,550
Over $36,550 but not over $52,550	$768.00 plus 4.9% of excess over $36,550
Over $52,550 but not over $76,550	$1,552.00 plus 4.9% of excess over $52,550
Over $76,550 but not over $112,550	$2,728.00 plus 4.9% of excess over $76,550
Over $112,550 but not over $212,550	$4,492.00 plus 4.9% of excess over $112,550
Over $212,550 but not over $327,550	$9,392.00 plus 4.9% of excess over $212,550
Over $327,550	$15,027.00 plus 5.9% of excess over $327,550

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 $9,400	$0.00
Over $9,400 but not over $17,400	$0.00 plus 1.7% of excess over $9,400
Over $17,400 but not over $25,400	$136.00 plus 3.2% of excess over $17,400
Over $25,400 but not over $33,400	$392.00 plus 4.7% of excess over $25,400
Over $33,400 but not over $49,400	$768.00 plus 4.9% of excess over $33,400
Over $49,400 but not over $73,400	$1,552.00 plus 4.9% of excess over $49,400
Over $73,400 but not over $109,400	$2,728.00 plus 4.9% of excess over $73,400
Over $109,400 but not over $209,400	$4,492.00 plus 4.9% of excess over $109,400
Over $209,400 but not over $324,400	$9,392.00 plus 4.9% of excess over $209,400
Over $324,400	$15,027.00 plus 5.9% of excess over $324,400

Divide the annual New Mexico tax withholding calculated in step 5 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) Home page. 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.

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