us-nm/guidance/trd/ty2026/fyi-104-withholding-tax/document-1

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us-nm/guidance/trd/ty2026/fyi-104-withholding-tax/document-1 · Axiom

FYI-104  REV. 11/2025  page 1

FYI-104 FOR YOUR INFORMATION Tax Information/Policy Office  P.O. Box 630  Santa Fe, New Mexico 87504-0630

NEW MEXICO

WITHHOLDING TAX Effective January 1, 2026 This publication contains general information on the New Mexico withholding tax and tax tables for the percentage method of withholding. Taxpayers should be aware that subsequent legislation, regulations, court decisions, revenue rulings, notices and announcements may affect the accuracy of its contents. For more information, please contact the nearest tax district field office or check the department’s web site at https://www.tax.newmexico.gov/. Please Note: During the 2025 legislative session House Bill 218 was passed and signed into law which provided that, beginning with the quarter starting January 1, 2026, every employer or payer is required to report quarterly their employee’s gross wages, pensions or annuity payments, and the state income tax withheld from these payments. This information is reported on the TRD-41431, Workers Compensation Fee Return and Employees Quarterly Wage and Withholding Report and is due the 25th day of the month following the close of the calendar quarter. This report is filed in addition to the tax returns used to pay withholding tax, the TRD-41414, Wage Withholding Tax Return and TRD- 41409, Non-Wage Withholding Tax Return. The withholding report, as well as the withholding tax returns and any withholding statements required to be submitted to the Department, are all now required to be submitted electronically. CONTENTS

General Information For New Mexico Withholding Tax ..................................................................... 2 Who Must Withhold ......................................................................................................... 2 Amount to Withhold ......................................................................................................... 2 How to use the Withholding Tax Tables ........................................................................... 2 How to Report and Pay Withholding Taxes ..................................................................... 3 Required Quarterly Withholding Report ........................................................................... 3 Additional Withholding Amounts ...................................................................................... 3 Withholding on Gambling Winnings ................................................................................. 3 Annual Withholding Statements ....................................................................................... 3 Annual Reconciliation ...................................................................................................... 4 Withholding from Irregular, Supplemental Wages, or Fringe Benefits .............................. 4 Special Situations ............................................................................................................ 4 For Further Information .................................................................................................... 4

New Mexico Taxation and Revenue Department

FYI-104  REV. 11/2025  page 2 General Information For New Mexico Withholding Tax New Mexico withholding tax is similar to federal withholding tax. It is calculated based on an estimate of an employee or individual’s New Mexico income tax liability and is then credited against the employee or individual’s actual income tax liability on that person’s New Mexico personal income tax return. New Mexico does not have a state equivalent of the Federal Form W-4. Instead, employees should complete a copy of the Federal Form W-4 for New Mexico withholding tax purposes, writing "For New Mexico State Withholding Only" across the top in prominent letters. Employers should keep the New Mexico W-4 in the employee's personnel file. This duplicate W-4 is not mandatory. It is a convenience for employer and employee. Employees who have income that is exempt from New Mexico tax (for example, Native Americans working and living on their tribal land; military members with income from active-duty military service) should not have New Mexico tax withheld. Employees with exempt income should follow Step 4(c) on the 2020 or later federal W-4 form. The withholding tables in this publication have been updated to reflect the standard deduction for the year and the change to the federal W-4 by removing withholding allowance deduction amounts from wages. It may be beneficial to examine the withholding changes for both federal and state taxes and determine if employees would like additional amounts withheld from their paychecks for each pay period. If the employee would like adjustments, they can do so on the federal W-4 form. Employees may opt to have additional amounts of money taken out from their paychecks for New Mexico withholding purposes. This can be requested by employees on their New Mexico withholding W-4 described above. The Department’s guidance on withholding relies on the Internal Revenue Service (IRS) information for accuracy. This publication is subject to revision as further guidance from the IRS is released. Who Must Withhold Every employer, including employers of some agricultural workers, who withholds a portion of an employee’s wages for payment of federal income tax must withhold New Mexico income tax. There is a limited exception for certain nonresident employees (See Notes item 2.) Others required to withhold New Mexico income tax include gambling establishments on paid winnings and payers of pension and annuity income when requested to do so. More information is provided on this below. “Employer” means a person or an employee of that person, doing business in New Mexico or deriving income from New Mexico sources who pays wages to an employee for services performed. An employer is the person having control of the payment of wages. “Employee” means a New Mexico resident who performs services either within or without the state for an employer, or a nonresident of New Mexico who performs services within the state for an employer. “Wages” means remuneration in cash or other form for services performed by an employee for an employer. Notes: 1) Pension and annuity income of a New Mexico resident is subject to income tax in New Mexico, but New Mexico does not require payers to withhold state income tax on pensions and annuities unless the payee requests the payer of their retirement benefits to withhold state tax. To report withholding tax, a payer must be registered with the state using TRD-41409, Non-wage Withholding Tax Return. 2) Employers are not required to withhold New Mexico income tax from wages of nonresident employees working in New Mexico for 15 or fewer days during the calendar year. 3) Persons who are self-employed should not report withholding tax on their wages. Self-employed individuals should make estimated payments using the Form PIT-ES. Amount to Withhold Refer to the New Mexico State Wage Withholding Tax Tables for Percentage Method of Withholding starting on page 5 of this publication for the amount to withhold. No withholding is required if the total withholding for an employee during any one month is less than one dollar. For New Mexico residents, the employer is required to withhold New Mexico income tax from all wages of the employee regardless of the employee’s work location. For nonresident employees, the employer is required to withhold New Mexico income tax only from wages the employee earns within the state. Refer to definitions of “employer,” “employee” and “wages” to determine if withholding tax is required. It is the responsibility of the employer to determine if withholding is due based on the status of the employer and employee in New Mexico. If an employer determines that they are not required to pay withholding taxes, the employer should discuss this with the employee. If no withholding taxes are paid for an employee who will owe New Mexico personal income taxes, and no estimated payments are made by the employee, there is a high likelihood that an underpayment penalty will be due when the employee files and pays their personal income taxes. More information on this can be found in FYI-320, PIT-ES: Personal Income Tax Estimated Payments. How to use the Withholding Tax Tables Determine the amount to withhold from the appropriate tax tables starting on page 5 based on the payroll period and the employee’s filing status. Example: A married employee has taxable wages of $1,000.00 weekly. This employee has also asked that an additional $20.00 be taken out of their check each pay period.

New Mexico Taxation and Revenue Department

FYI-104  REV. 11/2025  page 3 1. Determine the withholding based on the taxable wage payment of $1,000.00 2. Use Table 1 for weekly pay period. Use section (b) for a married person. If the amount of wages is over $790 but not over $1,098, the amount of state tax withheld shall be $12.77 + 4.3% of excess over $790. 3. $1000.00-$790.00 = $210.00 x 0.043 = $9.03 4. $12.77 + $9.03 = $21.80 withholding tax due 5. $21.80 + $20.00 (Additional withholding requested by employee) = $41.80. How to Report and Pay Withholding Taxes Use TRD-41414, Wage Withholding Tax Return to report withholding tax from an employee’s wages and TRD- 41409, Non-Wage Withholding Tax Return to report withholding tax from pensions and annuities, gambling winnings, or other withholding tax a payer may voluntarily choose to withhold for a payee. All tax returns can be filed online at https://tap.state.nm.us. A tax return must be filed whether or not any tax is due. If no withholding tax is due, file a “zero” return. For more information on due dates and how to file, consult the form instructions. Reporting withholding information to the Department of Workforce Solutions and the Workers Compensation Administration does not fulfill your obligation to report and pay withholding tax to the Taxation and Revenue Department. Taxpayers must still file and pay using one of the methods described in the above paragraph. If you change your business name or address, or need to cancel your New Mexico Business Tax Identification Number (NMBTIN), use Form ACD-31015, Business Tax Registration Application and Update Form. Your reporting obligation does not cease automatically when you stop doing business or paying wages. You must notify the Department to cancel your NMBTIN. Child support withholding is NOT reported to the Taxation and Revenue Department. For information about child support withholding, you will need to contact the Human Services Department at 505-827-7200. If you use the cumulative method of withholding for federal withholding, you may use this same method for your state withholding. Required Quarterly Withholding Report Starting with the quarter beginning January 1, 2026, every employer or payer is required to report quarterly their employee’s gross wages, pensions and annuity payments and the state income tax withheld from these payments. This information is provided on the TRD- 41431, Workers Compensation Fee Return and Employees Quarterly Wage and Withholding Report. The TRD-41431 is due the 25th day of the month following the close of the calendar quarter and is required to be filed electronically. Included with the quarterly withholding report is the Workers’ Compensation Fee Return (formerly the WC-1) which allows employers to report and pay the workers’ compensation fee for each employee, as well as provide the other necessary information for each employee required by statute (Section 7-3-13 NMSA 1978). Additional Withholding Amounts Many employees request additional amounts be withheld for federal purposes (see Form W-4) but very few consider additional withholding for state purposes. Additional state withholding may be done on the W-4 kept for New Mexico withholding purposes described above. Withholding on Gambling Winnings Operators of gambling establishments (racetracks, casinos, state lottery, bingo), including operators that are nonprofit entities, must withhold 6% from winnings and file income and withholding information returns for state purposes if they are required to withhold or report for federal purposes. Operators must report and pay the amount of state tax withheld from gambling winnings on the TRD-41409, Non-Wage Withholding Tax Return. Withholding tax is required to be paid for both residents and nonresidents. Annual Withholding Statements Every person who has withheld state tax during the year from wages, pensions and annuities, or gambling winnings, is required to file electronically an annual statement of withholding on or before the last day of January for each employee, pension or annuity recipient, or gambling winner. New Mexico accepts any Federal income and withholding statement submitted electronically, including Federal Form W-2, W2-G, 1042-S, and 1099-R, or any substitute form acceptable to the Internal Revenue Service, so long as it reflects the withholder’s name, address and identification number, the recipient's name and social security number, and the amount of New Mexico income and withholding. If employers have established a medical care savings account program for their employees, it is the responsibility of the employer to determine what amounts are exempt from taxation. The employer reduces the New Mexico taxable wages reported on Federal Form W-2 by the amounts established by the employer or account administrator as exempt from income tax. These annual income and withholding statements must be submitted to the Department electronically, either through the Combined Federal/State Filing Program, or by using TAP at https://tap.state.nm.us.Taxpayers who need to submit these statements to the Department may learn more by reviewing Publication FYI-330, Income And Withholding Information Returns And Filing Methods. Note: The law requires that employers provide information regarding state assistance for low-income New Mexicans, including information regarding tax rebates and credits for low-income tax filers provided by the state, such as the low- income comprehensive tax rebate and the working families tax credit. The information shall be provided in English and Spanish. This information is located in B-300.10, State Assistance for Low-Income New Mexicans. This publication is also available in English and Spanish and can be located on the Department’s website found here:

New Mexico Taxation and Revenue Department

FYI-104  REV. 11/2025  page 4 https://www.tax.newmexico.gov/forms-publications/. It is located in the folders Publications > Bulletins. Annual Reconciliation New Mexico withholding taxpayers may file Form RPD- 41072, Annual Summary of Withholding Tax. The report is available for a taxpayer’s use but is not required to be filed. This report allows for the taxpayer to reconcile the total amounts shown as withheld on annual withholding statements furnished to withholdees (Federal Forms W-2, W-2G or 1099-R) with the total tax withheld and paid to New Mexico on the TRD-41414, Wage Withholding Tax Return and TRD-41409, Non-Wage Withholding Tax Return. If the taxpayer has determined that they have underreported or overreported withholding on a withholding return, they should amend the returns for the period(s) in which the reporting error occurred and either pay the difference remitted to the Department or claim a refund. For more information on filing withholding statements, see FYI-330, Income and Withholding Information Returns and Filing Methods. Withholding from Irregular, Supplemental Wages, or Fringe Benefits The same method used for calculating federal withholding on irregular or supplemental wages should be used for state withholding. If the taxpayer uses the cumulative method of withholding for federal withholding, this same method may be used for state withholding. If withholding from fringe benefits for federal purposes, the taxpayer must also withhold from fringe benefits for state purposes using the same method used for calculating federal withholding. If the federal withholding is calculated using a flat percent, a flat 5.9% of the supplemental wage or fringe benefit amount should be withheld for state tax purposes. NOTE: In the case of a married employee who has elected withholding at the higher single rate for federal purposes, the single rate for New Mexico state withholding purposes must also be used. Special Situations Generally, if an employee’s withholding is correct for federal purposes, it will be correct for state income tax purposes, but there are certain situations in which an employee may be correctly withholding for federal purposes but under withhold for state purposes: 1) If the employee has supplemental, overtime pay, bonuses that are paid separately from their normal wages, the Department recommends using Table 8 on page 8. 2) If the employee increased W-4 allowances to offset expected federal tax credits such as the Child Tax Credit or credits for child or dependent care expenses. (If the employee wishes to reduce their withholding for state purposes they can use the 2020 Federal Form W- 4 (Step 4b) 3) If the employee requested that additional amounts be withheld for federal purposes. There are also situations where individuals may have income that is subject to federal taxation but exempt from taxation by New Mexico. In these situations, New Mexico withholding on the exempt income would not be necessary. Examples of income exempt from New Mexico tax are: 1) Income of a Native American who is a member of a New Mexico federally recognized Indian nation, tribe or pueblo that was wholly earned on the lands of the Indian nation or pueblo of which the individual is an enrolled member while domiciled on that land, Indian nation or pueblo. 2) Income from active-duty military service or the income of spouses of an active-duty service members who elect to keep their out-of-state residence or use the same out-of-state residence as the servicemember. Employment may require some New Mexico residents to spend extensive time in another state with an income tax that is comparable to the New Mexico income tax. Residents of New Mexico are generally subject to New Mexico income tax on all their income, but if that income is also taxed by another state, New Mexico allows a credit for the other state’s income tax on that income on their personal income tax return. New Mexico withholding tax can be reduced or eliminated on such wages. To reduce or eliminate withholding on such wages, taxpayers should indicate this on their federal Form W-4 for New Mexico withholding tax. For Further Information All Department forms and FYIs mentioned here are available on the Department’s forms and publications webpage at https://www.tax.newmexico.gov/forms- publications/ or from your local district office. As mentioned above, wage withholding tax returns and reports are required to be filed electronically, but viewing PDF files of the forms and instructions online may be helpful for taxpayers while they file. All withholding returns and reports can be filed using the Department’s online filing system, Taxpayer Access Point (TAP), located here: https://tap.state.nm.us. If employees express concern about their withholding, employers may recommend that they obtain the following publications: ➢ Internal Revenue Service Form W-4, Employee’s Withholding Allowance Certificate. (New Mexico does not have a state equivalent of the federal W-4 form. Employees should complete a copy of the federal W- 4 for New Mexico, writing "For New Mexico State Withholding Only" across the top in prominent letters. ➢ Internal Revenue Service website https://www.irs.gov/individuals/tax-withholding-estimator.

(a) SINGLE person (b) MARRIED person (c) HEAD of HOUSEHOLD person If the amount The amount of state If the amount The amount of state If the amount The amount of state of wages is: tax withheld shall be: of wages is: tax withheld shall be: of wages is: tax withheld shall be: Not Over 155 $ $0.00 Not Over 310 $ $0.00 Not Over 232 $ $0.00 Over: But not over: of excess over - Over: But not over: of excess over - Over: But not over: of excess over - 155 $ 261 $ 1.5% 155 $ 310 $ 463 $ 1.5% 310 $ 232 $ 386 $ 1.5% 232 $ 261 $ 395 $ 1.59 $ + 3.2% 261 $ 463 $ 617 $ 2.31 $ + 3.2% 463 $ 386 $ 540 $ 2.31 $ + 3.2% 386 $ 395 $ 472 $ 5.89 $ + 3.2% 395 $ 617 $ 790 $ 7.23 $ + 3.2% 617 $ 540 $ 713 $ 7.23 $ + 3.2% 540 $ 472 $ 645 $ 8.36 $ + 4.3% 472 $ 790 $ 1,098 $ 12.77 $ + 4.3% 790 $ 713 $ 1,021 $ 12.77 $ + 4.3% 713 $ 645 $ 799 $ 15.80 $ + 4.3% 645 $ 1,098 $ 1,271 $ 26.00 $ + 4.3% 1,098 $ 1,021 $ 1,194 $ 26.00 $ + 4.3% 1,021 $ 799 $ 1,126 $ 22.41 $ + 4.7% 799 $ 1,271 $ 1,963 $ 33.44 $ + 4.7% 1,271 $ 1,194 $ 1,886 $ 33.44 $ + 4.7% 1,194 $ 1,126 $ 1,434 $ 37.78 $ + 4.7% 1,126 $ 1,963 $ 2,233 $ 65.98 $ + 4.7% 1,963 $ 1,886 $ 2,155 $ 65.98 $ + 4.7% 1,886 $ 1,434 $ 4,193 $ 52.24 $ + 4.9% 1,434 $ 2,233 $ 6,367 $ 78.63 $ + 4.9% 2,233 $ 2,155 $ 6,290 $ 78.63 $ + 4.9% 2,155 $ 4,193 $ and over 187.46 $ + 5.9% 4,193 $ 6,367 $ and over 281.23 $ + 5.9% 6,367 $ 6,290 $ and over 281.23 $ + 5.9% 6,290 $ (a) SINGLE person (b) MARRIED person (c) HEAD of HOUSEHOLD person If the amount The amount of state If the amount The amount of state If the amount The amount of state of wages is: tax withheld shall be: of wages is: tax withheld shall be: of wages is: tax withheld shall be: Not Over 310 $ $0.00 Not Over 619 $ $0.00 Not Over 464 $ $0.00 Over: But not over: of excess over - Over: But not over: of excess over - Over: But not over: of excess over - 310 $ 521 $ 1.5% 310 $ 619 $ 927 $ 1.5% 619 $ 464 $ 772 $ 1.5% 464 $ 521 $ 790 $ 3.17 $ + 3.2% 521 $ 927 $ 1,235 $ 4.62 $ + 3.2% 927 $ 772 $ 1,080 $ 4.62 $ + 3.2% 772 $ 790 $ 944 $ 11.79 $ + 3.2% 790 $ 1,235 $ 1,581 $ 14.46 $ + 3.2% 1,235 $ 1,080 $ 1,426 $ 14.46 $ + 3.2% 1,080 $ 944 $ 1,290 $ 16.71 $ + 4.3% 944 $ 1,581 $ 2,196 $ 25.54 $ + 4.3% 1,581 $ 1,426 $ 2,041 $ 25.54 $ + 4.3% 1,426 $ 1,290 $ 1,598 $ 31.60 $ + 4.3% 1,290 $ 2,196 $ 2,542 $ 52.00 $ + 4.3% 2,196 $ 2,041 $ 2,388 $ 52.00 $ + 4.3% 2,041 $ 1,598 $ 2,252 $ 44.83 $ + 4.7% 1,598 $ 2,542 $ 3,927 $ 66.88 $ + 4.7% 2,542 $ 2,388 $ 3,772 $ 66.88 $ + 4.7% 2,388 $ 2,252 $ 2,867 $ 75.56 $ + 4.7% 2,252 $ 3,927 $ 4,465 $ 131.96 $ + 4.7% 3,927 $ 3,772 $ 4,311 $ 131.96 $ + 4.7% 3,772 $ 2,867 $ 8,387 $ 104.48 $ + 4.9% 2,867 $ 4,465 $ 12,735 $ 157.27 $ + 4.9% 4,465 $ 4,311 $ 12,580 $ 157.27 $ + 4.9% 4,311 $ 8,387 $ and over 374.92 $ + 5.9% 8,387 $ 12,735 $ and over 562.46 $ + 5.9% 12,735 $ 12,580 $ and over 562.46 $ + 5.9% 12,580 $ New Mexico State Wage Withholding Tax Tables for Percentage Method of Withholding (For wages paid on or after January 1, 2026) Table 1 - If the Payroll Period with Respect to an Employee is WEEKLY Table 2 - If the Payroll Period with Respect to an Employee is BI-WEEKLY FYI-104 Rev. 11/2025 Page 5

(a) SINGLE person (b) MARRIED person (c) HEAD of HOUSEHOLD person If the amount The amount of state If the amount The amount of state If the amount The amount of state of wages is: tax withheld shall be: of wages is: tax withheld shall be: of wages is: tax withheld shall be: Not Over 304 $ $0.00 Not Over 608 $ $0.00 Not Over 456 $ $0.00 Over: But not over: of excess over - Over: But not over: of excess over - Over: But not over: of excess over - 335 $ 565 $ 1.5% 335 $ 671 $ 1,004 $ 1.5% 671 $ 503 $ 836 $ 1.5% 503 $ 565 $ 856 $ 3.44 $ + 3.2% 565 $ 1,004 $ 1,338 $ 5.00 $ + 3.2% 1,004 $ 836 $ 1,170 $ 5.00 $ + 3.2% 836 $ 856 $ 1,023 $ 12.77 $ + 3.2% 856 $ 1,338 $ 1,713 $ 15.67 $ + 3.2% 1,338 $ 1,170 $ 1,545 $ 15.67 $ + 3.2% 1,170 $ 1,023 $ 1,398 $ 18.10 $ + 4.3% 1,023 $ 1,713 $ 2,379 $ 27.67 $ + 4.3% 1,713 $ 1,545 $ 2,211 $ 27.67 $ + 4.3% 1,545 $ 1,398 $ 1,731 $ 34.23 $ + 4.3% 1,398 $ 2,379 $ 2,754 $ 56.33 $ + 4.3% 2,379 $ 2,211 $ 2,586 $ 56.33 $ + 4.3% 2,211 $ 1,731 $ 2,440 $ 48.56 $ + 4.7% 1,731 $ 2,754 $ 4,254 $ 72.46 $ + 4.7% 2,754 $ 2,586 $ 4,086 $ 72.46 $ + 4.7% 2,586 $ 2,440 $ 3,106 $ 81.85 $ + 4.7% 2,440 $ 4,254 $ 4,838 $ 142.96 $ + 4.7% 4,254 $ 4,086 $ 4,670 $ 142.96 $ + 4.7% 4,086 $ 3,106 $ 9,085 $ 113.19 $ + 4.9% 3,106 $ 4,838 $ 13,796 $ 170.38 $ + 4.9% 4,838 $ 4,670 $ 13,628 $ 170.38 $ + 4.9% 4,670 $ 9,085 $ and over 406.17 $ + 5.9% 9,085 $ 13,796 $ and over 609.33 $ + 5.9% 13,796 $ 13,628 $ and over 609.33 $ + 5.9% 13,628 $ (a) SINGLE person (b) MARRIED person (c) HEAD of HOUSEHOLD person If the amount The amount of state If the amount The amount of state If the amount The amount of state of wages is: tax withheld shall be: of wages is: tax withheld shall be: of wages is: tax withheld shall be: Not Over 671 $ $0.00 Not Over 1,342 $ $0.00 Not Over 1,006 $ $0.00 Over: But not over: of excess over - Over: But not over: of excess over - Over: But not over: of excess over - 671 $ 1,129 $ 1.5% 671 $ 1,342 $ 2,008 $ 1.5% 1,342 $ 1,006 $ 1,673 $ 1.5% 1,006 $ 1,129 $ 1,713 $ 6.88 $ + 3.2% 1,129 $ 2,008 $ 2,675 $ 10.00 $ + 3.2% 2,008 $ 1,673 $ 2,340 $ 10.00 $ + 3.2% 1,673 $ 1,713 $ 2,046 $ 25.54 $ + 3.2% 1,713 $ 2,675 $ 3,425 $ 31.33 $ + 3.2% 2,675 $ 2,340 $ 3,090 $ 31.33 $ + 3.2% 2,340 $ 2,046 $ 2,796 $ 36.21 $ + 4.3% 2,046 $ 3,425 $ 4,758 $ 55.33 $ + 4.3% 3,425 $ 3,090 $ 4,423 $ 55.33 $ + 4.3% 3,090 $ 2,796 $ 3,463 $ 68.46 $ + 4.3% 2,796 $ 4,758 $ 5,508 $ 112.67 $ + 4.3% 4,758 $ 4,423 $ 5,173 $ 112.67 $ + 4.3% 4,423 $ 3,463 $ 4,879 $ 97.13 $ + 4.7% 3,463 $ 5,508 $ 8,508 $ 144.92 $ + 4.7% 5,508 $ 5,173 $ 8,173 $ 144.92 $ + 4.7% 5,173 $ 4,879 $ 6,213 $ 163.71 $ + 4.7% 4,879 $ 8,508 $ 9,675 $ 285.92 $ + 4.7% 8,508 $ 8,173 $ 9,340 $ 285.92 $ + 4.7% 8,173 $ 6,213 $ 18,171 $ 226.38 $ + 4.9% 6,213 $ 9,675 $ 27,592 $ 340.75 $ + 4.9% 9,675 $ 9,340 $ 27,256 $ 340.75 $ + 4.9% 9,340 $ 18,171 $ and over 812.33 $ + 5.9% 18,171 $ 27,592 $ and over 1,218.67 $ + 5.9% 27,592 $ 27,256 $ and over 1,218.67 $ + 5.9% 27,256 $ New Mexico State Wage Withholding Tax Tables for Percentage Method of Withholding (For wages paid on or after January 1, 2026) Table 3 - If the Payroll Period with Respect to an Employee is SEMI-MONTHLY Table 4 - If the Payroll Period with Respect to an Employee is MONTHLY FYI-104 Rev. 11/2025 Page 6

(a) SINGLE person (b) MARRIED person (c) HEAD of HOUSEHOLD person If the amount The amount of state If the amount The amount of state If the amount The amount of state of wages is: tax withheld shall be: of wages is: tax withheld shall be: of wages is: tax withheld shall be: Not Over 2,013 $ $0.00 Not Over 4,025 $ $0.00 Not Over 3,019 $ $0.00 Over: But not over: of excess over - Over: But not over: of excess over - Over: But not over: of excess over - 2,013 $ 3,388 $ 1.5% 2,013 $ 4,025 $ 6,025 $ 1.5% 4,025 $ 3,019 $ 5,019 $ 1.5% 3,019 $ 3,388 $ 5,138 $ 20.63 $ + 3.2% 3,388 $ 6,025 $ 8,025 $ 30.00 $ + 3.2% 6,025 $ 5,019 $ 7,019 $ 30.00 $ + 3.2% 5,019 $ 5,138 $ 6,138 $ 76.63 $ + 3.2% 5,138 $ 8,025 $ 10,275 $ 94.00 $ + 3.2% 8,025 $ 7,019 $ 9,269 $ 94.00 $ + 3.2% 7,019 $ 6,138 $ 8,388 $ 108.63 $ + 4.3% 6,138 $ 10,275 $ 14,275 $ 166.00 $ + 4.3% 10,275 $ 9,269 $ 13,269 $ 166.00 $ + 4.3% 9,269 $ 8,388 $ 10,388 $ 205.38 $ + 4.3% 8,388 $ 14,275 $ 16,525 $ 338.00 $ + 4.3% 14,275 $ 13,269 $ 15,519 $ 338.00 $ + 4.3% 13,269 $ 10,388 $ 14,638 $ 291.38 $ + 4.7% 10,388 $ 16,525 $ 25,525 $ 434.75 $ + 4.7% 16,525 $ 15,519 $ 24,519 $ 434.75 $ + 4.7% 15,519 $ 14,638 $ 18,638 $ 491.13 $ + 4.7% 14,638 $ 25,525 $ 29,025 $ 857.75 $ + 4.7% 25,525 $ 24,519 $ 28,019 $ 857.75 $ + 4.7% 24,519 $ 18,638 $ 54,513 $ 679.13 $ + 4.9% 18,638 $ 29,025 $ 82,775 $ 1,022.25 $ + 4.9% 29,025 $ 28,019 $ 81,769 $ 1,022.25 $ + 4.9% 28,019 $ 54,513 $ and over 2,437.00 $ + 5.9% 54,513 $ 82,775 $ and over 3,656.00 $ + 5.9% 82,775 $ 81,769 $ and over 3,656.00 $ + 5.9% 81,769 $ (a) SINGLE person (b) MARRIED person (c) HEAD of HOUSEHOLD person If the amount The amount of state If the amount The amount of state If the amount The amount of state of wages is: tax withheld shall be: of wages is: tax withheld shall be: of wages is: tax withheld shall be: Not Over 4,025 $ $0.00 Not Over 8,050 $ $0.00 Not Over 6,038 $ $0.00 Over: But not over: of excess over - Over: But not over: of excess over - Over: But not over: of excess over - 4,025 $ 6,775 $ 1.5% 4,025 $ 8,050 $ 12,050 $ 1.5% 8,050 $ 6,038 $ 10,038 $ 1.5% 6,038 $ 6,775 $ 10,275 $ 41.25 $ + 3.2% 6,775 $ 12,050 $ 16,050 $ 60.00 $ + 3.2% 12,050 $ 10,038 $ 14,038 $ 60.00 $ + 3.2% 10,038 $ 10,275 $ 12,275 $ 153.25 $ + 3.2% 10,275 $ 16,050 $ 20,550 $ 188.00 $ + 3.2% 16,050 $ 14,038 $ 18,538 $ 188.00 $ + 3.2% 14,038 $ 12,275 $ 16,775 $ 217.25 $ + 4.3% 12,275 $ 20,550 $ 28,550 $ 332.00 $ + 4.3% 20,550 $ 18,538 $ 26,538 $ 332.00 $ + 4.3% 18,538 $ 16,775 $ 20,775 $ 410.75 $ + 4.3% 16,775 $ 28,550 $ 33,050 $ 676.00 $ + 4.3% 28,550 $ 26,538 $ 31,038 $ 676.00 $ + 4.3% 26,538 $ 20,775 $ 29,275 $ 582.75 $ + 4.7% 20,775 $ 33,050 $ 51,050 $ 869.50 $ + 4.7% 33,050 $ 31,038 $ 49,038 $ 869.50 $ + 4.7% 31,038 $ 29,275 $ 37,275 $ 982.25 $ + 4.7% 29,275 $ 51,050 $ 58,050 $ 1,715.50 $ + 4.7% 51,050 $ 49,038 $ 56,038 $ 1,715.50 $ + 4.7% 49,038 $ 37,275 $ 109,025 $ 1,358.25 $ + 4.9% 37,275 $ 58,050 $ 165,550 $ 2,044.50 $ + 4.9% 58,050 $ 56,038 $ 163,538 $ 2,044.50 $ + 4.9% 56,038 $ 109,025 $ and over 4,874.00 $ + 5.9% 109,025 $ 165,550 $ and over 7,312.00 $ + 5.9% 165,550 $ 163,538 $ and over 7,312.00 $ + 5.9% 163,538 $ Table 5 - If the Payroll Period with Respect to an Employee is QUARTERLY Table 6 - If the Payroll Period with Respect to an Employee is SEMI-ANNUAL New Mexico State Wage Withholding Tax Tables for Percentage Method of Withholding (For wages paid on or after January 1, 2026) FYI-104 Rev. 11/2025 Page 7

(a) SINGLE person (b) MARRIED person (c) HEAD of HOUSEHOLD person If the amount The amount of state If the amount The amount of state If the amount The amount of state of wages is: tax withheld shall be: of wages is: tax withheld shall be: of wages is: tax withheld shall be: Not Over 8,050 $ $0.00 Not Over 16,100 $ $0.00 Not Over 12,075 $ $0.00 Over: But not over: of excess over - Over: But not over: of excess over - Over: But not over: of excess over - 8,050 $ 13,550 $ 1.5% 8,050 $ 16,100 $ 24,100 $ 1.5% 16,100 $ 12,075 $ 20,075 $ 1.5% 12,075 $ 13,550 $ 20,550 $ 82.50 $ + 3.2% 13,550 $ 24,100 $ 32,100 $ 120.00 $ + 3.2% 24,100 $ 20,075 $ 28,075 $ 120.00 $ + 3.2% 20,075 $ 20,550 $ 24,550 $ 306.50 $ + 3.2% 20,550 $ 32,100 $ 41,100 $ 376.00 $ + 3.2% 32,100 $ 28,075 $ 37,075 $ 376.00 $ + 3.2% 28,075 $ 24,550 $ 33,550 $ 434.50 $ + 4.3% 24,550 $ 41,100 $ 57,100 $ 664.00 $ + 4.3% 41,100 $ 37,075 $ 53,075 $ 664.00 $ + 4.3% 37,075 $ 33,550 $ 41,550 $ 821.50 $ + 4.3% 33,550 $ 57,100 $ 66,100 $ 1,352.00 $ + 4.3% 57,100 $ 53,075 $ 62,075 $ 1,352.00 $ + 4.3% 53,075 $ 41,550 $ 58,550 $ 1,165.50 $ + 4.7% 41,550 $ 66,100 $ 102,100 $ 1,739.00 $ + 4.7% 66,100 $ 62,075 $ 98,075 $ 1,739.00 $ + 4.7% 62,075 $ 58,550 $ 74,550 $ 1,964.50 $ + 4.7% 58,550 $ 102,100 $ 116,100 $ 3,431.00 $ + 4.7% 102,100 $ 98,075 $ 112,075 $ 3,431.00 $ + 4.7% 98,075 $ 74,550 $ 218,050 $ 2,716.50 $ + 4.9% 74,550 $ 116,100 $ 331,100 $ 4,089.00 $ + 4.9% 116,100 $ 112,075 $ 327,075 $ 4,089.00 $ + 4.9% 112,075 $ 218,050 $ and over 9,748.00 $ + 5.9% 218,050 $ 331,100 $ and over 14,624.00 $ + 5.9% 331,100 $ 327,075 $ and over 14,624.00 $ + 5.9% 327,075 $ (a) SINGLE person (b) MARRIED person (c) HEAD of HOUSEHOLD person If the amount The amount of state If the amount The amount of state If the amount The amount of state of wages is: tax withheld shall be: of wages is: tax withheld shall be: of wages is: tax withheld shall be: Not Over 31.00 $ $0.00 Not Over 61.90 $ $0.00 Not Over 46.40 $ $0.00 Over: But not over: of excess over - Over: But not over: of excess over - Over: But not over: of excess over - 31.00 $ 52.10 $ 1.5% 31.00 $ 61.90 $ 92.70 $ 1.5% 61.90 $ 46.40 $ 77.20 $ 1.5% 46.40 $ 52.10 $ 79.00 $ 0.32 $ + 3.2% 52.10 $ 92.70 $ 123.50 $ 0.46 $ + 3.2% 92.70 $ 77.20 $ 108.00 $ 0.46 $ + 3.2% 77.20 $ 79.00 $ 94.40 $ 1.18 $ + 3.2% 79.00 $ 123.50 $ 158.10 $ 1.45 $ + 3.2% 123.50 $ 108.00 $ 142.60 $ 1.45 $ + 3.2% 108.00 $ 94.40 $ 129.00 $ 1.67 $ + 4.3% 94.40 $ 158.10 $ 219.60 $ 2.55 $ + 4.3% 158.10 $ 142.60 $ 204.10 $ 2.55 $ + 4.3% 142.60 $ 129.00 $ 159.80 $ 3.16 $ + 4.3% 129.00 $ 219.60 $ 254.20 $ 5.20 $ + 4.3% 219.60 $ 204.10 $ 238.80 $ 5.20 $ + 4.3% 204.10 $ 159.80 $ 225.20 $ 4.48 $ + 4.7% 159.80 $ 254.20 $ 392.70 $ 6.69 $ + 4.7% 254.20 $ 238.80 $ 377.20 $ 6.69 $ + 4.7% 238.80 $ 225.20 $ 286.70 $ 7.56 $ + 4.7% 225.20 $ 392.70 $ 446.50 $ 13.20 $ + 4.7% 392.70 $ 377.20 $ 431.10 $ 13.20 $ + 4.7% 377.20 $ 286.70 $ 838.70 $ 10.45 $ + 4.9% 286.70 $ 446.50 $ 1,273.50 $ 15.73 $ + 4.9% 446.50 $ 431.10 $ 1,258.00 $ 15.73 $ + 4.9% 431.10 $ 838.70 $ and over 37.49 $ + 5.9% 838.70 $ 1,273.50 $ and over 56.25 $ + 5.9% 1,273.50 $ 1,258.00 $ and over 56.25 $ + 5.9% 1,258.00 $ Table 7 - If the Payroll Period with Respect to an Employee is ANNUAL Table 8 - If the Payroll Period with Respect to an Employee is DAILY or MISCELLANEOUS New Mexico State Wage Withholding Tax Tables for Percentage Method of Withholding (For wages paid on or after January 1, 2026) FYI-104 Rev. 11/2025 Page 8

New Mexico Taxation and Revenue Department

FYI-104  REV. 11/2025  page 9 TAXPAYER INFORMATION

General Information. FYIs and Bulletins present general information with minimum technical language. All FYIs and Bulletins are free of charge and available through all local tax offices and on the Taxation and Revenue Department’s website at https://www.tax.newmexico.gov/forms-publications/.

Regulations. The Department establishes regulations to interpret and exemplify the various tax acts it administers. Current statutes with regulations can be located on the Departments website for free at https://www.tax.newmexico.gov/all-nm-taxes/statutes-with-regulations/. Specific regulations are also available at the State Records Center and Archives or on its web page at https://www.srca.nm.gov/.

The Taxation and Revenue Department regulation book is available for purchase from the New Mexico Compilation Commission. Order regulation books directly from the New Mexico Compilation Commission at https://www.nmcompcomm.us/.

Rulings. Rulings signed by the Secretary and approved by the Attorney General are written statements that apply to one or a small number of taxpayers. A taxpayer may request a ruling (at no charge) to clarify its tax liability or responsibility under specific circumstances. The Department will not issue a ruling to a taxpayer who is undergoing an audit, who has an outstanding assessment, or who is involved in a protest or litigation with the Department over the subject matter of the request. The Department’s rulings are compiled and available on free of charge at https://www.tax.newmexico.gov/all-nm-taxes/rulings/.

The request for a ruling must be in writing, include accurate taxpayer identification and the details about the taxpayer’s situation, and be addressed to the Secretary of the Taxation and Revenue Department at P.O. Box 630, Santa Fe, NM 87504-0630. The taxpayer’s representative, such as an accountant or attorney, may request a ruling on behalf of the taxpayer but must disclose the name of the taxpayer. While the Department is not required to issue a ruling when requested to do so, every request is carefully considered.

The Secretary may modify or withdraw any previously issued ruling and is required to withdraw or modify any ruling when subsequent legislation, regulations, final court decisions or other rulings invalidate a ruling or portions of a ruling.

Public Decisions & Orders. All public decisions and orders issued since July 1994 are compiled and available on the Department’s web page free of charge at https://www.tax.newmexico.gov/all-nm- taxes/tax-decisions-orders/.

This publication provides general information. It does not constitute a regulation, ruling, or decision issued by the Secretary of the New Mexico Taxation and Revenue Department. The Department is legally bound only by a regulation or a ruling [7-1-60, New Mexico Statutes Annotated, 1978]. In the event of a conflict between FYI and statute, regulation, case law or policy, the information in FYIs is overridden by statutes, regulations and case law. Taxpayers and preparers are responsible for being aware of New Mexico tax laws and rules. Consult the Department directly if you have questions or concerns about information provided in this FYI.

New Mexico Taxation and Revenue Department

FYI-104  REV. 11/2025  page 10 FOR FURTHER ASSISTANCE

Tax District Field Offices and the Department’s call center can provide full service and general information about the Department's taxes, taxpayer access point, programs, classes, and forms. Information specific to your filing situation, payment plans and delinquent accounts.

TAX DISTRICT FIELD OFFICES

ALBUQUERQUE 10500 Copper Ave. NE, Suite C Albuquerque, NM 87123

SANTA FE Manuel Lujan Senior Building 1200 S. Saint. Francis Dr. Santa Fe, NM 87505

FARMINGTON 3501 E. Main St., Ste N Farmington, NM 87402

LAS CRUCES 2540 El Paseo Bldg. 2 Las Cruces, NM 88001

ROSWELL 400 N. Pennsylvania Ave., Ste 200 Roswell, NM 88201

For forms and instructions visit the Department’s web site at https://www.tax.newmexico.gov/.

Call Center Number: 1-866-285-2996

If faxing something to a tax district field office, please fax to:

Call Center Fax Number: 1-505-841-6327

If mailing information to a tax district field office, please mail to:

Taxation and Revenue Department P.O. Box 50130 Albuquerque, NM 87181-0130

For additional contact information please visit the Department’s website at https://www.tax.newmexico.gov/contact-us/.

This information is as accurate as possible as of the date specified on the publication. Subsequent legislation, new state regulations and case law may affect its accuracy. For the latest information please check the Taxation and Revenue Department’s web site at www.tax.newmexico.gov.