Chapter 7 — Chapter 7

History: Laws 2013, ch. 49, § 2; 2023, ch. 45, § 1; repealed by Laws 2025, ch. 130, § 155.

History: Laws 2015, ch. 50, § 1; repealed by Laws 2025, ch. 130, § 155.

History: Laws 2015, ch. 82, § 1; repealed by Laws 2025, ch. 130, § 155.

History: Laws 1992, ch. 108, § 1; repealed by Laws 2025, ch. 130, § 155.

repeal. A. By August 31 of each year, the secretary shall determine the total amount contributed through the preceding July 31 on returns filed for taxable years ending in the preceding calendar year pursuant to each purpose stated in Section 7-2-24 NMSA 1978. B. If the secretary…

A taxpayer may claim a deduction from net income in an amount equal to the payments made by the taxpayer into the education trust fund pursuant to an education investment agreement or prepaid tuition contract under the Education Trust Act [Chapter 21, Article 21K NMSA 1978] in th…

ANNOTATIONS Repeals. — Laws 2003, ch. 275, § 6 repealed 7-2-33 NMSA 1978, as enacted by Laws 1997, ch. 259, § 9, relating to education trust fund; earnings tax exempt; withdrawals are taxable income; authority to withhold tax, effective June 20, 2003. For provisions of former sec…

A. A taxpayer may claim a deduction from net income in an amount equal to the greater of: (1) the taxpayer's net capital gain income for the taxable year for which the deduction is being claimed, but not to exceed two thousand five hundred dollars ($2,500); or (2) forty percent o…

History: Laws 2000 (2nd S.S.), ch. 7, § 1.

A. A taxpayer may claim a deduction from net income in an amount not to exceed ten thousand dollars ($10,000) of organ donation-related expenses, including lost wages, lodging expenses and travel expenses, incurred during the taxable year by the taxpayer or the taxpayer's depende…

expenses. A. Prior to January 1, 2025, a taxpayer may claim a deduction from net income in an amount determined pursuant to Subsection B of this section for medical care expenses paid during the taxable year for medical care of the taxpayer, the taxpayer's spouse or a dependent i…

estate or trust to a nonresident individual. A. Before January 1, 2025, a taxpayer that is an estate or trust may claim a deduction from net income in the amount equal to income, excluding income derived from real property located in New Mexico, mineral, oil and gas interests loc…

A. As long as the exemption amount pursuant to Section 151 of the Internal Revenue Code means zero, a taxpayer who is not a dependent of another individual and files a return as a head of household or married filing jointly may claim a deduction from net income in an amount equal…

No income tax shall be imposed upon: A. a trust organized or created in the United States and forming part of a stock bonus, pension or profit-sharing plan of an employer for the exclusive benefit of his employees or their beneficiaries, which trust is exempt from taxation under …

A. Prior to January 1, 2026, a taxpayer who is a liquor license lessor and who held the license on June 30, 2021 may claim a deduction from net income in an amount equal to the gross receipts from sales of alcoholic beverages made by each liquor license lessee in an amount, if th…

teacher. A. A taxpayer who is not a dependent of another individual and is a public school teacher may claim a deduction from net income in an amount equal to the costs of school supplies purchased by the public school teacher in a taxable year, not to exceed: (1) for a taxable y…

ANNOTATIONS Repeals. — Laws 1990, ch. 49, § 18 repealed 7-2-5 NMSA 1978, as enacted by Laws 1967, ch. 70, § 1, relating to exemptions for annuities to retired federal civil service employees, effective May 16, 1990. For provisions of former section, see the 1989 NMSA 1978 on NMOn…

ANNOTATIONS Repeals. — Laws 1990, ch. 49, § 18 repealed 7-2-5.1 NMSA 1978, as enacted by Laws 1979, ch. 342, § 1, relating to exemptions for military retirement pay, effective May 16, 1990. For provisions of former section, see the 1989 NMSA 1978 on NMOneSource.com.

paid for group life insurance. An individual who receives reimbursement from the service members' life insurance reimbursement fund may claim an exemption in the amount of that reimbursement, from income includable, except for this exemption, in net income. History: Laws 2006, ch…

A salary paid by the United States to a taxpayer for active duty service in the armed forces of the United States is exempt from state income taxation. History: Laws 2007, ch. 45, § 11.

History: Laws 2022, ch. 46, § 1; repealed by Laws 2023, ch. 159, § 4.

A. An individual who is an armed forces retiree or the surviving spouse of an armed forces retiree may claim an exemption in an amount equal to thirty thousand dollars ($30,000) of armed forces retirement pay includable, except for this exemption, in net income. B. As used in thi…

An individual may claim an exemption in an amount equal to the amount included in adjusted gross income pursuant to Section 86 of the Internal Revenue Code, as that section may be amended or renumbered, of income includable except for this exemption in net income; provided that t…

Any individual sixty-five years of age or older or who, for federal income tax purposes, is blind may claim an exemption in an amount specified in Subsections A through C of this section not to exceed eight thousand dollars ($8,000) of income includable except for this exemption …

ANNOTATIONS Repeals. — Laws 1990, ch. 49, § 18 repealed 7-2-5.3 NMSA 1978, as amended by Laws 1987, ch. 277, § 2, relating to exemption for social security and railroad retirement benefits, effective May 16, 1990. For provisions of former section, see the 1989 NMSA 1978 on NMOneS…

History: 1978 Comp., § 7-2-5.4, enacted by Laws 1988, ch. 59, § 1; 1995, ch. 11, § 1; 2007, ch. 45, § 14.

Indian dependents on Indian lands. Income earned by a member of a New Mexico federally recognized Indian nation, tribe, band or pueblo, the member's spouse or dependent, who is a member of a New Mexico federally recognized Indian nation, tribe, band or pueblo, is exempt from stat…

Except as provided in Section 6 [59A-23D-6 NMSA 1978] of this act, employer and employee contributions to medical care savings accounts established pursuant to the Medical Care Savings Account Act [Chapter 59A, Article 23D NMSA 1978], the interest earned on those accounts and mon…

or older. The income of an individual who is a natural person, who is one hundred years of age or older and who is not a dependent of another individual is exempt from state income tax. History: Laws 2002, ch. 58, § 1.

A. An individual may claim an exemption in an amount specified in Subsections B through D of this section not to exceed an amount equal to the number of federal exemptions multiplied by two thousand five hundred dollars ($2,500) of income includable, except for this exemption, in…

expenses of individuals sixty-five years of age or older. A. Any individual sixty-five years of age or older may claim an additional exemption from income includable, except for this exemption, in net income in an amount equal to three thousand dollars ($3,000) for medical care e…

ANNOTATIONS Repeals. — Laws 1990, ch. 49, § 18 repealed 7-2-6 NMSA 1978, as enacted by Laws 1977, ch. 300, § 1, relating to exemptions for annuities paid to retired judges of the district court, court of appeals judges, and supreme court justices, effective May 16, 1990. For prov…

The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for any taxable year beginning on or after January 1, 2025: A. For married individuals filing joint returns, heads of household and surviving spouses: For taxable income: The tax shall be: Not over $8,000 …

In lieu of the tax rate computations required in Section 7-2-7 NMSA 1978, the secretary may adopt regulations requiring taxpayers to pay taxes in accordance with tax rate tables. The tax tables may be established either by regulation or by instruction but shall be computed substa…

History: Laws 2005 (1st S.S.), ch. 3, § 3; repealed by Laws 2025, ch. 130, § 155.

History: Laws 2005 (1st S.S.), ch. 3, § 4; repealed by Laws 2025, ch. 130, § 155.

A. A resident who is not a dependent of another individual and has received a working families tax credit for which the taxpayer was eligible to claim against the resident's income tax liability for taxable year 2020 may be eligible for a tax rebate of six hundred dollars ($600);…

A. A resident who files an individual New Mexico income tax return for taxable year 2021 by May 31, 2023 and who is not a dependent of another individual is eligible for two tax rebates pursuant to this section; provided that the resident did not receive a relief payment pursuant…

A. A resident who is not a dependent of another individual is eligible for a tax rebate of: (1) five hundred dollars ($500) for heads of household, surviving spouses and married individuals filing joint returns with adjusted gross income of less than one hundred fifty thousand do…

A. A resident who files an individual New Mexico income tax return for taxable year 2021 and who is not a dependent of another individual is eligible for a tax rebate pursuant to this section in the following amounts: (1) one thousand dollars ($1,000) for heads of household, surv…

ANNOTATIONS Repeals. — Laws 1981, ch. 37, § 96, repealed 7-2-8 NMSA 1978, as enacted by Laws 1965, ch. 202, § 6, relating to corporate income tax rates, effective June 19, 1981.

For those taxpayers who do not compute an amount upon which the federal income tax is calculated or who do not compute their federal income tax payable for the taxable year, the secretary shall prescribe such regulations or instructions as the secretary may deem necessary to enab…

Chapter 7, Article 2A NMSA 1978 may be cited as the "Corporate Income and Franchise Tax Act". History: 1978 Comp., § 7-2A-1, enacted by Laws 1981, ch. 37, § 34; 1986, ch. 20, § 32.

A. Pursuant to regulation, the secretary may require any person doing business in this state and making payments in the course of business to another person to file information returns with the department. B. The provisions of this section also apply to payments made by the state…

A taxpayer shall use the same accounting methods for reporting income for corporate income tax purposes as are used in reporting income for federal income tax purposes. History: 1978 Comp., § 7-2A-11, enacted by Laws 1981, ch. 37, § 44; 1986, ch. 20, § 49.

Any corporation which files income tax returns under the Internal Revenue Code on the basis of a fiscal year shall report income under the Corporate Income and Franchise Tax Act on the same basis. History: 1978 Comp., § 7-2A-12, enacted by Laws 1981, ch. 37, § 45; 1986, ch. 20, §…

The Corporate Income and Franchise Tax Act shall be administered pursuant to the provisions of the Tax Administration Act [Chapter 7, Article 1 NMSA 1978]. History: 1978 Comp., § 7-2A-13, enacted by Laws 1981, ch. 37, § 46; 1986, ch. 20, § 51.

History: Laws 1983, ch. 218, § 1; 1986, ch. 20, § 52; 1995, ch. 11, § 8; repealed by Laws 2025, ch. 130, § 155.

History: Laws 1994, ch. 115, § 2; repealed by Laws 2023, ch. 85, § 28.

A. With respect to the net income of a taxpayer engaged in the transaction of business occurring after July 1, 1997 from a new business on Indian land, the person who is liable for the payment of the corporate income tax may claim a credit as provided in Subsection D of this sect…