NM Tax and Revenue: A Comprehensive Guide
Greetings, Readers!
Welcome to our extensive guide on New Mexico’s tax and revenue system. New Mexico’s Tax and Revenue Department (TRD) is responsible for collecting taxes and administering various revenue-generating programs for the state. In this article, we will delve into the ins and outs of NM tax and revenue, covering everything from income taxes to property taxes.
Income Taxes
State Income Tax
New Mexico levies a personal income tax on individuals residing or working within the state. The tax is calculated as a percentage of taxable income, with rates ranging from 1.7% to 4.9%. The state offers various deductions and credits to reduce taxpayers’ liability.
Business Income Tax
Businesses operating in New Mexico are subject to a gross receipts tax (GRT) on their sales and services. The GRT rate is currently set at 5.5%, and businesses may deduct certain expenses from their taxable gross receipts.
Property Taxes
Ad Valorem Property Tax
New Mexico counties assess and collect ad valorem property taxes on real and personal property within their jurisdiction. Property taxes are based on the assessed value of the property, and rates vary by county.
Property Tax Exemptions
Certain types of property, such as owner-occupied homes, are eligible for property tax exemptions. Homeowners may also qualify for a property tax refund if they meet certain income requirements.
Sales and Use Taxes
Gross Receipts Tax (GRT)
The GRT, mentioned earlier in the business income tax section, also applies to retail sales and services. Consumers pay the GRT when they purchase taxable items, and businesses collect and remit the tax to the state.
Use Tax
Residents who purchase taxable items from out-of-state vendors without paying GRT are required to file a use tax return and pay the applicable tax to the TRD.
Table: NM Tax and Revenue Breakdown
| Tax Type | Rate | Description |
|---|---|---|
| Personal Income Tax | 1.7% – 4.9% | Tax on taxable income |
| Business Income Tax (GRT) | 5.5% | Tax on gross receipts |
| Ad Valorem Property Tax | Varies by county | Tax on assessed property value |
| Gross Receipts Tax (GRT) | 5.5% | Tax on retail sales and services |
| Use Tax | Varies by item | Tax on out-of-state purchases |
Conclusion
This comprehensive guide provides an overview of NM tax and revenue. For more information, visit the Tax and Revenue Department’s website or consult with a qualified tax professional. Don’t forget to check out our other articles on tax-related topics for further insights and guidance.
FAQ about NM Tax and Revenue
How do I file my state taxes?
You can file your New Mexico state taxes online, by mail, or through a tax professional.
When is the deadline to file my state taxes?
The deadline to file your New Mexico state taxes is April 15th.
What are the different types of taxes I have to pay in New Mexico?
The different types of taxes you have to pay in New Mexico include income tax, gross receipts tax, property tax, and motor vehicle excise tax.
What is the income tax rate in New Mexico?
The income tax rate in New Mexico is graduated, ranging from 1.7% to 4.9%.
Do I have to pay property tax in New Mexico?
Yes, you have to pay property tax in New Mexico if you own property.
What is the motor vehicle excise tax rate in New Mexico?
The motor vehicle excise tax rate in New Mexico is 3%.
How do I get a refund for my state taxes?
If you are due a refund for your state taxes, you can receive it by direct deposit or check.
What if I owe money on my state taxes?
If you owe money on your state taxes, you can pay it online, by mail, or through a tax professional.
How can I contact the New Mexico Taxation and Revenue Department?
You can contact the New Mexico Taxation and Revenue Department by phone, email, or mail.
Where can I find more information about NM tax and revenue?
You can find more information about NM tax and revenue on the website of the New Mexico Taxation and Revenue Department.
