If you’re wondering, “How do I figure out how much money I take home in New Mexico” we’ve got you covered.
Use our simple paycheck calculator to estimate your net or “take home” pay after taxes, as an hourly or salaried employee in New Mexico.
Paycheck Calculator
Disclaimer: Please note that this paycheck calculator is designed to provide an estimate and should not be considered as professional tax advice. The actual withholding amounts and taxes owed may vary depending on individual circumstances and other factors. For accurate and personalized tax advice, we recommend consulting with a tax professional.
If your gross pay is 0 per - in the state of F, your net pay (or take home pay) will be $1,343.17 after tax deductions of 0% (or $ 156.83). Deductions include a total of [1] 0% (or $0.00) for the federal income tax, [2] 0% (or $0.00) for the state income tax, [3] 6.20% (or $0.00) for the social security tax and [4] 1.45% (or $0.00) for Medicare.
The Federal Income Tax is collected by the government and is consistent across all U.S. regions. In contrast, the State Income Tax is levied by the state of residence and work, leading to substantial variations. The Social Security Tax is used to fund Social Security, which benefits retirees, persons with disabilities and survivors of deceased workers. Medicare involves a federal payroll tax designated for the Medicare insurance program. As of 2022, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not levy a state income tax.
How Does the Paycheck Calculator Work?
Input your salary information, such as wage and pay frequency, and our tool will handle the tax calculations for you. Once you’ve filled in all the information, click the “Calculate Tax” button, and the calculator will provide an estimate of your net or “take home” pay for the specified pay period.
Overview of New Mexico Taxes
In 2017, New Mexico had a gross domestic product (GDP) of $94.2 billion, per capita personal income of $39,811, ranking 48th nationally.
The state is a big supporter of film production with incentives that have significantly contributed to its economy, bringing in over 85 film projects and $1.2 billion since 2003.
Other key drivers of the state’s economy include oil and gas production, tourism, and federal government spending.
If you decide to start a new job in the “Land of Enchantment”, here’s what to expect tax-wise.
New Mexico employs a progressive income tax system with tax rates ranging from 1.70% to 5.90%, which are among the lowest in the nation, and no local income taxes are imposed by New Mexico cities.
When you start a job in New Mexico, your employer withholds FICA taxes, including a 1.45% Medicare tax and a 6.2% Social Security tax, with employers matching these contributions.
Income exceeding $200,000 is subject to a 0.9% Medicare surtax, unmatched by employers. Your paycheck frequency, such as biweekly or monthly, affects its size.
New Mexico’s taxes are generally favorable due to low-income tax rates and no local income taxes.
Median Household Income in New Mexico
Salary in each state is typically based on the cost of living. While salaries vary widely based on position, the median household income in your state can give you a glimpse at the average salary a household is earning in your region.
| Year | Median Household Income |
|---|---|
| 2021 | $53,992 |
| 2020 | $53,840 |
| 2019 | $51,945 |
| 2018 | $47,169 |
| 2017 | $46,744 |
| 2016 | $46,748 |
| 2015 | $45,382 |
| 2014 | $44,803 |
| 2013 | $43,872 |
| 2012 | $42,558 |
| 2011 | $41,963 |
Starting at $41,963 in 2011, the median household income steadily increased year by year, culminating at $53,992 in 2021.
The most substantial leap in New Mexico’s median household income occurred between 2017 ($46,744) and 2018 ($47,169).
While the increase may appear relatively modest compared to the overall trend, it represents a noteworthy jump in a single year, suggesting potential economic improvements or policy changes during that period.
This upward trajectory in income levels signifies a robust and resilient economy, where households are earning more over time.
Tips for Maximizing Your Paycheck
Here are some tips to help you maximize your paycheck:
- Become familiar with your payroll deductions
- Understand techniques for reducing your tax
- Fully utilize your work-related perks
- Develop a financial plan and define financial goal
- Look into additional income through extra hours or performance incentives
- Regularly check your pay stubs for inaccuracies
For a better understanding, check out our guide on how to keep more out of your paycheck.