SANTA FE, N.M. (KRQE) – A state lawmaker is looking to change up New Mexico’s personal income tax brackets. This means certain households in the state could have to pay more taxes. The bill’s sponsor says slightly increasing rates in one way to bring in an additional $100 million to the state. “It wouldn’t impact lower-income folks, only a moderate increase for middle income and the top bracket would only go up from 5.9 to 6.5,” said the bill’s sponsor Senator Bill Tallman (D-Bernalillo County).
Senate Bill 89 would add a couple of extra tax brackets as well as increasing the percentage of taxable income for people earning the most. For the 2022 taxable year, married couples filing jointly with a taxable income of $500,000, would pay almost $30,000, a few thousand more than what they’re paying now.
The bill’s sponsor says that adding additional tax brackets makes it fairer with the tax rate increments. The sponsor says he knows people don’t want to pay more in taxes but says our state’s economy needs the money. “We need to start now to offset to get off the roller coaster of oil and gas volatility,” said Sen. Tallman.
Sen. Tallman adds that even with these tax rate increases, they are well below the previous rates in the early 2000s. The bill is scheduled to be heard Tuesday in the Senate, Tax, Business and Transportation Committee. State statistics say only 4% of the state’s households earn more than $200,000 a year.