NEW MEXICO (KRQE) – The deadline to file income taxes is fast approaching. And while you’re stuck with paying tax rates set in the state, you might be wondering: How does New Mexico compare to other states?
A recent WalletHub study has answers. They compared each state’s ‘tax burden’ to rank the proportion of total personal income residents pay towards state and local taxes. And it turns out, New Mexico ranks relatively high.
New York, Hawaii, and Maine occupy the top three spots. New York residents pay around 12.5% of their total income towards state and local tax, WalletHub reports. That includes about 4.4% to property taxes, 4.7% to income tax, and over 3% to sales and excise taxes.
New Mexico ranks at the 14th highest tax burden, according to WalletHub. Residents pay around 8.8% of their total personal income to state and local taxes.
New Mexico’s ranking reflects a relatively high proportion of income paid to excise taxes and taxes on purchases. On the other hand, New Mexico’s income taxes and property taxes rank particularly low.
But, New Mexico’s taxes are likely to change, thanks to an omnibus tax bill passed during the 2023 legislative session. If signed into law by Governor Michelle Lujan Grisham, many of New Mexico’s residents could see even lower income taxes.
