NEW MEXICO ECONOMIC
DEVELOPMENT DEPARTMENT

Competitive Business Climate

Improvements to New Mexico’s tax climate have been recognized by Kiplinger, Ernst & Young, and the Tax Foundation.  The state recently phased down its maximum corporate income tax rate to 5.9% and enacted a single sales factor apportionment methodology for manufacturers.

A comparison of regional states from the 2020 State Business Tax Climate, published by the Tax Foundation, is shown below.

Overall State Business Climate Ranking Maximum CIT Rate Maximum PIT Rate
New Mexico
22
5.9%
4.9%
Arizona
20
4.9%
4.54%
California
48
8.84%
13.3%
Colorado
17
4.63%
4.63%
Oklahoma
27
6%
5%
Nevada
7
None
None
Texas
13
None
None
Utah
9
4.95%
4.95%
State Sales Tax Rate Property Tax - Collections Per Capita
New Mexico
5.125%
$768
Arizona
5.6%
$1,062
California
7.25%
$1,559
Colorado
2.9%
$1,425
Oklahoma
4.5%
$699
Nevada
6.85%
$994
Texas
6.25%
$1,762
Utah
6.1%
$1,019
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