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 |
New Mexico Economic
Development Department
Joseph M. Montoya Building
1100 S. St. Francis Drive
Santa Fe, NM 87505-4147
Mailing Address:
New Mexico Economic
Development Department
P.O. Box 20003
Santa Fe, NM 87504-5003
Main number: (505) 827-0300 (se habla español)
Fax: (505) 827-0328
The mission of the New Mexico Economic Development Department is to Improve the lives of New Mexico families by increasing economic opportunities and providing a place for businesses to thrive.
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