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Is New Mexico a high tax state?

New Mexico is among the tax-friendly states of the U.S., offering numerous economic incentives and tax breaks on personal and corporate income. It does not have inheritance tax, estate tax or franchise taxes.

What states have no state income tax?

Nine states Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming have no income taxes. New Hampshire, however, taxes interest and dividends, ing to the Tax Foundation. It has passed legislation to begin phasing out that tax starting in 2024 and ending in 2027.

Is New Mexico a tax friendly state for retirees?

New Mexico is a moderately tax-friendly state for retirees. The state recently enacted a law that exempts social security from taxation up to $100,000 for individuals or $150,000 for couples. This exemption became effective in 2022.

Does New Mexico tax Social Security and pensions?

Beginning with tax year 2022, most seniors will be exempt from paying taxes on their Social Security benefits when they file their New Mexico Personal Income Tax returns.

Does New Mexico have a state income tax?

New Mexico imposes a tax on the net income of every resident and on the net income of every nonresident employed or engaged in business in, into or from this state or deriving any income from any property or employment within this state. The personal income tax is filed using Form PIT-1.

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