What are the income tax rates in New Mexico?

The income tax rates in New Mexico vary depending on an individual's taxable income bracket. For the tax year 2021, New Mexico follows a progressive income tax system with four tax brackets. The rates range from 1.7% to a maximum of 5.9%. Individuals with a taxable income below $5,500 are subject to the lowest tax rate of 1.7%. The tax rate gradually increases to 3.2% for income between $5,501 and $11,000, 4.7% for income between $11,001 and $16,000, and finally, 5.9% for income above $16,000. It's important to note that these rates only apply to New Mexico state income taxes and do not encompass federal taxes or local taxes, if applicable.