Updated: December 23, 2020 09:08 PM
Created: December 22, 2020 06:03 PM
ALBUQUERQUE, N.M.- The state income tax rate is going up for the state's highest earners in 2021.
The New Mexico Taxation and Revenue Department announced Tuesday that individuals who make more than $210,000 and married couples, filing jointly, making more than $315,000 a year will have a 5.9% state income tax rate. The previous tax rate for those individuals and couples was 4.9%.
New Mexico's top 3% of earners will be impacted by the change, according to the state.
“The new top rate restores some of the progressivity that was phased out of our tax code beginning in 2003. Overall, most taxpayers will receive a tax cut because of the tax changes enacted in 2019,” said Taxation and Revenue Department Secretary Stephanie Schardin Clarke.
The state says the 5.9% top rate will apply to affected taxpayers when they file returns in early 2022.
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