2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-5.8 - Exemption for low- and middle-income taxpayers.

A. An individual may claim an exemption in an amount specified in Subsections B through D of this section not to exceed an amount equal to the number of federal exemptions multiplied by two thousand five hundred dollars ($2,500) of income includable, except for this exemption, in net income.
B. For a married individual filing a separate return with adjusted gross income up to twenty-seven thousand five hundred dollars ($27,500):
(1) if the adjusted gross income is not over fifteen thousand dollars ($15,000), the amount of the exemption pursuant to this section shall be two thousand five hundred dollars ($2,500) for each federal exemption; and
(2) if the adjusted gross income is over fifteen thousand dollars ($15,000) but not over twenty-seven thousand five hundred dollars ($27,500), the amount of the exemption pursuant to this section for each federal exemption shall be calculated as follows:
(a) two thousand five hundred dollars ($2,500); less
(b) twenty percent of the amount obtained by subtracting fifteen thousand dollars ($15,000) from the adjusted gross income.
C. For single individuals with adjusted gross income up to thirty-six thousand six hundred sixty-seven dollars ($36,667):
(1) if the adjusted gross income is not over twenty thousand dollars ($20,000), the amount of the exemption pursuant to this section shall be two thousand five hundred dollars ($2,500) for each federal exemption; and
(2) if the adjusted gross income is over twenty thousand dollars ($20,000) but not over thirty-six thousand six hundred sixty-seven dollars ($36,667), the amount of the exemption pursuant to this section for each federal exemption shall be calculated as follows:
(a) two thousand five hundred dollars ($2,500); less
(b) fifteen percent of the amount obtained by subtracting twenty thousand dollars ($20,000) from the adjusted gross income.
D. For married individuals filing joint returns, surviving spouses or for heads of households with adjusted gross income up to fifty-five thousand dollars ($55,000):
(1) if the adjusted gross income is not over thirty thousand dollars ($30,000), the amount of the exemption pursuant to this section shall be two thousand five hundred dollars ($2,500) for each federal exemption; and
(2) if the adjusted gross income is over thirty thousand dollars ($30,000) but not over fifty-five thousand dollars ($55,000), the amount of the exemption pursuant to this section for each federal exemption shall be calculated as follows:
(a) two thousand five hundred dollars ($2,500); less
(b) ten percent of the amount obtained by subtracting thirty thousand dollars ($30,000) from the adjusted gross income.
History:
Laws 2005, ch. 104, § 5; 2007, ch. 45, § 8.
ANNOTATIONS
The 2007 amendment,
effective June 15, 2007, in Subsection A, deleted the provision that individuals who have income in and out of the state shall apportion the exemption in accordance with regulations of the secretary; in Subsection B, changed $20,333 to $27,500; in Paragraph (1) of Subsection B, changed $12,000 to $15,000; in Paragraph (2) of Subsection B, changed the minimum from $12,000 to $15,000 and the maximum from $20,333 to $27,500; in Subparagraph (b) of Paragraph (2) of Subsection B, changed $12,000 to $15,000; in Subsection C, changed $27,110 to $36,667; in Paragraph (1) of Subsection C, changed $16,000 to $20,000 and in Paragraph (2) of Subsection C, changed the maximum from $27,110 to $36,667; in Subparagraph (b) of Paragraph (2) of Subsection C, changed $16,000 to $20,000; in Subsection D, changed $40,667 to $55,000; in Paragraph (1) of Subsection D, changed $24,000 to $30,000; in Paragraph (2) of Subsection D, changed the minimum from $24,000 to $30,000 and the maximum from $40,667 to $55,000; in Subparagraph (b) of Paragraph (2) of Subsection D, changed $24,000 to $30,000; and deleted former Subsection E, which defined "federal exemption" as an exemption allowable for federal income tax purposes for an individual included in the return who is domiciled in New Mexico.
Applicability.
— Laws 2007, ch. 45, § 15 provided that Laws 2007, ch. 45, § 8 applied to taxable years beginning on or after January 1, 2007.