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New Mexico Capital Gains Tax Calculator

New Mexico taxes capital gains as ordinary income. Combined top rate: 29.7%.

Step 1: Your income before the capital gain

Your existing taxable income determines which federal capital gains bracket applies (0%, 15%, or 20%).

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Don't know your taxable income? Calculate it from gross income
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Standard deduction (single): $15,750

Or use the New Mexico Income Tax Calculator for a detailed breakdown.

⚠️ This calculator provides estimates for educational purposes only. It is not financial, tax, or legal advice. Your actual results may vary.

New Mexico Capital Gains Rules

  • Capital gains deduction ($2,500 or 40% for NM business)

    NM allows $2,500 deduction on general gains or 40% deduction on gains from sale of NM business

Frequently Asked Questions

Does New Mexico distinguish between short-term and long-term gains?
No. At the state level, New Mexico taxes both short-term and long-term capital gains as ordinary income. The federal preferential rates (0%/15%/20%) still apply to long-term gains for the federal portion.
How does New Mexico tax capital gains?
New Mexico taxes capital gains as ordinary income using progressive brackets. The top marginal rate is 5.9%, but your effective rate depends on your total taxable income.
What is the combined capital gains tax rate in New Mexico?
The maximum combined rate is 29.7% (federal 20% + NIIT 3.8% + state 5.9%). Most filers pay less because of progressive brackets and the federal 0%/15% rates.

For informational purposes only.