Editing New Mexico (section)

====Taxation====

{{Main|Taxation in New Mexico}}

New Mexico is one of the largest [[tax haven]]s in the U.S., offering numerous economic incentives and [[tax break]]s on [[Personal income in the United States|personal]] and [[Corporate tax in the United States|corporate income]].<ref>{{cite magazine|last=Sohm|first=Joe|date=May 4, 2012|title=Top 10 US Tax Haven States|magazine=SBC Magazine|url=https://www.sbcmag.info/news/2012/may/top-10-us-tax-haven-states|url-status=dead|archive-url=https://web.archive.org/web/20180421094851/https://www.sbcmag.info/news/2012/may/top-10-us-tax-haven-states|archive-date=April 21, 2018|access-date=April 21, 2018}}</ref><ref>{{cite web|last=English|first=Michael|date=September 18, 2015|title=New Mexico touted as tax-friendly state in latest ranking|url=https://www.bizjournals.com/albuquerque/blog/morning-edition/2015/09/new-mexico-touted-as-tax-friendly-state-in-latest.html|access-date=April 21, 2018|website=Albuquerque Business First|archive-date=December 3, 2020|archive-url=https://web.archive.org/web/20201203142445/https://www.bizjournals.com/albuquerque/blog/morning-edition/2015/09/new-mexico-touted-as-tax-friendly-state-in-latest.html|url-status=live}}</ref> It does not levy taxes on [[inheritance tax|inheritance]], [[Estate tax in the United States|estate]], or [[sales tax|sal]]es.<ref name="Bell-2016">{{Cite news|last=Bell|first=Kay|title=State taxes: New Mexico|work=Bankrate|url=https://www.bankrate.com/finance/taxes/state-taxes-new-mexico.aspx|url-status=live|access-date=April 21, 2018|archive-url=https://web.archive.org/web/20180422062839/https://www.bankrate.com/finance/taxes/state-taxes-new-mexico.aspx|archive-date=April 22, 2018}}</ref><ref>{{cite web|title=New Mexico Retirement Tax Friendliness |url=https://smartasset.com/retirement/new-mexico-retirement-taxes|url-status=live|archive-url=https://web.archive.org/web/20180621093353/https://smartasset.com/retirement/new-mexico-retirement-taxes|archive-date=June 21, 2018|access-date=April 21, 2018|website=SmartAsset}}</ref> Personal [[income tax]] rates range from 1.7% to 5.9% within five income brackets;<ref>{{Cite web|last=Loughead|first=Katherine|title=State Individual Income Tax Rates and Brackets|url=https://taxfoundation.org/publications/state-individual-income-tax-rates-and-brackets/|access-date=2021-08-05|website=Tax Foundation|language=en-US|archive-date=January 18, 2022|archive-url=https://web.archive.org/web/20220118042724/https://taxfoundation.org/publications/state-individual-income-tax-rates-and-brackets/|url-status=live}}</ref> the top marginal rate was increased from 4.9% in 2021 per a 2019 law.<ref>{{Cite web|last=Loughead|first=Katherine|date=January 5, 2021|title=State Tax Changes Effective January 1, 2021|url=https://taxfoundation.org/2021-state-tax-changes/|access-date=2021-08-05|website=Tax Foundation|language=en-US|archive-date=August 3, 2021|archive-url=https://web.archive.org/web/20210803214729/https://taxfoundation.org/2021-state-tax-changes/|url-status=live}}</ref> [[Active duty|Active-duty military]] salaries are exempt from state income tax, as is income earned by Native American members of federally recognized tribes on tribal land.<ref>{{Cite web|title=Wage Withholding Taxes|url=https://www.tax.newmexico.gov/governments/wage-withholding-taxes/|access-date=2021-08-05|website=Governments|language=en-US|archive-date=August 5, 2021|archive-url=https://web.archive.org/web/20210805224232/https://www.tax.newmexico.gov/governments/wage-withholding-taxes/|url-status=live}}</ref>

New Mexico imposes a [[Gross Receipts Tax]] (GRT) on many transactions, which may even include some governmental receipts. This resembles a [[sales tax]] but, unlike the sales taxes in many states, it applies to services as well as tangible goods. Normally, the provider or seller passes the tax on to the purchaser; however, legal incidence and burden apply to the business, as an [[excise tax]]. GRT is imposed by [[New Mexico Taxation and Revenue Department|the state]] and by some counties and municipalities.<ref>{{cite web |url=http://www.tax.state.nm.us/oos/GrossReceiptsTaxFAQ.pdf |title=Gross Receipts Taxes FAQ |access-date=October 9, 2008 |publisher=State of New Mexico, Taxation and Revenue Department |date=August 6, 2006 |archive-url=https://web.archive.org/web/20070331014708/http://www.tax.state.nm.us/oos/GrossReceiptsTaxFAQ.pdf |archive-date=March 31, 2007 |url-status=dead }}</ref> As of 2021, the combined tax rate ranged from 5.125% to 9.063%.<ref>[http://www.tax.newmexico.gov/Forms-and-Publications/Forms/Gross-Receipts/Pages/Home.aspx#Rates.aspx] {{webarchive|url=https://web.archive.org/web/20131024210432/http://www.tax.newmexico.gov/Forms-and-Publications/Forms/Gross-Receipts/Pages/Home.aspx#Rates.aspx|date=October 24, 2013}}</ref>

[[Property tax]] is imposed on [[real property]] by the state, by counties, and by school districts. In general, personal use [[personal property]] is not subject to property taxation. On the other hand, property tax is levied on most business-use personal property. The taxable value of property is one-third the assessed value. A tax rate of about 30 [[mill (currency)|mills]] is applied to the taxable value, resulting in an effective tax rate of about 1%. In the 2005 tax year, the average millage was about 26.47 for residential property, and 29.80 for non-residential property. Assessed values of residences cannot be increased by more than 3% per year unless the residence is remodeled or sold. Property tax deductions are available for military veterans and heads of household.<ref>{{cite web |url=http://www.tax.state.nm.us/oos/PropertyTaxFAQ.pdf |title=Property Tax FAQ |access-date=October 9, 2008 |publisher=State of New Mexico, Taxation and Revenue Department |date=August 7, 2007 |archive-url=https://web.archive.org/web/20070331014658/http://www.tax.state.nm.us/oos/PropertyTaxFAQ.pdf |archive-date=March 31, 2007 |url-status=dead }}</ref>

A 2021 analysis by the nonprofit Tax Foundation placed New Mexico 23rd in business tax climate; its property taxes were found to be the least burdensome in the U.S., while taxation for unemployment insurance and on corporations each ranked as the ninth least burdensome.<ref>{{Cite web|title=New Mexico Tax Rates & Rankings {{!}} NM State Taxes|url=https://taxfoundation.org/state/new-mexico/|access-date=2021-07-26|website=Tax Foundation|language=en-US|archive-date=July 26, 2021|archive-url=https://web.archive.org/web/20210726175331/https://taxfoundation.org/state/new-mexico/|url-status=live}}</ref>