New Mexico did not introduce many changes for the 2025 tax year, just minor adjustments to deductions.
What's new with New Mexico's Deductions?
Standard Deduction
New Mexico's standard deduction follows federal guidelines, so the amounts for 2025 are:
- Single: $15,750
- Married Filing Jointly: $31,500
- Married Filing Separately: $15,750
- Head of Household: $23,625
Capital Gains Deduction
Starting in 2025, New Mexico's capital gains deduction changes to the greater of $2,500 or 40% of up to $1 million in capital gains from selling a New Mexico business, up from $1,000 or 40% of net capital gains.