SENATE BILL 89
55th legislature - STATE OF NEW MEXICO - first session, 2021
INTRODUCED BY
Bill Tallman
AN ACT
RELATING TO TAXATION; AMENDING THE PERSONAL INCOME TAX BRACKETS; REPEALING AN OUTDATED SECTION OF THE NMSA 1978.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-2-7 NMSA 1978 (being Laws 2005, Chapter 104, Section 4) is repealed and a new Section 7-2-7 NMSA 1978 is enacted to read:
"7-2-7. [NEW MATERIAL] INDIVIDUAL INCOME TAX RATES.--
A. The tax imposed by Section 7-2-3 NMSA 1978 shall be at the rates provided in Subsections B through D of this section for any taxable year beginning on or after January 1, 2022.
B. For married individuals filing separate returns:
If the taxable income is: The tax shall be:
Not over $5,000 1.7% of taxable income
Over $5,000 but not over $7,500 $85.00 plus 3.2% of excess over $5,000
Over $7,500 but not over $17,500 $165 plus 4.7% of excess over $7,500
Over $17,500 but not over $37,500 $635 plus 5.2% of excess over $17,500
Over $37,500 but not over $75,000 $1,675 plus 5.5% of excess over $37,500
Over $75,000 but not over $150,000 $3,737.50 plus 5.8% of excess over $75,000
Over $150,000 $8,087.50 plus 6.5% of excess over $150,000.
C. For heads of household, surviving spouses and married individuals filing joint returns:
If the taxable income is: The tax shall be:
Not over $10,000 1.7% of taxable income
Over $10,000 but not over $15,000 $170 plus 3.2% of excess over $10,000
Over $15,000 but not over $35,000 $330 plus 4.7% of excess over $15,000
Over $35,000 but not over $75,000 $1,270 plus 5.2% of excess over $35,000
Over $75,000 but not over $150,000 $3,350 plus 5.5% of excess over $75,000
Over $150,000 but not over $300,000 $7,475 plus 5.8% of excess over $150,000
Over $300,000 $16,175 plus 6.5% of excess over $300,000.
D. For single individuals and for estates and trusts:
If the taxable income is: The tax shall be:
Not over $6,500 1.7% of taxable income
Over $6,500 but not over $10,000 $110.50 plus 3.2% of excess over $6,500
Over $10,000 but not over $23,500 $222.50 plus 4.7% of excess over $10,000
Over $23,500 but not over $50,000 $857 plus 5.2% of excess over $23,500
Over $50,000 but not over $100,000 $2,235 plus 5.5% of excess over $50,000
Over $100,000 but not over $200,000 $4,985 plus 5.8% of excess over $100,000
Over $200,000 $10,785 plus 6.5% of excess over $200,000.
E. The tax on the sum of any lump-sum amounts included in net income is an amount equal to five multiplied by the difference between:
(1) the amount of tax due on the taxpayer's taxable income; and
(2) the amount of tax that would be due on an amount equal to the taxpayer's taxable income and twenty percent of the taxpayer's lump-sum amounts included in net income."
SECTION 2. REPEAL.--That version of Section 7-2-7 NMSA 1978 (being Laws 2005 (1st S.S.), Chapter 3, Section 2) is repealed.
SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of Section 1 of this act is January 1, 2022.
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