(The Center Square) - New Mexico has a higher top marginal state income tax than its surrounding states.
While New Mexico does not have one of the higher top marginal state income tax rates in the country, it ranks above all of its neighboring states, according to a recent report from the Tax Foundation.
So while New Mexico has the 18th-highest top marginal rate out of the 41 states that tax personal income, its neighbors tax higher income earners at lower rates.
New Mexico's top marginal state income tax rate is 5.9%, which kicks in on dollars exceeding $210,000 annually for individuals and $315,000 for those filing jointly. It is the highest of the five income tax rates in New Mexico's state income tax code.
That is a higher top-income tax rate than by more than an entire point compared to its neighbors.
Three of its neighbors have flat income taxes: Arizona (2.5%), Colorado (4.4%), and Utah (4.85%). Additionally, Texas has no state income tax, and Oklahoma's top marginal rate is 4.75%, according to the report.Although Governor Michelle Lujan Grisham has expressed support for income tax cuts in the state, her plan is unlikely to reduce the state’s top marginal income tax rate. Lujan Grisham is pursuing middle-class tax cuts, according to a release from her office.