Which is the tax of new mexico, usa?

Question

Please tell me which is the tax in new mexico. Thanks...

Answer 1

New Mexico collects a state income tax across four brackets ranging from 1.7 percent to a top rate of 5.3 percent.

Sales tax

  New Mexico does not have a sales tax. Instead, it has a 5 percent gross receipts tax. In almost every case, the business passes along the tax to the consumer, so that the gross receipts tax resembles a sales tax.

The combined gross receipts tax rate varies throughout the state from 5.125 percent to 8 percent. The total rate is a combination of all rates imposed by the state, counties and municipalities.

Beginning Jan. 1, 2005, New Mexicans no longer pay taxes on most food purchases. However, there are exceptions to this new program.

Also beginning Jan. 1, 2005, the state eliminated the tax on certain medical services.

In general, taxes are not assessed on personal property. Personal household effects, licensed vehicles, registered aircraft, certain personal property warehoused in the state and business personal property that is not depreciated for federal income tax purposes are exempt from the property tax.

Property tax rates vary substantially and depend on the type of property and its location.

New Mexico assesses residences at market value. Assessors usually determine market value by the sales-comparison approach, which matches a property's value to that of similar properties.

Residents age 65 or older as of the first of the year and who had total modified household income in the previous year of no more than $21,000 may be eligible for a valuation limitation. This means the current assessed value of your property cannot be raised as long as you qualify for the limitation. You must file an application each year to qualify.

Several other property tax exemptions also are available to qualified New Mexico residents. Any claims must be applied for no later than the last day of February of the tax year in which the exemption is to apply. Details on the exemptions and links forms can be found on the state taxation and revenue Web site.

New Mexico has no inheritance tax, but an inheritance may be reflected in a taxpayer's modified gross income and taxed that way.

  Due to the phaseout of the state credit on federal estate taxes, New Mexico does not impose an estate tax on decedents dying after Jan. 1, 2005.