The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for any taxable year beginning on or after January 1, 2008:
A. For married individuals filing separate returns:
| If the taxable income is: | The tax shall be: |
| Not over $4,000 | 1.7% of taxable income |
| Over $ 4,000 but not over $ 8,000 | $ 68.00 plus 3.2% of excess over $ 4,000 |
| Over $ 8,000 but not over $ 12,000 | $ 196 plus 4.7% of excess over $ 8,000 |
| Over $ 12,000 | $ 384 plus 4.9% of excess over $ 12,000. |
B. For heads of household, surviving spouses and married individuals filing joint returns:
| If the taxable income is: | The tax shall be: |
| Not over $8,000 | 1.7% of taxable income |
| Over $ 8,000 but not over $ 16,000 | $ 136 plus 3.2% of excess over $ 8,000 |
| Over $ 16,000 but not over $ 24,000 | $ 392 plus 4.7% of excess over $ 16,000 |
| Over $ 24,000 | $ 768 plus 4.9% of excess over $ 24,000. |
C. For single individuals and for estates and trusts:
| If the taxable income is: | The tax shall be: |
| Not over $5,500 | 1.7% of taxable income |
| Over $ 5,500 but not over $ 11,000 | $ 93.50 plus 3.2% of excess over $ 5,500 |
| Over $ 11,000 but not over $ 16,000 | $ 269.50 plus 4.7% of excess over $ 11,000 |
| Over $ 16,000 | $ 504.50 plus 4.9% of excess over $ 16,000. |
D. 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.
History: Laws 2005, ch. 104, § 4.
ANNOTATIONSRepeals and reenactments. — Laws 2005, ch. 104, § 4 repealed 7-2-7 NMSA 1978, as enacted by Laws 2003, ch. 2, § 6 and amended by Laws 2005, ch. 104, § 3 and enacted a new 7-2-7 NMSA 1978, effective January 1, 2008. Effective January 1, 2008, the top rate for a married individual filing a separate return, heads of households, surviving spouses and married individuals filing joint returns and single individuals and estate and trusts will be reduced from 5.3% to 4.9%. The imposition of the top rate varies for each group of taxpayers.