New Mexico

New Mexico Tax Changes - November 2024

Quick Look

Week Of 11.21.2024

2025 Withholding Tax Publication

  • Issued by: New Mexico Taxation and Revenue Department
  • Effective Date: January 1, 2025
  • Content: The publication provides updated information on withholding tax for both corporate income tax and personal income tax. It covers topics such as:
    • Who must withhold
    • Amount to be withheld
    • How to use the withholding tax tables
    • Additional withholding amounts
    • Withholding on gambling winnings
    • Annual withholding statements and reconciliation
    • Withholding from irregular or supplemental wages
    • Special situations

Interest Rate Reduction for Q1 2025

  • Effective Period: January 1, 2025 to March 31, 2025
  • Change: The interest rate for underpayments and overpayments of New Mexico taxes is reduced to 7% from 8% in Q4 2024.
  • Basis: The interest rate is aligned with the rate set by the U.S. Treasury Secretary under IRC § 6621.

Last updated: December 6, 2024
Detailed Look

Week Of 11.21.2024

New Mexico Corporate Income Tax—New Mexico updates withholding tax publication for 2025.

The New Mexico Taxation and Revenue Department has updated its publication on withholding tax to reflect the wage withholding tables effective on January 1, 2025. The publication contains information on how to report and pay withholding taxes, including who must withhold; the amount to be withheld; how to use the withholding tax tables; additional withholding amounts; withholding on gambling winnings; annual withholding statements; annual reconciliation; withholding from irregular, supplemental wages or fringe benefits; and special situations. (FYI -104: New Mexico Withholding Tax Effective January 1, 2025, N.M. Tax. and Rev. Dept., 11/01/2024.)

New Mexico General Administrative Provisions—New Mexico interest rate decreases for first quarter of 2025.

The New Mexico interest rate for underpayments and overpayments for the first quarter of calendar year 2025 (January 1, 2025, through March 31, 2025) will be 7%, a decrease from the 8% rate for the the fourth quarter of calendar year 2024 (October 1, 2024, through December 31, 2024). The annual rate of interest on underpayments and overpayments of New Mexico taxes is the same rate established for interest on underpayments of tax by the U.S. Treasury Secretary under IRC § 6621. (Rev Rul 2024-25, 2024-49 IRB 1.)

New Mexico Personal Income Tax—New Mexico updates withholding tax publication for 2025.

The New Mexico Taxation and Revenue Department has updated its publication on withholding tax to reflect the wage withholding tables effective on January 1, 2025. The publication contains information on how to report and pay withholding taxes, including who must withhold; the amount to be withheld; how to use the withholding tax tables; additional withholding amounts; withholding on gambling winnings; annual withholding statements; annual reconciliation; withholding from irregular, supplemental wages or fringe benefits; and special situations. (FYI -104: New Mexico Withholding Tax Effective January 1, 2025, N.M. Tax. and Rev. Dept., 11/01/2024.)

Last updated: December 6, 2024

Week Of 11.21.2024

New Mexico Corporate Income Tax—New Mexico updates withholding tax publication for 2025.

The New Mexico Taxation and Revenue Department has updated its publication on withholding tax to reflect the wage withholding tables effective on January 1, 2025. The publication contains information on how to report and pay withholding taxes, including who must withhold; the amount to be withheld; how to use the withholding tax tables; additional withholding amounts; withholding on gambling winnings; annual withholding statements; annual reconciliation; withholding from irregular, supplemental wages or fringe benefits; and special situations. (FYI -104: New Mexico Withholding Tax Effective January 1, 2025, N.M. Tax. and Rev. Dept., 11/01/2024.)

New Mexico General Administrative Provisions—New Mexico interest rate decreases for first quarter of 2025.

The New Mexico interest rate for underpayments and overpayments for the first quarter of calendar year 2025 (January 1, 2025, through March 31, 2025) will be 7%, a decrease from the 8% rate for the the fourth quarter of calendar year 2024 (October 1, 2024, through December 31, 2024). The annual rate of interest on underpayments and overpayments of New Mexico taxes is the same rate established for interest on underpayments of tax by the U.S. Treasury Secretary under IRC § 6621. (Rev Rul 2024-25, 2024-49 IRB 1.)

New Mexico Personal Income Tax—New Mexico updates withholding tax publication for 2025.

The New Mexico Taxation and Revenue Department has updated its publication on withholding tax to reflect the wage withholding tables effective on January 1, 2025. The publication contains information on how to report and pay withholding taxes, including who must withhold; the amount to be withheld; how to use the withholding tax tables; additional withholding amounts; withholding on gambling winnings; annual withholding statements; annual reconciliation; withholding from irregular, supplemental wages or fringe benefits; and special situations. (FYI -104: New Mexico Withholding Tax Effective January 1, 2025, N.M. Tax. and Rev. Dept., 11/01/2024.)