Roth conversion taxes in New Mexico (2026)
By Mario Bailey · Published · Last reviewed
New Mexico taxes Roth conversions as ordinary income at graduated rates up to 5.9%. A conversion adds to your state taxable income in the year you convert, on top of federal tax. The table below shows the computed New Mexico tax on a $50,000 conversion at three baseline income levels, using 2026 rates.
Computed example: $50,000 conversion
State tax only (federal not included), age 66, standard deduction, no other state adjustments. Computed with the same functions the calculator uses.
| Filing status | Baseline income | State tax without conversion | With $50,000 conversion | Tax on the conversion | Effective rate |
|---|---|---|---|---|---|
| Single | $40,000 | $892 | $3,342 | $2,450 | 4.9% |
| Single | $80,000 | $2,852 | $5,302 | $2,450 | 4.9% |
| Single | $150,000 | $6,282 | $8,732 | $2,450 | 4.9% |
| Married filing jointly | $40,000 | $133 | $2,424 | $2,292 | 4.6% |
| Married filing jointly | $80,000 | $1,934 | $4,384 | $2,450 | 4.9% |
| Married filing jointly | $150,000 | $5,364 | $7,814 | $2,450 | 4.9% |
Social Security and retirement income
New Mexico does not tax Social Security benefits. A conversion can still raise the federally taxable share of your benefits through the provisional income formula.
New Mexico five-bracket structure; top rate 5.9% (HB 291, 2021). Social Security: 100% exempt for filers with income below $100,000 single / $150,000 MFJ. Higher-income filers receive only a partial SS exemption -- modeled as fully exempt here (may understate tax for high-income retirees). Federal standard deduction applies.
FAQ
Does New Mexico tax Roth conversions?
Yes. New Mexico taxes Roth conversions as ordinary income at graduated rates up to 5.9%. Federal tax applies on top.
Does New Mexico tax Social Security benefits?
No. Social Security benefits are not subject to New Mexico income tax.
What is the top New Mexico rate on a conversion in 2026?
5.9% at the highest marginal rate.
Model your New Mexico conversion in the calculator
Rate data source: https://www.tax.newmexico.gov/individuals/ (New Mexico TRD; five-bracket structure with 5.9% top rate per HB 291 (2021); SS exempt below $100k/$150k income thresholds)