Bill > HB93

This bill, titled the Standard Income Tax Deduction Increase, proposes to amend the definition of "net income" for state income tax purposes by increasing the standard deduction allowed to taxpayers. Specifically, it inserts language to make the state's standard deduction equal to two hundred five percent (205%) of the standard deduction allowed by the federal government, as defined in Section 63 of the Internal Revenue Code. The Internal Revenue Code (IRC) is the body of federal tax law. The standard deduction is a fixed dollar amount that reduces the amount of income on which a taxpayer is taxed, and it is an alternative to itemizing deductions. This change will apply to taxable years beginning on or after January 1, 2026.

Government Affairs

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=93&year=26