Bill > HB540

This bill amends New Mexico's individual income tax rates, specifically by introducing a new, higher tax bracket for individuals with significant taxable income, effective for tax years beginning on or after January 1, 2015. For heads of household, surviving spouses, and married individuals filing jointly, income exceeding $225,000 will now be taxed at a rate of 5.9%, with the tax on this portion being $10,617 plus 5.9% of the excess over $225,000. Similarly, single individuals and estates/trusts with taxable income over $150,000 will also face a 5.9% tax rate on income above that threshold, calculated as $7,070.50 plus 5.9% of the excess over $150,000. Married individuals filing separate returns will see a new top bracket for income over $112,500, taxed at 5.9%, amounting to $5,308.50 plus 5.9% of the excess over $112,500. The bill also retains provisions for taxing lump-sum income amounts.