Bill > HB292

This bill modifies the personal income tax brackets and rates for New Mexico taxpayers, with changes taking effect for taxable years beginning on or after January 1, 2016. The bill adjusts the income thresholds and corresponding tax percentages for various filing statuses, including married individuals filing separately, heads of household, surviving spouses, married individuals filing jointly, single individuals, and estates and trusts. For instance, the tax rate for married individuals filing separately on income over $30,000 but not over $45,000 will be 3% of taxable income, and for income over $45,000 but not over $75,000, it will be 4% of taxable income, with further adjustments for higher income brackets. Similar adjustments are made to the tax rates and income brackets for other filing statuses, generally increasing the income thresholds for each tax bracket and adjusting the tax rates within those brackets. Additionally, the bill retains a provision for calculating the tax on lump-sum amounts included in net income, which involves a calculation based on the difference between the tax on total taxable income and the tax on taxable income plus twenty percent of the lump-sum amounts.