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NM Residents Not Gouged As Much For Personal Income Taxes

NM Residents Not Gouged As Much For Personal Income Taxes

New Mexico ranked 38th among the sates when it came to per capita individual tax collections. The state took an average of $622 in personal income taxes from every person in the state in 2014.

Here’s some good news for New Mexicans: the state doesn’t grab as much individual income tax money from each of us than other states do from their residents.

New Mexico ranked 38th among the sates when it came to per capita individual tax collections, according to the Washington, D.C.-based Tax Foundation.

State government took an average of $622 in personal income taxes from every person in the state in 2014.

Nationally, state and local governments collected an average of $1,070 per person in individual income taxes in 2014. New York collected $2,699 per person, the most of any state. Connecticut was second at $2,162, and Maryland was third at $2,097 collected per person.

Arizona collected $515 per person, the least among states with broad-based taxes on wage income, the Tax Foundation said.

Seven states – Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming – don’t have personal income taxes.

New Hampshire and Tennessee tax only dividend and interest income.

According to the Tax Foundation, “The individual income tax is the third largest source of tax revenue for state and local governments, accounting for 22.9 percent of collections in fiscal year 2014. Property taxes and sales taxes comprise larger shares of state and local tax collection at 31.3 percent and 23.3 percent respectively.”

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4 Comments

  • Jeff
    July 21, 2017, 10:11 am

    Why use ‘Gouged’? If you’re implying the state is wasting money, turn this into an opinion piece and explain it. Otherwise, there’s an equally good argument that we’re under-taxed (at the high income levels) and the mantra "you get what you pay for" rings true in regards to underfunded state services.

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  • dennis
    July 21, 2017, 11:28 am

    well, I pay much more than the average . And I’m retired I see all the deductions on the form but none apply to
    me The state taxes fully all of my retirement income from the military and SSN. Seems special interests get all
    the breaks for doing nothing for the state. Starting to be tempted by other states non personal income tax rate to move. Geez even NY has a deduction for Military retirement pay,
    .

    REPLY
    • Milton E Strauss@dennis
      July 21, 2017, 5:13 pm

      My Social Security benefits and retirement income is taxed too. Income is income, regardless of how it was acquired. The retired military has other untaxed benefits which the rest of us don’t, e.g. reduced health insurance costs and PX privileges.

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  • Milton Strauss
    July 21, 2017, 5:09 pm

    This is not good news at all. It accounts for the poor level of services provided for educating our children (K – B.A), providing health care for the poor and maintaining infrastructure, among other things. The income tax rate is so flat that taxpayers earning over $350,000 a year pay the same tax rate as those earning $80,000. Taxes should be more graduated at the upper end.

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Dennis Domrzalski is managing editor of ABQ Free Press. Reach him at dennis@freeabq.com.

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