Arizona vs New Mexico Taxes: Take-Home Pay Compared (2026)
On a $75,000 salary, a single filer keeps $693 more a year in Arizona than in New Mexico ($58 a month).
Arizona
2.5% flat state income tax
$59,926
take-home on $75,000 · $4,994/month
12th of 51 states for take-home pay
Arizona paycheck calculator ›New Mexico
1.5% - 5.9% state income tax
$59,233
take-home on $75,000 · $4,936/month
17th of 51 states for take-home pay
New Mexico paycheck calculator ›Take-home pay in Arizona and New Mexico by salary
| Salary | Arizona | New Mexico | Difference |
|---|---|---|---|
| $40,000 | $33,529 | $33,567 | $38 more in New Mexico |
| $50,000 | $41,314 | $41,171 | $143 more in Arizona |
| $60,000 | $49,099 | $48,736 | $363 more in Arizona |
| $75,000 | $59,926 | $59,233 | $693 more in Arizona |
| $100,000 | $76,889 | $75,611 | $1,278 more in Arizona |
| $125,000 | $93,788 | $91,910 | $1,878 more in Arizona |
| $150,000 | $110,250 | $107,772 | $2,478 more in Arizona |
| $200,000 | $144,136 | $140,458 | $3,678 more in Arizona |
Single filer, standard deduction, no local tax. To match $75,000 in Arizona you would need about $76,050 in New Mexico; to match $75,000 in New Mexico you would need about $74,000 in Arizona.
How Arizona and New Mexico tax wages
| 2026 | Arizona | New Mexico |
|---|---|---|
| Income tax | a flat 2.5% income tax | 6 brackets from 1.5% to 5.9% |
| Top rate | 2.5% | 5.9% |
| Standard deduction | $8,350 single | Federal ($16,100 single) |
| State tax on $75k | $1,666 (2.2%) | $2,359 (3.1%) |
| Local wage taxes | No | No |
| Reciprocity | None | None |
Arizona vs New Mexico: FAQ
Does Arizona or New Mexico have lower income taxes in 2026?
On a $75,000 salary, a single filer keeps $693 more a year in Arizona than in New Mexico ($58 a month). Arizona has a flat 2.5% income tax for 2026. New Mexico has 6 brackets from 1.5% to 5.9% for 2026. For single filers the top 5.9% rate starts at $210,000 of taxable income.
What salary in New Mexico equals $75,000 in Arizona?
To take home the same $59,926 that $75,000 leaves in Arizona, you would need about $76,050 in New Mexico, based on income, payroll, and state taxes only. Housing and other living costs are not included.
How much more do high earners keep in Arizona than in New Mexico?
At $150,000 the gap is $2,478 a year: $110,250 in Arizona versus $107,772 in New Mexico. Progressive brackets make the difference grow faster as income rises.
What if I live in Arizona and work in New Mexico?
Arizona and New Mexico do not have a reciprocity agreement, so New Mexico withholds tax on wages earned there and Arizona generally gives residents a credit for tax paid to the other state. You effectively pay the higher of the two rates.