ELIMINATE PERSONAL INCOME TAX

HB 275 would establish a 0% flat individual income tax rate for New Mexico residents, effective for tax years beginning January 1, 2026. The bill eliminates the requirement for residents to file personal income tax returns (though filing remains optional), modifying existing tax code sections to remove all tax brackets and filing obligations. It directly affects all New Mexico residents who currently file state income tax returns, including individuals, married couples, and heads of household. The key provision replaces all existing tax brackets with a zero tax rate and removes the mandatory filing requirement under Section 7-2-12. The bill was referred to committees but was postponed indefinitely on June 3, 2025.