CERTAIN INCOME TAX EXEMPTIONS

SB 140 would exempt certain New Mexico residents from state income tax based on their annual income levels. Specifically, it would eliminate state income tax for single individuals earning $40,000 or less, married individuals filing separately earning $30,000 or less, and married couples filing jointly earning $60,000 or less. The exemption applies to taxable years beginning January 1, 2025, directly affecting low-to-moderate income earners in the state. This policy change modifies the state's income tax structure by creating new thresholds for tax liability.