New Mexico
New Mexico Treats Poor Families Under Its Income Tax Better Than Most Other States
New Mexicos 1999 income tax threshold the income level at which families begin paying income tax: Ranking among 42 states with income taxes
For two-parent families of four: $20,600. 12th highest
For single-parent families of three: $18,000. 13th highest
New Mexicos 1999 income tax for working-poor and near-poor families:For families of four with poverty-line incomes ($17,028): $70 refund. 8th lowest
For families of three with poverty-line incomes ($13,290): $85 refund. 9th lowest
For families of three with minimum-wage earnings ($10,712): $100 refund. 9th lowest
For families of four with incomes at 125% of the poverty line ($21,285): $17 tax. 11th lowest
For families of three with incomes at 125% of the poverty line ($16,613): $30 refund. 7th lowest
New Mexico has consistently exempted families with below-poverty earnings from the income tax.In 1991, a family of four owed no tax until its income reached 3 percent above the poverty line. New Mexicos tax threshold is now 21 percent above the poverty line.