New Mexico Lottery
New Mexico Lottery Tax Calculator
New Mexico’s 2024 tax overhaul set six brackets from 1.5% to 5.9% for 2025 and later, giving heads of household the same brackets as married couples — the rates a New Mexico Lottery prize is taxed at.
Verified · tax year 2026
New Mexico prize — results
Take-home
62.4% kept of $1,000,000
Annuity · 30 payments
Year 1 — → year 30 —
| Cash received | $1,000,000 |
|---|---|
| Federal income tax | −$320,000 |
| Tax to New Mexico | $0 |
| New Mexico tax | −$56,358 |
| Local income tax | $0 |
| You keep | $623,642 |
| Federal withholding (24%) | −$240,000 |
|---|---|
| State withholding | not published |
| Check you receive | $760,000 |
| Still owed when you file | $136,358 |
Data: IRS Rev. Proc. 2025-32 · state agencies, verified · what this leaves out
Brackets from House Bill 252
HB 252 rewrote NMSA § 7-2-7 for taxable years beginning in 2025: single filers pay 1.5% up to $5,500, then 3.2%, 4.3%, 4.7% and 4.9%, with 5.9% above $210,000. Married couples and heads of household use breakpoints of $8,000, $25,000, $50,000, $100,000 and $315,000. A $1,000,000 prize carries $56,358 of New Mexico tax for a single filer with no other income.
Withholding to confirm at claim
The New Mexico Lottery’s claim and FAQ pages do not state a state withholding rate, so the calculator does not assume one. Federal withholding of 24% applies above $5,000. Texans, Arizonans and Coloradans who buy New Mexico tickets should check how New Mexico treats a nonresident’s prize; Texans have no home income tax to credit it against.
New Mexico at a glance
| State income tax on winnings | Up to 5.9% |
|---|---|
| Rate table used | 2025 and later (HB 252, 2024) |
| Lottery | New Mexico Lottery |
| State withholding at claim | Rate not published |
What New Mexico winners should know
- New Mexico’s 2024 rewrite (HB 252) gives heads of household the same brackets as married couples filing jointly.
- The 5.9% top rate begins at $210,000 single and $315,000 joint.
New Mexico sources
- HB 252 (2024), Section 5 amending NMSA 1978 § 7-2-7 — New Mexico Legislature
Agency: New Mexico Taxation and Revenue Department. † read through a browser session (why). How the math works.