General Fund Revenue Sources – Corporate Income Tax – Cont'd Tax Liability Corporate income tax is imposed at three rates: – 4.8% for net income of $500,000 or less; – 6.4% of net income between $500,000 and $1,000,000; and – 7.6% of net income over $1,000,000 – New Mexico has the 21 st highest top corporate income tax rate and the highest of surrounding states In NM, rates are applied to the taxpayer's unapportioned income, and that tax is then prorated based on the taxpayer's apportion/allocation percentage Credits reduce tax liability Corporate franchise tax also applies - $50 per year per corporation N.M.
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