MortgageCostsGuide

Mortgage Interest Deduction in New Mexico

State income tax rate
5.9%
Itemized deductions allowed
✅ Yes

State-Level Mortgage Interest Deduction

New Mexico conforms to federal itemized deductions with a top rate of 5.9%. Mortgage interest is deductible on state returns.

Combined Federal + New Mexico Savings

If you paid $18,000 in mortgage interest last year and itemize on both returns, your combined tax savings would be approximately:

  • Federal (22% bracket): $3,960
  • New Mexico (5.9% rate): $1,062
  • Total estimated savings: $5,022

These are estimates based on a 22% federal bracket. Your actual savings depend on your specific tax situation.

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