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New Member
posted Jun 1, 2019 5:13:30 AM

If I live in New Mexico but work in Texas, do I still have to pay New Mexico state taxes?

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1 Best answer
Level 15
Jun 1, 2019 5:13:31 AM

Yes, you do

IF TX taxed that income, it would still have to be included as NM income, but you would be able to take a credit for taxes paid to TX.....BUT since TX doesn't have an income tax, NM taxes it all.

This is not unusual.  All income-taxing states operate their state taxes the same way  

(except for a few "reciprocal tax states" which operate in a slightly different way)

1 Replies
Level 15
Jun 1, 2019 5:13:31 AM

Yes, you do

IF TX taxed that income, it would still have to be included as NM income, but you would be able to take a credit for taxes paid to TX.....BUT since TX doesn't have an income tax, NM taxes it all.

This is not unusual.  All income-taxing states operate their state taxes the same way  

(except for a few "reciprocal tax states" which operate in a slightly different way)