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

[SteamTrain · Accepted solution]

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)