New Mexico State Income Tax Rate on Lottery Winnings 2026 Calculator
The New Mexico state income tax rate on lottery winnings 2026 is 6%. This calculator shows you your exact after-tax take-home from Powerball, Mega Millions, and other New Mexico lottery games, including both federal and state taxes.
New Mexico's 6% State Tax
New Mexico imposes 6% on lottery winnings. On $60M, that's $3.6M in state taxes. Moderate nationally.
Total Tax Burden
Federal 37% + New Mexico 6% = 43%. With federal gap, typically 40-43% of lump sum.
Land of Enchantment Lottery
New Mexico Lottery generates revenue for education and programs.
Withholding
24% federal, 37% actual, plus 6% New Mexico.
Lump Sum vs Annuity
6% for both. Annuity may help federal planning.
Regional Comparison
New Mexico's 6% is standard for Southwest region.
Tax Planning
Consult professionals before claiming.
New Mexico Games
Powerball, Mega Millions, and state games all taxed at 6%.
New Mexico Lottery Tax FAQ
Q:New Mexico's tax rate?
Flat 6% on all lottery prizes.
Q:Total tax?
Federal 37% + New Mexico 6% = 43%, typically 40-43% total.
Q:Lump sum vs annuity?
Both taxed at 6%.
Q:Reduce it?
No, mandatory 6% withholding.
Q:Move after?
If claimed in New Mexico, 6% applies to that win.
Q:Regional comparison?
New Mexico's 6% is standard for Southwest.
Q:Revenue?
New Mexico lottery supports education.