New Mexico Home Office Deduction Calculator
New Mexico has a graduated state income tax with a top rate of 5.90%. Combined with your federal self-employment and income tax, that determines how much a home office deduction is actually worth to you in New Mexico.
Business-use percentage
10.0%
Simplified method
$750
$5/sq ft, up to 300 sq ft
Actual expense method
$2,300
10.0% of $23,000 in home expenses
Tax impact of the actual expense method
Deduction amount $2,300
Total tax without deduction $17,605
Total tax with deduction $16,975
Estimated tax savings $631