State credits
New Mexico working families tax credit
New Mexico calls its earned income credit the working families tax credit and pays a quarter of the federal amount.
New Mexico and federal earned income credit calculator
Credits for tax year 2025, head of household, 3 qualifying children
$12,983
| Federal EITC | $8,046 |
| New Mexico Working Families Tax Credit | $2,012 |
| Child tax credit, lowers your tax | $0 |
| Additional child tax credit, refundable | $2,925 |
Plateau: the federal credit is at its maximum; federal maximum $8,046, nothing from $61,555.
$3,675 of child tax credit is lost: it exceeds your federal tax and the refundable cap.
Rules of the New Mexico creditThe New Mexico Working Families Tax Credit equals 25% of the federal earned income credit and is refundable. It is claimed on Form PIT-RC with the PIT-1 return. With three or more children at the 2025 federal maximum of $8,046, it adds $2,012; with two children, $1,788; with one, $1,082; without a qualifying child, up to $162. New Mexico takes the federal amount as its base and applies the federal eligibility rules. Bills to raise the rate further were debated in the 2026 session; we did not confirm an enacted change on the official site on November 1, 2026, so the calculator keeps 25% for 2026. New Mexico also has a separate refundable child income tax credit, not added here. The Taxation and Revenue Department publishes the forms.
IRS and state rules read by Radif Partners · Editorial policy · Method and sources
The New Mexico credit in one table
| Name | New Mexico Working Families Tax Credit |
| Form | Form PIT-RC |
| Administered by | New Mexico Taxation and Revenue Department |
| Tax year 2025 | 25% of the federal credit |
| Tax year 2026 | 25% of the federal credit |
| Refundable | refundable |
| ITIN filers | not accepted (same SSN rule as federal) |
| Worker without a qualifying child | federal age rule, 25 to 64 |
Two family credits
Besides this credit, New Mexico pays a child income tax credit per child, with its own income ranges and no link to the federal earned income credit, so a family above the federal limit can still receive it. The Taxation and Revenue Department lists both in the PIT-RC instructions. New Mexico also has a low-income comprehensive tax rebate, based on modified gross income and exemptions, claimed on the same schedule.
New Mexico credit by income, tax year 2025
| Earned income | No child | 1 child | 2 children | 3 or more |
|---|---|---|---|---|
| $5,000 | $96 | $427 | $503 | $565 |
| $10,000 | $162 | $852 | $1,003 | $1,128 |
| $15,000 | $78 | $1,082 | $1,503 | $1,690 |
| $20,000 | $0 | $1,082 | $1,788 | $2,012 |
| $25,000 | $0 | $1,015 | $1,700 | $1,923 |
| $30,000 | $0 | $815 | $1,437 | $1,660 |
| $40,000 | $0 | $416 | $910 | $1,134 |
| $50,000 | $0 | $16 | $384 | $607 |
| $60,000 | $0 | $0 | $0 | $81 |