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  3. Does New Mexico offer a credit for income tax paid to another state?

Does New Mexico offer a credit for income tax paid to another state?

Yes, but only for New Mexico state residents. The credit is based on the tax the other state imposes on the portion of gross income that is also included in New Mexico gross income. The credit may not exceed the New Mexico income tax liability, nor can it be more than Q.5% of the income taxable in the other state.

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