Live in New Mexico, work in Colorado
No reciprocity: you file a nonresident return in the work state and pay its tax. Your home state gives a credit for that tax, so you pay the home state only if its tax is higher.
State income tax: $3,692 a year
Living in New Mexico and working in Colorado, you'd pay about $3,692 in state income tax on $100,000 of wages, $123 more than if you worked in New Mexico.
No reciprocity: you file a nonresident return in the work state and pay its tax. Your home state gives a credit for that tax, so you pay the home state only if its tax is higher.
State tax at different salaries
| Wages | To CO | To NM | Total | If you worked in NM |
|---|---|---|---|---|
| $50,000 | $1,492 | $0 | $1,492 | $1,184 |
| $75,000 | $2,592 | $0 | $2,592 | $2,359 |
| $100,000 | $3,692 | $0 | $3,692 | $3,569 |
| $150,000 | $5,892 | $128 | $6,019 | $6,019 |
| $250,000 | $10,292 | $867 | $11,158 | $11,158 |
Single filer, all wages earned in Colorado, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- Ask your employer to withhold Colorado tax. If New Mexico's tax is higher, withhold the difference for New Mexico too (or make estimated payments) to avoid an underpayment penalty.
- File the Colorado nonresident return first, then claim the credit for taxes paid to another state on your New Mexico resident return.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Frequently asked questions
Do I pay Colorado income tax if I live in New Mexico?
Yes. Colorado taxes wages earned there by nonresidents. On $100,000 that's about $3,692.
Do I have to file taxes in both New Mexico and Colorado?
Usually yes: a nonresident return in Colorado and a resident return in New Mexico, where you claim a credit for the tax paid to Colorado. File the Colorado return first.
Will I be taxed twice?
Not on the same state-level wages. New Mexico credits the tax you pay Colorado, so your total is about $3,692 on $100,000, compared with $3,569 if you also worked in New Mexico. Local city or county taxes may still apply.
Related
- Live in Colorado, work in New Mexico
- Moving from New Mexico to Colorado
- Moving from Colorado to New Mexico
- Live in New Mexico, work in Arizona
- Live in New Mexico, work in Oklahoma
- Live in New Mexico, work in Texas
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.