Tax Planning for Physicians in Santa Fe, NM (2026)

Physicians in Santa Fe pay federal tax at up to 37% plus New Mexico income tax (a top rate of 5.9%). Here is how the 2026 rules apply to doctors, dentists and practice owners in Santa Fe, NM.

2026 at a glance for Santa Fe, NM physicians

State tax figures apply New Mexico's 2026 brackets to state taxable income and ignore credits, deductions and local taxes.

Local taxes in Santa Fe

Santa Fe does not levy a city income tax, and New Mexico physicians generally do not face a separate city or county income tax on wages. Your tax picture is the federal rules plus New Mexico, which has a top rate of 5.9%.

State rules that apply in Santa Fe

Yes. The state has an elective pass-through entity tax (PTET) that partnerships and S corporations can use to deduct state income tax at the entity level.

• New Mexico's top rate is 5.9% and the state offers some physician-specific incentives, including a rural health care practitioner tax credit.
• New Mexico practice owners can elect the state pass-through entity tax.

Where the savings usually come from

For most Santa Fe physicians, federal planning drives the largest results: W-2 strategies such as 401(k)/403(b), 457(b) and the backdoor Roth; 1099 and locum planning; entity and cash balance plan design for practice owners; and real estate strategies for physicians with time to participate.

More physician tax guides

• Other New Mexico cities: Albuquerque, Las Cruces.
• State rules: New Mexico physician tax guide and all 50 state guides.
• By specialty: Orthopedic Surgeons, Emergency Physicians, Plastic Surgeons, Surgeons and every specialty.
• Core strategy: tax planning for physicians, tax planning for medical practice owners, advanced strategies for high-income physicians and S corporation tax planning for physicians, plus the physician tax glossary.

This article is for general educational purposes and is not tax, legal or investment advice. Tax law changes often and its application depends on your facts. Figures reflect 2026 rules as published by the sources listed above. Consult a qualified professional before acting. See our editorial policy.