Gregg Hull Proposed New Mexico Tax Phase-Out
The gubernatorial candidate unveiled a four-year plan to eliminate personal income taxes in the state.
Updated on Oct. 5, 2026 in Taxes
Live Poll
Do you prefer phasing out income tax over expanding tax credits to improve affordability in New Mexico?
Republican gubernatorial candidate Gregg Hull has proposed a plan to phase out personal income tax in New Mexico over four years. The proposal prioritizes tax decreases for low-income households while maintaining taxes on business profits.
Why it matters
The plan aims to provide broad tax relief to state residents through a phased implementation strategy. It requires approval from the state legislature and includes fiscal checks to ensure the state can afford the reduction without cutting essential services.
The proposed plan outlines a four-year timeline for the total elimination of personal income tax. This initiative stands in contrast to the $250 taxpayer rebate previously suggested by Governor Michelle Lujan Grisham earlier this year.
The players
Gregg Hull
He is a Republican candidate running for governor of New Mexico.
Deb Haaland
She is a Democratic candidate for governor of New Mexico who has proposed alternative economic policies.
Michelle Lujan Grisham
She is the current Governor of New Mexico.
The details
The policy requires legislative approval and mandates that each of the four reduction phases be verified for state affordability. Meanwhile, Democratic candidate Deb Haaland has countered with proposals to expand the Working Families Tax Credit, the Child Tax Credit, and increase the minimum wage.
Timeline
Earlier this year, Governor Michelle Lujan Grisham suggested a $250 taxpayer rebate.
Early voting begins this Tuesday.
Election Day occurs on November 3.
Market Dynamics
This policy proposal reflects a larger shift in state-level fiscal debates concerning tax competition and revenue generation. It follows a pattern set by other states attempting to use tax code reform to differentiate their economic environments for residents and businesses.
If enacted, this tax phase-out would shift the personal financial planning landscape for New Mexico residents by eliminating income-based tax liabilities. Taxpayers should evaluate how these potential changes intersect with other proposed credits and wage adjustments when considering their long-term savings strategies.
The takeaway
Voters should weigh the long-term implications of these divergent tax strategies on their household budgets. Assessing the feasibility of funding state services alongside tax reductions remains a critical consideration for the electorate.
Further reading
For more information on state fiscal policies, visit the Taxes section.
Source note: This article includes information reported by KRQE 13.
Live Poll
Do you prefer phasing out income tax over expanding tax credits to improve affordability in New Mexico?
