The tax imposed by Section 7-2-3 N.M. Stat. Ann. shall be at the following rates for taxable years beginning in 2006 or 2007:

A. For married individuals filing separate returns:

If the taxable income is:                                     The tax shall be: Not over $4,000                                            1.7% of taxable income Over $ 4,000 but not over $ 8,000                $ 68.00 plus 3.2% of excess over $ 4,000 Over $ 8,000 but not over $ 12,000             $ 196 plus 4.7% of excess over $ 8,000 Over $ 12,000                                             $ 384 plus 5.3% of excess over $ 12,000.

B. For heads of household, surviving spouses and married individuals filing joint returns:

If the taxable income is:                                     The tax shall be: Not over $8,000                                            1.7% of taxable income Over $ 8,000 but not over $ 16,000             $ 136 plus 3.2% of excess over $ 8,000 Over $ 16,000 but not over $ 24,000            $ 392 plus 4.7% of excess over $ 16,000 Over $ 24,000                                             $ 768 plus 5.3% of excess over $ 24,000.

C. For single individuals and for estates and trusts:

If the taxable income is:                                     The tax shall be: Not over $5,500                                            1.7% of taxable income Over $ 5,500 but not over $ 11,000             $ 93.50 plus 3.2% of excess over $ 5,500 Over $ 11,000 but not over $ 16,000            $ 269.50 plus 4.7% of excess over $ 11,000 Over $ 16,000                                             $ 504.50 plus 5.3% of excess over $ 16,000.

D. The tax on the sum of any lump-sum amounts included in net income is an amount equal to five multiplied by the difference between:

(1)     the amount of tax due on the taxpayer’s taxable income; and

(2)     the amount of tax that would be due on an amount equal to the taxpayer’s taxable income and twenty percent of the taxpayer’s lump-sum amounts included in net income.