Quick answer
A single freelancer in New Mexico with $75,000 of profit pays about $2,110 of New Mexico income tax in 2026 on top of about $15,495 of federal tax (self-employment tax of 15.3% on 92.35% of profit plus income tax), keeping about $57,395. At $50,000 the state bill is about $1,031; at $100,000, about $3,223. Most services also owe New Mexico gross receipts tax.
New Mexico’s income tax on freelancers is moderate, but the state has a tax most others don’t: a gross receipts tax that applies to most services, not just goods. If you freelance from New Mexico, that tax can cost you more than income tax. Here is what you owe for 2026.
How New Mexico compares: in our 50-state take-home pay ranking, a single freelancer with $75,000 of profit keeps $57,395 in New Mexico after federal and state income tax, 20th of 51 (state income tax: $2,110).
Set aside from every payment
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That is $0 of every $1,000 you receive
- Federal income tax share
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- Self-employment tax share
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- State tax share
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- Total to save this year
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Estimate for information only — not tax, legal or financial advice. Federal figures for tax year 2026; state and local taxes are not included unless you enter them. Check your situation with a CPA or enrolled agent.
What you pay on freelance profit
| Tax | Rate |
|---|---|
| Federal self-employment tax | 15.3% on 92.35% of profit (12.4% part capped at $184,500 for 2026) |
| Federal income tax | 10%–37% |
| New Mexico income tax | 1.5% to 5.9% of taxable income |
| Gross receipts tax | 4.875% state rate plus county and city rates, on your receipts (not your profit) |
New Mexico’s income tax brackets
For a single filer, New Mexico taxes taxable income at 1.5% up to $5,500, 3.2% up to $16,500, 4.3% up to $33,500, 4.7% up to $66,500, 4.9% up to $210,000 and 5.9% above that. New Mexico starts from your federal adjusted gross income and uses the same $16,100 standard deduction as the federal return. Schedule C expenses and the deduction for half of your self-employment tax reduce New Mexico income; the federal QBI deduction does not.
Gross receipts tax on your services
- You owe it, not your client. Gross receipts tax is imposed on the business. You can pass it on to clients, but if you do, it must be listed separately on the invoice.
- It applies to services performed in New Mexico, and to services performed elsewhere when the product is first used in New Mexico.
- Your rate depends on location. The state rate is 4.875%, and counties and cities add their own increments. If your service needs a state license or a master’s degree, you use the rate where you perform the work. For most other services, you use the rate where the client receives the work. Look up rates on the Taxation and Revenue Department’s rate map; they generally change only on July 1.
- Out-of-state clients: receipts from a service sold to an out-of-state buyer can be deducted if the buyer receives and first uses the product of the service outside New Mexico. You need a nontaxable transaction certificate or other acceptable evidence.
- Filing: register for a New Mexico Business Tax ID and file Form TRD-41413 monthly, quarterly or semiannually, as the department assigns. Returns are due by the 25th of the month after each period.
Estimated income tax payments
New Mexico expects estimated income tax payments on the PIT-ES voucher or through the Taxpayer Access Point (TAP). The required annual payment is the lesser of 90% of this year’s tax or 100% of last year’s. The department checks for an underpayment penalty when the tax still due on your return is more than $1,000. Due dates match the IRS: April 15, June 15 and September 15, 2026, and January 15, 2027. Size the federal part with the quarterly estimated tax calculator.
How much to set aside
For income tax, enter 4.7 in the state field of the tax set-aside calculator, or 4.9 if your taxable income will top $66,500. Set aside your gross receipts tax separately, as a percentage of what you bill. If you add it to invoices, it doesn’t come out of your pocket. If you don’t, it reduces your profit.
Frequently asked questions
Does New Mexico tax freelance services?
Yes. New Mexico's gross receipts tax applies to most services, charged on your receipts rather than your profit. The state rate is 4.875%, and counties and cities add their own. You can pass it on to clients, but it must be listed separately on the invoice.
What is New Mexico's income tax rate for freelancers?
1.5% to 5.9%. For single filers, 4.7% applies up to $66,500 of taxable income and 4.9% up to $210,000. New Mexico uses the same $16,100 standard deduction as the federal return, but not the QBI deduction.
Do out-of-state clients owe New Mexico gross receipts tax?
Not always. Receipts from a service sold to an out-of-state buyer can be deducted if the buyer receives and first uses the product of the service outside New Mexico. You need a nontaxable transaction certificate or other acceptable evidence.
When are New Mexico estimated tax payments due?
April 15, June 15 and September 15, 2026, and January 15, 2027, using the PIT-ES voucher or the Taxpayer Access Point. The required annual payment is the lesser of 90% of this year's tax or 100% of last year's.