1099 Quarterly Taxes in New Mexico (2025-2026)
If you're self-employed in New Mexico — freelancer, contractor, gig worker, or single-member LLC — you owe quarterly estimated taxes to two agencies: the IRS (federal) and New Mexico Taxation and Revenue Department (state). New Mexico's top marginal rate is 5.9%, applied progressively. Getting your estimates right matters because under-payment penalties stack on top of the actual tax owed.
New Mexico state income tax (2025)
New Mexico uses a progressive bracket system on top of federal tax. For single filers in 2025:
| Income (single filer) | Marginal rate |
|---|---|
| $0 – $5,500 | 1.70% |
| $5,500 – $16,500 | 3.20% |
| $16,500 – $33,500 | 4.70% |
| $33,500 – $210,000 | 4.90% |
| $210,000+ | 5.90% |
How to pay New Mexico estimated taxes
Federal estimated tax due dates (April 15, June 16, September 15, 2026, and January 15, 2027) apply to your New Mexico state estimated payments as well — most states piggyback on the federal schedule. Pay New Mexico taxes through the New Mexico Taxation and Revenue Department's online portal: tap.state.nm.us. You can also mail Form PIT-ES with a check.
New Mexico-specific quirk freelancers miss
New Mexico levies a Gross Receipts Tax (5.125% state + local up to 4%) on most services — including freelance professional services. This is the freelancer's biggest NM tax surprise: even if you pay $0 income tax, you may owe GRT on your billings.
Common deductions for New Mexico freelancers
- New Mexico allows the same business expenses (home office, mileage, software, etc.) as federal.
- Half of SE tax is deductible federally; check New Mexico's rules for state conformity.
- NM conforms to federal QBI deduction.
- SEP-IRA / Solo 401(k) contributions reduce both federal and New Mexico taxable income.
- Self-employed health insurance premiums are deductible federally.