If you earn 1099 or self-employment income in New Mexico, the IRS and the state both expect you to pay taxes as you go, in four quarterly installments rather than one April bill. This calculator estimates your 2026 quarterly payments across all three pieces: federal self-employment tax, federal income tax, and New Mexico state income tax. New Mexico restructured its income tax for 2025 (HB 252) into six brackets from 1.5% to 5.9%, cutting taxes for most middle-income filers. Enter your expected net self-employment income, any W-2 wages, and your filing status to see what to send each quarter, your due dates, and how the safe-harbor rules protect you from an underpayment penalty. Everything is an estimate for planning. Always confirm with the New Mexico Taxation and Revenue Department before you file.
Self-employment income has no tax withheld for you, so both the IRS and New Mexico Taxation and Revenue Department ask you to prepay in quarterly installments. On the federal side you owe self-employment tax (15.3% Social Security and Medicare on 92.35% of your net profit, up to the Social Security wage base) plus federal income tax on your profit after the standard deduction. On top of that, New Mexico applies its own income tax.
New Mexico generally requires estimated payments once you expect to owe more than $500 in state tax for the year. New Mexico follows the federal schedule: April 15, June 15, September 15, and January 15. New Mexico follows the standard four-installment schedule.
You avoid an IRS underpayment penalty by hitting a "safe harbor": paying at least 90% of this year's total tax, or 100% of last year's (110% if your income is higher). New Mexico restructured its rates for 2025 (HB 252) into six brackets from 1.5% to 5.9%. It conforms to the federal standard deduction and starts from your federal taxable income. You can pay online through the New Mexico Taxation and Revenue Department portal, and the calculator above breaks your total into the federal and New Mexico pieces so you can send each to the right place. You can pay online at the New Mexico Taxation and Revenue Department (payment portal).
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For educational purposes only, not tax advice. Tax rules change and individual situations vary; confirm figures with a tax professional and the New Mexico Taxation and Revenue Department before filing. State tax data last verified 2026-07-05.
Sources: tax.newmexico.gov.