{"place":"New Mexico","kind":"state","asOf":"2026-10-07","url":"https://gigaverse.ai/local/new-mexico","state":{"code":"NM","name":"New Mexico","slug":"new-mexico","incomeTax":{"type":"progressive","flatRate2026":null,"lowestRate2026":1.5,"topRate2026":5.9,"topRateStartsSingle":210000,"notes":"Single brackets: 1.5% to $5,500; 3.2% to $16,500; 4.3% to $33,500; 4.7% to $66,500; 4.9% to $210,000; 5.9% above $210,000. This six-bracket table has applied since January 1, 2025. The Taxation and Revenue Department's January 27, 2026 bill analysis lists it as the current table. We found no 2026 rate change.","source":"https://www.nmlegis.gov/Sessions/26%20Regular/AgencyAnalysis/HB0093_333.pdf"},"estimatedTax":{"form":"PIT-ES","rule":"Anyone who must file a New Mexico return has to pay estimated tax. TRD computes an underpayment penalty when the tax on the return exceeds estimated payments plus withholding by more than $1,000. The required annual payment is the lesser of 90% of current-year tax or 100% of prior-year tax.","schedule":"Same dates as federal (April 15, June 15, September 15, January 15).","source":"https://www.tax.newmexico.gov/individuals/estimated-payments/"},"minimumWage2026":{"standard":12,"tippedCash":3,"tipCreditAllowed":true,"notes":"The state rate has been $12.00 (tipped cash wage $3.00) since January 1, 2023. Albuquerque, Bernalillo County, Las Cruces, Santa Fe city, and Santa Fe County have their own minimum wage ordinances, and the state enforces the highest applicable rate. Albuquerque's 2026 city rate ($11.85) is below the state rate, so $12.00 applies there, but its 2026 tipped cash wage is $7.20 (https://www.cabq.gov/legal/albuquerque-minimum-wage-information).","source":"https://www.dws.nm.gov/Minimum-Wage-Information"},"soleProprietorTaxes":[{"name":"New Mexico gross receipts tax (GRT)","summary":"GRT applies to receipts from selling property and performing services in New Mexico, including a freelancer's or independent contractor's fees, with no deduction for business expenses. The state portion has been 4.875% since July 1, 2023, plus county and city rates. The combined rate depends on location and is usually passed on to customers.","source":"https://www.tax.newmexico.gov/wp-content/uploads/2023/08/July-2023_GRT-Filers-Kit.pdf"}],"contractorLaws":[{"name":"Independent contractor pay is subject to GRT (TRD classification rule)","summary":"TRD treats pay received by independent contractors as subject to gross receipts tax unless an exemption or deduction applies, while employee wages are exempt. TRD accepts the IRS determination of whether a worker is an employee or an independent contractor.","source":"https://www.tax.newmexico.gov/individuals/personal-income-tax-information-overview/independent-contractors-vs-employees"}],"notes":"Gig workers and freelancers in New Mexico usually owe both personal income tax and GRT on their service receipts. We found no TRD announcement of a state GRT rate change after the July 1, 2023 cut to 4.875%."},"stateRetirementProgram":{"state":"New Mexico","code":"NM","programName":"New Mexico Work and $ave","status":"enacted-not-launched","employerMandate":null,"mandateMin":null,"keyDates":"House Bill 44 enacted 2020 with a statutory implementation date of on or before July 1, 2024, which was missed. Launch is postponed indefinitely; 2026 legislation to move the program out of the Treasurer’s Office stalled.","covers1099":false,"selfEnroll":"yes","sourceUrl":"https://www.nmsto.gov/work-and-save","note":"Voluntary for both employers and employees — no mandate. The enabling act is unusual in explicitly covering the self-employed, but with the program on indefinite hold nobody is covered in practice.","lastVerified":"2026-09-09"},"city":null,"guides":[{"audience":"consultants","url":"https://gigaverse.ai/local/new-mexico/consultants"},{"audience":"freelancers","url":"https://gigaverse.ai/local/new-mexico/freelancers"},{"audience":"content-creators","url":"https://gigaverse.ai/local/new-mexico/content-creators"},{"audience":"entrepreneurs","url":"https://gigaverse.ai/local/new-mexico/entrepreneurs"},{"audience":"gig-workers","url":"https://gigaverse.ai/local/new-mexico/gig-workers"},{"audience":"tipped-workers","url":"https://gigaverse.ai/local/new-mexico/tipped-workers"},{"audience":"tradespeople","url":"https://gigaverse.ai/local/new-mexico/tradespeople"}],"disclaimer":"Educational information for 2026, not tax, legal or investment advice. Sources are cited per fact."}