New Mexico Side Hustle Tax Calculator
Calculate your New Mexico state tax (4.90%), federal tax, and self-employment tax on 1099 income.
Last updated: January 2026 · Data from IRS Rev Proc 2024-40
New Mexico side hustlers face a progressive income tax with rates from 1.5% to 5.9%. The Land of Enchantment has six tax brackets and no local income taxes. New Mexico offers some unique deductions that can benefit freelancers, including capital gains deductions for certain business sales.
How Side Hustle Taxes Work in New Mexico
New Mexico uses a six-bracket progressive system:
**New Mexico state tax rates (2025):** - 1.5% on income up to $5,500 (single) - 3.2% on income $5,500-$11,000 - 4.7% on income $11,000-$16,000 - 4.9% on income $16,000-$210,000 - 5.9% on income over $210,000
**No local income taxes:** - Albuquerque and all NM cities have no income taxes - Only the state rate applies
What New Mexico Side Hustlers Owe
Let's say you're a single filer in Albuquerque with a $50,000 W-2 job and $15,000 in side hustle income from freelance video production, with $2,500 in business expenses.
**Your estimated taxes on the side hustle:** - Net self-employment income: $12,500 - Federal SE tax (15.3% of 92.35%): ~$1,768 - Federal income tax on side income: ~$2,750 (22% bracket) - New Mexico state tax (4.9%): ~$613 - **Total additional tax: ~$5,131**
New Mexico Tax Deadlines 2025
New Mexico estimated tax deadlines: - **Q1**: April 15, 2025 - **Q2**: June 16, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026
Use New Mexico Form PIT-ES for state estimated tax payments.
Common Deductions for New Mexico Freelancers
New Mexico deductions for freelancers: - New Mexico starts with federal adjusted gross income - All Schedule C business expenses apply - Home office expenses - Business mileage (67 cents/mile for 2025) - Capital gains deduction for business property sales
New Mexico Side Hustle Tax FAQ
What is New Mexico's tax rate on side hustles?
Most side hustlers pay New Mexico's 4.9% rate on income between $16,000-$210,000. The 5.9% rate only applies to very high earners.
Does Albuquerque have a city income tax?
No, Albuquerque and all New Mexico cities do not have local income taxes. You only pay the state tax rate.
Does New Mexico have any special deductions?
Yes, New Mexico offers a capital gains deduction for certain business property sales and has various credits for low-to-moderate income taxpayers.
Related State Calculators
Compare New Mexico's 4.90% rate with these other states popular with freelancers and gig workers.
Return to main calculator to compare all 50 states
Side Hustle Calculators by State
All 50 states plus DC available. Return to main calculator or select a state above.
Ready to calculate your taxes?
This calculator provides estimates only. For personalized advice, consult a qualified tax professional.
Calculate My New Mexico Taxes ↑