TaxWrenTaxes for New Mexico freelancers in 2026
Single filers get a standard deduction of $16,100 ($32,200 married filing jointly).
On $85,000 of 1099 profit, a single filer owes about $2,547 in New Mexico income tax on top of $17,800 in federal taxes. That ranks 20th lowest of 51 (50 states and DC), $182 less than the median state.
Among its neighbors, Texas and Arizona would tax the same income less, while Colorado and Oklahoma would tax it more.
New Mexico income tax brackets for 2026
| Rate | Single: taxable income over | Married jointly: over |
|---|---|---|
| 1.5% | $0 | $0 |
| 3.2% | $5,500 | $8,000 |
| 4.3% | $16,500 | $25,000 |
| 4.7% | $33,500 | $50,000 |
| 4.9% | $66,500 | $100,000 |
| 5.9% | $210,000 | $315,000 |
New Mexico vs. neighboring states
Tax on $85,000 of 1099 profit for a single filer in 2026. The median across all 50 states and DC is $2,729 of state income tax.
| State | State tax | Total tax | Take-home |
|---|---|---|---|
| New Mexico | $2,547 | $20,347 | $64,653 |
| Arizona | $1,572 | $19,372 | $65,628 |
| Colorado | $2,767 | $20,567 | $64,433 |
| Oklahoma | $3,009 | $20,809 | $64,191 |
| Texas | $0 | $17,800 | $67,200 |
How New Mexico taxes changed
For 2026, New Mexico raised the single standard deduction from $15,750 to $16,100. State tax on $85,000 of 1099 profit falls from $2,564 to $2,547 (−$16).
| 2025 | 2026 | |
|---|---|---|
| Top income tax rate | 5.9% | 5.9% |
| Standard deduction (single) | $15,750 | $16,100 |
| State tax on $85,000 of 1099 profit | $2,564 | $2,547 |
| Take-home on a $75,000 salary | $58,938 | $59,233 |
Each year uses that year's federal and New Mexico rules, so the take-home row also reflects federal changes. Federal changes · All data updates
What this estimate simplifies
- In lieu of the suspended personal exemption, New Mexico offers a deduction of $4,000 for all but one of a taxpayer’s dependents.
Sources: New Mexico revenue department, Tax Foundation, State Individual Income Tax Rates and Brackets, IRS Rev. Proc. 2025-32. See our methodology.
New Mexico 1099 tax FAQ
Does New Mexico have a state income tax?
New Mexico has a graduated income tax with 6 rates from 1.5% to 5.9%; the top rate starts at $210,000 of taxable income for single filers.
How much should a freelancer in New Mexico set aside for taxes?
A single filer with $85,000 of 1099 profit and no other income should set aside about 24% of every payment in 2026: $12,010 self-employment tax, $5,790 federal income tax and $2,547 New Mexico income tax. Use the calculator for your own income, expenses and filing status.
What is the top New Mexico income tax rate in 2026?
5.9%. New Mexico has a graduated income tax with 6 rates from 1.5% to 5.9%; the top rate starts at $210,000 of taxable income for single filers.
Do I need to make estimated tax payments to New Mexico?
Generally yes, if you expect to owe state tax that is not covered by withholding. New Mexico sets its own thresholds and due dates; check the New Mexico revenue department's estimated payment rules.