Use this skill whenever asked about New Mexico individual income tax for self-employed / sole proprietors. Trigger on phrases like "New Mexico income tax", "NM income tax", "Form PIT-1", "NM Taxation and Revenue", "NM self-employment tax".
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Metadata table
| Field | Value | |---|---| | Tax type | Individual income tax (Personal Income Tax) | | Jurisdiction | New Mexico (US-NM) | | Tax year | 2025 (filed 2026) | | Primary form | Form PIT-1 | | Supporting schedules | Schedule PIT-B (Nonresident/Part-year), Schedule PIT-CR (Credits), Schedule PIT-ADJ (Adjustments) | | Tax structure | Graduated (6 brackets) | | Rate range | 1.5% – 5.9% | | Filing deadline | April 15, 2026 | | Extension deadline | October 15, 2026 (automatic with federal extension) | | Tax authority | New Mexico Taxation and Revenue Department | | Website | https://www.tax.newmexico.gov | | Statute | N.M. Stat. Ann. §7-2-7 (Income Tax Act) |
Tax brackets — Single / Estates and trusts (TY 2025)
| Taxable income over | But not over | Rate | Tax on lower amount | |---|---|---|---| | $0 | $5,500 | 1.5% | $0 | | $5,500 | $16,500 | 3.2% | $82.50 | | $16,500 | $33,500 | 4.3% | $434.50 | | $33,500 | $66,500 | 4.7% | $1,165.50 | | $66,500 | $210,000 | 4.9% | $2,716.50 | | $210,000 | — | 5.9% | $9,748 |
Tax brackets — MFJ / HOH / QSS (TY 2025)
| Taxable income over | But not over | Rate | Tax on lower amount | |---|---|---|---| | $0 | $8,000 | 1.5% | $0 | | $8,000 | $25,000 | 3.2% | $120 | | $25,000 | $50,000 | 4.3% | $664 | | $50,000 | $100,000 | 4.7% | $1,739 | | $100,000 | $315,000 | 4.9% | $4,089 | | $315,000 | — | 5.9% | $14,624 |
Tax brackets — Married filing separately (TY 2025)
| Taxable income over | But not over | Rate | Tax on lower amount | |---|---|---|---| | $0 | $4,000 | 1.5% | $0 | | $4,000 | $12,500 | 3.2% | $60 | | $12,500 | $25,000 | 4.3% | $332 | | $25,000 | $50,000 | 4.7% | $869.50 | | $50,000 | $157,500 | 4.9% | $2,044.50 | | $157,500 | — | 5.9% | $7,312 |
Standard deduction (TY 2025)
| Filing status | Standard deduction (TY 2025) | |---|---| | Single | $15,750 (federal amount — verify) | | Married filing jointly | $31,500 (federal amount — verify) | | Head of household | $23,625 (federal amount — verify) |
Scope. This skill covers New Mexico Form PIT-1 (Personal Income Tax Return) for full-year NM residents who are sole proprietors or single-member LLC owners. Tax year 2025 (returns filed in 2026). New Mexico uses a six-bracket graduated rate structure ranging from 1.5% to 5.9%, restructured under HB 252 effective 2025.
Quality tier. Q3 — AI-drafted, not independently verified. All outputs must be reviewed by a qualified tax professional before filing.
Metadata table
| Field | Value |
|---|---|
| Tax type | Individual income tax (Personal Income Tax) |
| Jurisdiction | New Mexico (US-NM) |
| Tax year | 2025 (filed 2026) |
| Primary form | Form PIT-1 |
| Supporting schedules | Schedule PIT-B (Nonresident/Part-year), Schedule PIT-CR (Credits), Schedule PIT-ADJ (Adjustments) |
| Tax structure | Graduated (6 brackets) |
| Rate range | 1.5% – 5.9% |
| Filing deadline | April 15, 2026 |
| Extension deadline | October 15, 2026 (automatic with federal extension) |
| Tax authority | New Mexico Taxation and Revenue Department |
| Website | https://www.tax.newmexico.gov |
| Statute | N.M. Stat. Ann. §7-2-7 (Income Tax Act) |
Sources:
Tax brackets — Single / Estates and trusts (TY 2025)
| Taxable income over | But not over | Rate | Tax on lower amount |
|---|---|---|---|
| $0 | $5,500 | 1.5% | $0 |
| $5,500 | $16,500 | 3.2% | $82.50 |
| $16,500 | $33,500 | 4.3% | $434.50 |
| $33,500 | $66,500 | 4.7% | $1,165.50 |
| $66,500 | $210,000 | 4.9% | $2,716.50 |
| $210,000 | — | 5.9% | $9,748 |
Tax brackets — MFJ / HOH / QSS (TY 2025)
| Taxable income over | But not over | Rate | Tax on lower amount |
|---|---|---|---|
| $0 | $8,000 | 1.5% | $0 |
| $8,000 | $25,000 | 3.2% | $120 |
| $25,000 | $50,000 | 4.3% | $664 |
| $50,000 | $100,000 | 4.7% | $1,739 |
| $100,000 | $315,000 | 4.9% | $4,089 |
| $315,000 | — | 5.9% | $14,624 |
Tax brackets — Married filing separately (TY 2025)
| Taxable income over | But not over | Rate | Tax on lower amount |
|---|---|---|---|
| $0 | $4,000 | 1.5% | $0 |
| $4,000 | $12,500 | 3.2% | $60 |
| $12,500 | $25,000 | 4.3% | $332 |
| $25,000 | $50,000 | 4.7% | $869.50 |
| $50,000 | $157,500 | 4.9% | $2,044.50 |
| $157,500 | — | 5.9% | $7,312 |
New Mexico follows the federal standard deduction amounts (NM conforms to federal for this purpose).
Standard deduction (TY 2025)
| Filing status | Standard deduction (TY 2025) |
|---|---|
| Single | $15,000 (federal amount — verify) |
| Married filing jointly | $30,000 (federal amount — verify) |
| Head of household | $22,500 (federal amount — verify) |
New Mexico taxable income starts with federal adjusted gross income (FAGI) from federal Form 1040, Line 11.
Key addition modifications
| Addition | Description |
|---|---|
| Lump-sum distributions | Certain lump-sum distributions not included in federal AGI |
| NM income not in federal AGI | Income taxable by NM but excluded from federal return |
Key subtraction modifications
| Subtraction | Description |
|---|---|
| US government bond interest | Interest from US Treasury obligations |
| Social Security | NM does not tax Social Security benefits |
| Military retirement pay | Exempt for certain qualifying individuals |
| Age 65+ income exemption | Up to $8,000 for 65+ with AGI under $51,000 (single) or $36,667 (MFJ per spouse) |
Estimated tax installment due dates
| Installment | Due date |
|---|---|
| 1st quarter | April 15 |
| 2nd quarter | June 15 |
| 3rd quarter | September 15 |
| 4th quarter | January 15 (following year) |
Form PIT-ES is used for estimated tax payments.
Supplier pattern library
| Input needed | Where to find it |
|---|---|
| Federal AGI | Federal Form 1040, Line 11 |
| NM additions | PIT-1 / Schedule PIT-ADJ |
| NM subtractions | PIT-1 / Schedule PIT-ADJ |
| Standard/itemized deduction | Federal amounts (NM conforms) |
| Low-and-middle-income exemption | Based on AGI and number of exemptions |
| Tax credits and rebates | Schedule PIT-CR |
| Estimated tax payments | PIT-ES records |
| NM withholding | W-2 Box 17 / 1099 NM withholding amounts |
| Federal EIC amount | Federal Schedule EIC / Form 1040 (for NM WFTC calculation) |
Form PIT-1 line mapping
| Form PIT-1 Line | Description | Source |
|---|---|---|
| Line 7 | Federal adjusted gross income | Federal 1040, Line 11 |
| Line 8 | NM additions | Schedule PIT-ADJ |
| Line 10 | NM subtractions | Schedule PIT-ADJ |
| Line 13 | NM exemptions (low-and-middle-income, blind, aged) | Computed |
| Line 15 | Standard or itemized deduction | Federal amount |
| Line 17 | NM taxable income | Computed |
| Line 18 | NM income tax | From rate schedule |
| Line 21 | Credits and rebates | Schedule PIT-CR |
| Line 25 | NM withholding | W-2s / 1099s |
| Line 26 | Estimated tax payments | PIT-ES payments |
| Line 31 | Amount owed or refund | Computed |
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon.
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Other New Mexico computations in the OpenAccountants Tax Library.
Low-and-middle-income exemption
New Mexico offers a low-and-middle-income exemption of up to $2,500 per qualified exemption, based on adjusted gross income. All taxpayers (residents, part-year residents, nonresidents) may claim this exemption.
Local income tax
New Mexico does not permit local income taxes.
Key addition modifications
| Addition | Description | |---|---| | Lump-sum distributions | Certain lump-sum distributions not included in federal AGI | | NM income not in federal AGI | Income taxable by NM but excluded from federal return |
Key subtraction modifications
| Subtraction | Description | |---|---| | US government bond interest | Interest from US Treasury obligations | | Social Security | NM does not tax Social Security benefits | | Military retirement pay | Exempt for certain qualifying individuals | | Age 65+ income exemption | Up to $8,000 for 65+ with AGI under $51,000 (single) or $36,667 (MFJ per spouse) |
Self-employment income flow
Schedule C net profit flows into federal AGI, which is the starting point for NM. NM follows the federal self-employment tax deduction (deductible half of SE tax) through federal AGI.
Estimated tax threshold
NM requires estimated tax payments if you expect to owe $1,000 or more after subtracting withholding and credits.
Estimated tax installment due dates
| Installment | Due date | |---|---| | 1st quarter | April 15 | | 2nd quarter | June 15 | | 3rd quarter | September 15 | | 4th quarter | January 15 (following year) |
GRT interaction
Self-employed taxpayers in NM are also subject to the Gross Receipts Tax (GRT), which is NM's equivalent of a sales/use tax but is imposed on the seller's gross receipts. Unlike a traditional sales tax, the GRT is imposed on the business (not the buyer), though it is commonly passed through to customers. - GRT applies to most services as well as goods (unlike most state sales taxes). - Rates vary by location (combined state + local: approximately 5.0% to 9.4375%). - Self-employed service providers must register for and collect/remit GRT. - GRT paid is deductible as a business expense on the federal Schedule C.
NM Working Families Tax Credit
NM offers a refundable earned income credit equal to 25% of the federal Earned Income Credit (EIC) for TY 2025. This is particularly valuable for lower-income self-employed taxpayers.
NM-T1-01
NM taxable income = federal AGI ± NM modifications − exemptions − deductionsN.M. Stat. Ann. §7-2-2
NM-T1-02
Tax computed using 6-bracket schedule: 1.5%–5.9% (TY 2025)N.M. Stat. Ann. §7-2-7; HB 252
NM-T1-03
Starting point is federal AGI (Form 1040, Line 11)N.M. Stat. Ann. §7-2-2
NM-T1-04
Social Security benefits fully exemptN.M. Stat. Ann. §7-2-2(S)
NM-T1-05
Low-and-middle-income exemption: up to $2,500 per qualified exemptionN.M. Stat. Ann. §7-2-5.6
NM-T1-06
NM Working Families Tax Credit = 25% of federal EIC (refundable)N.M. Stat. Ann. §7-2-18.16
NM-T1-07
Estimated tax required if expected liability ≥ $1,000N.M. Stat. Ann. §7-2-12.2
NM-T1-08
NM follows federal standard deduction amountsN.M. Stat. Ann. §7-2-2
NM-T2-01
Multi-state income: Taxpayer has income from another stateNM taxes worldwide income of residents. Credit for taxes paid to other states available on Schedule PIT-CR.
NM-T2-02
GRT vs. income tax interactionGRT is a separate tax on gross receipts, not a credit against income tax. GRT paid is deductible as a business expense on federal Schedule C, which flows through to NM.
NM-T2-03
Technology jobs tax creditNM offers credits for qualifying technology businesses. Requires certification.
NM-T2-04
Angel investment creditNM allows credits for qualified investments in NM small businesses. Requires approval from NM Economic Development Department.
NM-T2-05
Federal IRC conformityNM's conformity with the IRC should be verified for recent federal changes. NM generally has rolling conformity but may decouple from specific provisions.
NM-T2-06
Community propertyNew Mexico IS a community property state. MFS returns require community property income allocation.
Supplier pattern library
| Input needed | Where to find it | |---|---| | Federal AGI | Federal Form 1040, Line 11 | | NM additions | PIT-1 / Schedule PIT-ADJ | | NM subtractions | PIT-1 / Schedule PIT-ADJ | | Standard/itemized deduction | Federal amounts (NM conforms) | | Low-and-middle-income exemption | Based on AGI and number of exemptions | | Tax credits and rebates | Schedule PIT-CR | | Estimated tax payments | PIT-ES records | | NM withholding | W-2 Box 17 / 1099 NM withholding amounts | | Federal EIC amount | Federal Schedule EIC / Form 1040 (for NM WFTC calculation) |
Form PIT-1 line mapping
| Form PIT-1 Line | Description | Source | |---|---|---| | Line 7 | Federal adjusted gross income | Federal 1040, Line 11 | | Line 8 | NM additions | Schedule PIT-ADJ | | Line 10 | NM subtractions | Schedule PIT-ADJ | | Line 13 | NM exemptions (low-and-middle-income, blind, aged) | Computed | | Line 15 | Standard or itemized deduction | Federal amount | | Line 17 | NM taxable income | Computed | | Line 18 | NM income tax | From rate schedule | | Line 21 | Credits and rebates | Schedule PIT-CR | | Line 25 | NM withholding | W-2s / 1099s | | Line 26 | Estimated tax payments | PIT-ES payments | | Line 31 | Amount owed or refund | Computed |
R-NM-01
Part-year or nonresident"NM part-year and nonresident returns require Schedule PIT-B. This is outside the scope of this skill."
R-NM-02
Corporate return"This skill covers personal income tax only (Form PIT-1). Corporate income tax (CIT) is not covered."
R-NM-03
Fiduciary return"NM fiduciary returns (Form FID-1) are not covered by this skill."
R-NM-04
Amended return"NM amended returns (amended PIT-1) are not covered."
R-NM-05
GRT computation"NM Gross Receipts Tax is a separate tax. See nm-sales-tax.md for GRT details."
R-NM-06
Oil and gas taxation"NM oil, gas, and mineral taxation (severance taxes, conservation taxes) requires specialist review."
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
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