Estimate your self-employment tax in Albuquerque for 2026: the 15.3% SE tax, the deductible half, federal income tax, state income tax, and quarterly payments.
Last updated: May 2026 · Data: MIT Living Wage Calculator, C2ER, U.S. Census, BLS, IRS, state and city sources
Albuquerque self-employed workers pay federal SE tax and federal income tax, plus New Mexico state income tax (1.7% to 5.9%). New Mexico uses a Gross Receipts Tax (GRT) instead of a traditional sales tax. The state fully exempts Social Security benefits from income tax and has relatively low LLC formation costs.
| Net Profit | SE Tax | Half-SE Deduction | Total Est. Tax | Per Quarter |
|---|---|---|---|---|
| $30,000 | $4,239 | $2,119 | $5,904 | $1,476 |
| $50,000 | $7,065 | $3,532 | $11,865 | $2,966 |
| $75,000 | $10,597 | $5,299 | $19,946 | $4,987 |
| $100,000 | $14,130 | $7,065 | $29,729 | $7,432 |
| $150,000 | $21,194 | $10,597 | $49,714 | $12,429 |
Single filer, standard deduction. Total tax = SE tax + federal income tax + New Mexico state tax. Estimates only.
Albuquerque is the largest city in New Mexico, anchored by Kirtland Air Force Base and Sandia National Laboratories, with an economy spanning defense and research, healthcare, a growing film-production industry, and tourism along the Rio Grande.
| Local Metric | Albuquerque (2026 estimate) |
|---|---|
| Metro population | 560,000 |
| County / jurisdiction | Bernalillo County |
| Cost of living index (US avg = 100) | 94 |
| MIT living wage, single adult | $20.00/hour |
| MIT living wage, one earner supporting a family of four | $40.50/hour |
| Applicable minimum wage | $12.50/hour |
| Average rent, 1-bedroom | $1,150/month |
| Average rent, 2-bedroom | $1,400/month |
| Median home price | $320,000 |
| Median household income | $60,000/year |
| Combined Gross Receipts Tax rate | 7.75% |
| Effective property tax rate | 0.85% of value/year |
Local figures are 2026 estimates compiled from the MIT Living Wage Calculator, the C2ER Cost of Living Index, U.S. Census and Zillow housing data, and city and county sources. Verify current figures before relying on them.
The federal SE tax rate is 15.3% (12.4% Social Security plus 2.9% Medicare), the same in Albuquerque as everywhere. It applies to 92.35% of net profit; Social Security stops at $176,100 of net earnings.
New Mexico taxes self-employment income as ordinary income (1.7% to 5.9%), so Albuquerque freelancers owe state tax on top of federal.
On $60,000 of net profit in Albuquerque, estimated total tax (SE plus federal plus state) is about $14,848, or roughly $3,712 per quarter.
Albuquerque does not levy a local self-employment or income tax. Business owners should still budget for any required local license.
Business expenses that lower net profit (equipment, software, home office, mileage) reduce both SE tax and income tax. The deductible half of SE tax, self-employed health insurance, and retirement contributions reduce income tax.