New Mexico Estimated Tax Instructions

Estimated Tax Instructions
Form PIT-ES Instructions
INSTRUCTIONS FOR 2023 PIT-ES

NEW MEXICO ESTIMATED TAX PAYMENT VOUCHER
Who Must Pay Estimated Taxes?
Every individual who must file a personal income tax return
under the Income Tax Act also must pay estimated income
tax. This occurs through withholding taxes or by making estimated tax payments using the Personal Income Estimated
Tax Payment Voucher (PIT-ES). You can also pay by check
or credit card using the Department’s website.

required annual payment are due (postmark or delivery service date) by April 15, June 15, September 15, and January
15, of the following year.
For taxpayers reporting on a fiscal year basis, other than a
calendar year, payments are due on or before the 15th day
of the fourth, sixth, and ninth months of the tax year and on
or before the 15th day of the first month of the following year.
Sometimes a due date for an estimated payment is a Saturday or a Sunday, or a state or national legal holiday. The
estimated payment is on time when the postmark bears the
date of the next business day. Delivery by a private delivery service is on time if the pick-up date is on or before the
required due date.

There is a penalty for underpayment or non-payment of
estimated tax, unless:
•	 You are a first-year resident;
•	 Your tax for the current year, less amounts withheld, is
under $1,000; or
•	 You are a full-year New Mexico resident whose previous
tax year was a 12-month tax year and you owed zero
tax for that tax return.

Exceptions For Estimated Payment Amounts And
Timing
Special rules for determining the amount and timing of
each estimated payment apply to taxpayers who qualify for
exceptions.

Tax Estimation Methods
To calculate estimated taxes, you can use the standard method (described next) and, if you qualify, exception methods
(described later in these instructions). Taxpayers who qualify
for an exception may be able to reduce the amount of underpayment penalty owed by completing and submitting Form
RPD-41272, Calculation of Estimated Personal Income Tax
Underpayment Penalty, for the tax year of the return along
with the PIT-1 return. Do not submit Form RPD-41272 unless
it reduces the amount of underpayment penalty due under
the standard method of computing underpayment penalty.

If any of the following exceptions applies to you, you may be
able to reduce the underpayment penalty due by completing
and submitting RPD-41272, Calculation of Estimated Personal Income Tax Underpayment Penalty for the tax year
you are filing along with your PIT-1 return:
•	 You want to use the actual dates withholding tax was
withheld for the applicable tax year to calculate your
estimated payments.
•	 Your income varied during the year so you do not need
to pay estimated personal income tax until after March
31 of the tax year.
•	 You are a farmer or rancher who expects to receive 2/3 of
gross income for the tax year from farming or ranching, or
who has received at least 2/3 of gross income for the previous tax year from farming or ranching.

How Much Do You Need To Pay?
To calculate your estimated tax, start with the required annual payment or the total amount of estimated tax to pay
during the tax year. Then determine the amount and due
date for each estimated tax payment.
The required annual payment is the lesser of:
•	 90% of the tax on the current year’s return (or, if no
return is filed, the tax for the taxable year), or
•	 100% of the tax on the prior year’s return, if you filed a
return during the prior year for a full 12-month year.

Descriptions Of Exceptions And Number To Enter In
Box On Line 35, PIT-1
Read these descriptions to see if you qualify for an exception.
If you qualify, enter the number noted in the last paragraph
of the specific description.

To determine the required annual payment, calculate your
2023 tax by:
1.	Totaling these items on PIT-1:
•	 Rebates and credits claimed (line 24)
•	 Working families tax credit claimed (line 25)
•	 New Mexico income tax withheld (lines 27, 28, and 29)
2.	Subtracting this total from 2023 Net New Mexico Income
Tax (line 22).

Exception for applying actual tax withholding dates.
This exception applies to taxpayers who wish to compute
estimated payments according to the actual dates when all
amounts of withholding tax were withheld for the applicable
tax year.
Unless you establish on Form RPD-41272 the dates on
which all amounts were actually withheld, the Taxation and
Revenue Department considers an equal amount of tax withheld as tax paid on each installment due date. This provision
may apply separately to wage and pension withholding and
any other amounts withheld under the Withholding Tax Act.
Enter 1 if you want to calculate estimated payments based

NOTE: Always use the instructions specifically written for
the tax year you are filing because the line numbers and the
calculation of estimated tax may change from year to year.
When Are Calendar Year Or Fiscal Year Estimated Payments Due?
For most calendar-year taxpayers, four installments of the
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on the actual dates on which all amounts of withholding tax
were withheld for the applicable tax year. (If you qualify for
the exception for varying income or the exception for farmers and ranchers, enter a number from 2 to 5 as indicated
in the next descriptions.)

Internal Revenue Code (IRC) for individual income tax
purposes.
The IRC rate, which changes quarterly, is announced by the
IRS in the last month of the previous quarter. The annual
and daily interest rates for each quarter are posted on our
website at https://www.tax.newmexico.gov/individuals/fileyour-taxes-overview/penalty-interest-rates/.

Exception for income that varies during the year. This exception applies to taxpayers who receive seasonal income.
You may only use this method if actual income through
March 31 is too small to require an estimated payment.
When your base income increases in later periods, you must
make higher estimated payments to balance your account.

A special rule applies for calculating the underpayment or
non-payment penalty for personal estimated income tax.
The interest rate that applies to the 1st quarter following the
tax year also applies to the first 15 days of April following
the tax year.

No payment is due for the first quarter, because actual income through March 31 is too small to require an estimated
payment. Subsequent test dates to check income for estimated payments are May 31, August 31, and December 31.

This is the formula to calculate the amount of a standard
daily penalty:
penalty due = estimated tax payment
x daily interest rate x number of days late

If your income varies, enter 2, 3, or 4 to show the quarter you
are required to begin making estimated payments.

NOTE: The penalty for underpayment of estimated tax may
exceed the maximum 20% that applies to an underpayment
penalty for tax.

Exception for farmers and ranchers. The law provides a
special rule, identical to the federal rule, for farmers and
ranchers who expect to receive at least 2/3 of their gross
income from farming or ranching, or who received at least
2/3 of their gross income from farming or ranching in the
prior year. Farmers and ranchers who meet the gross income test may:
•	 Make one estimated payment in the amount of the required annual payment on or before January 15 of the
year following the tax year of the return, or
•	 File and pay taxes in full on or before March 1 of the year
following the tax year of the return.

To help calculate the underpayment penalty, you may use
Form RPD-41272, Calculation of Estimated Personal Income
Tax Underpayment Penalty. But do not submit the form unless:
•	 You qualify for a exception method of determining the
amount and timing of the estimated tax payment, and
•	 You will owe less penalty by using the exception method.
Only taxpayers who may lower their penalty using the exception method submit RPD-41272.

For joint returns, the farmer or rancher must count the
spouse’s gross income to determine whether the couple
meets the two-thirds-of-gross income test.

To calculate an underpayment or non-payment penalty using the exception method for estimated personal income
tax, you must enter 1, 2, 3, 4, or 5 in the box on line 35,
PIT-1. If the box is blank, the penalty is calculated using the
standard method.

Enter 5 if you are a farmer or rancher and meet these
requirements. Make this entry, even if you do not owe an
underpayment penalty because you filed and paid the tax in
full on or before March 1 of the year following the tax year
of the return.

How To Avoid A Penalty
If you file a return and pay the full amount on or before January 31 of the next year, no penalty applies to the 4th quarter
payment. If the balance due is $1,000 or more, the Taxation
and Revenue Department determines whether the required
annual payment was made in timely installments. If the payment was made on time, there is no penalty.

Penalty For Underpayment Or Non-Payment Of Estimated Tax Payments
The penalty for underpayment or non-payment of estimated
tax is based on the difference between the estimated tax
payment and the actual amount of estimated tax due.
Penalty accumulates from the due date of the estimated tax
payment until the earlier of:
•	 The date the payment is made, or
•	 The 15th day of the fourth month following the close of
the tax year.

If you believe an assessment is in error, you can protest the
assessment and provide more information.
More Information And Help
For more information, see FYI-320, PIT-ES: Personal Income Estimated Tax Payments. At page https://www.tax.
newmexico.gov/forms-publications/, select FYIs from the
Publications folder. Open the 300 Series-Income Taxes
folder to access FYI-320. Download a copy of the publication, or send an e-mail to [email protected]
for more information.

New Mexico calculates the penalty (in the form of interest)
on underpayment of estimated tax at the same rate as interest on an underpayment of tax. The penalty is calculated
on a daily basis at the interest rate established by the U.S.
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as shown on your tax return.
6.	 Calculate the estimated payment.
7.	 Using the tax rate tables for the applicable tax year,
determine the amount of estimated tax you owe and
the amount of payments, if any, made to date. Include
any overpayments from the prior year’s return you want
to apply to the current year’s estimated tax payments.
If you need help calculating the estimated payments,
see Form RPD-41272, Calculation of Estimated Personal Income Tax Underpayment Penalty, or FYI-320,
PIT-ES: Personal Income Tax Estimated Payments.
8.	 Mark quarter and enter amount.
9.	 Mark the box for the quarter of your estimated payment. If you are a fiscal year filer, mark the box for the
quarter that compares to a calendar year.
10.	 Using whole dollars only, enter the amount you are
submitting with the PIT-ES. Do not enter or pay cents.
11.	 Cut on the voucher’s dotted line.
12.	 The high-speed scanners at the Department can read
only one page size to process payment vouchers.
Make sure to cut directly on the dotted line.
13.	 Keep a copy in a safe place.
14.	 To prepare your personal income tax return, you need
a copy or record of each PIT-ES payment. Place your
copy in a safe place where you can easily find it.
15.	 Follow our mailing requirements.
16.	 If you mail your payment, make your check or money
order payable to New Mexico Taxation and Revenue
Department. Write your social security number, PITES, and the tax year on the check or money order. Using your own envelope, enclose the check or money order and the completed PIT-ES payment voucher. Mail
the envelope to:

Methods Of Payment
You can make an electronic payment online or mail a check
or money order.
Pay Online. You may submit a payment with the payment
voucher by mail or pay estimated personal income taxes
online at no charge by electronic check through Taxpayer
Access Point (TAP). Go to https://tap.state.nm.us and under
GENERAL TASKS, click Make a Payment, then Individual.
The electronic check authorizes the Department to debit your
checking account in the amount and on the date you specify.
You may also use a credit card for your online payment. A
convenience fee is applied for using a credit card. The State
of New Mexico uses this fee, calculated on the transaction
amount, to pay charges from the credit card companies.
Pay By Mail. Mail your payment voucher and your check
or money order to the Department, following the mailing
requirements in step 7.
Paying With A Check. When you provide a check as payment, you authorize the Department to use information from
your check to make a one-time electronic fund transfer from
your account. When we use information from your check to
make an electronic fund transfer, funds may be withdrawn
from your account as soon as the same day you make your
payment.
Where To Get The Voucher
You can get the PIT-ES payment voucher from your personal
income tax packet, the Department website, one of the
Department’s district offices, or your tax return preparation
software. To avoid misapplication of your payment, make
sure the tax year is correct on the voucher.

NM Taxation and Revenue Dept.
P.O. Box 8390
Santa Fe, NM 87504-8390

Use Only Blue Or Black Ink. Type or print all entries in blue
or black ink. Do not use pencil.

IMPORTANT: For proper credit on your account, do not
combine a payment of estimated personal income tax with
any other payment.

Completing And Submitting The Voucher And Payment
Follow the next steps to complete and submit your voucher
and payment.
1.	 Check the year and enter date.
2.	 For the Department to apply your estimated payment
to the correct tax year, the PIT-ES voucher must show
the tax year for which you are making payment. On the
payment voucher from the Department website, write
in the tax year. Make sure all payment vouchers show
the correct tax year.
3.	 If you are a calendar-year filer making an estimated
payment for a 2024 tax return due in 2025, make sure
the date on your PIT-ES payment voucher indicates
that the last day of the tax year is 2024.
4.	 Enter identification information.
5.	 Enter your name and social security number. If you expect to file a joint return, enter your spouse’s name and
social security number. To speed processing, enter the
names and social security numbers in the same order
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A taxpayer who does not make sufficient payments for a
tax year may receive an assessment of penalty for underpayment of New Mexico personal income tax, even if
the full tax amount owed is paid on time with the annual
income tax return. To avoid underpayment penalty you
may be required to make estimated tax payments. Read
these instructions for more information.
Calendar-year taxpayers: The first estimated payment due
for tax year 2024 is April 15, 2024. The next payments are
due June 15, 2024; September 15, 2024; and January 15,
2025. Fiscal-year taxpayers: Dates vary.
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