OnlyFans Creator Taxes in New Mexico - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a OnlyFans Creator in New Mexico

The Land of Enchantment offers a unique backdrop for digital content creation, but navigating the tax landscape as an OnlyFans creator requires careful attention. Income earned through platforms like OnlyFans is considered self-employment income by the IRS, meaning creators are responsible for reporting earnings and paying all applicable taxes.

Federally, all income received through OnlyFans must be reported on Schedule C (Profit or Loss from Business) when filing Form 1040. Crucially, if net earnings (income minus business expenses) exceed $400, self-employment tax applies. This covers both Social Security and Medicare contributions for self-employed individuals, functioning as the equivalent of employer and employee portions.

How New Mexico Handles Gig Worker Taxes

As a resident of New Mexico, a state income tax return is required regardless of income level. New Mexico utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, New Mexico’s income tax rates range from 1.7% to 4.9% depending on your taxable income. The primary form for self-employed individuals to report income and calculate tax liability is Form W-4 and Form NMPR-2, New Mexico Resident Income Tax Return. New Mexico also requires the filing of Schedule IN, Income Adjustments, to report certain deductions and adjustments to federal adjusted gross income.

New Mexico also has a compensating tax, which is a tax on gross receipts. While generally not applicable to individual income, it's important to be aware of it if your OnlyFans business expands to include significant sales of tangible goods. New Mexico’s Department of Taxation and Revenue provides detailed information and resources for self-employed individuals, including estimated tax payment requirements. It is crucial to make estimated tax payments quarterly to avoid penalties, as income from OnlyFans is not subject to withholding. The New Mexico Department of Taxation and Revenue website is a valuable resource: https://www.tax.newmexico.gov/. Remember to keep meticulous records of all income and expenses to accurately complete your state tax return.

Key Tax Deductions for Home-Based OnlyFans Creators

• Home Office Deduction: To claim the home office deduction, the space must be used exclusively and regularly for business. “Exclusive use” means that portion of your home is used solely for your OnlyFans work – it cannot double as a guest room or family space. “Regular use” means you use the space consistently for your business. You can calculate the deduction using the simplified method ($5 per square foot, up to 300 square feet) or the actual expense method (calculating a percentage of your mortgage/rent, utilities, etc., based on the square footage used for business).
• Hardware & Software: The cost of equipment essential to your OnlyFans business is deductible. This includes computers, cameras, lighting, microphones, and any necessary software subscriptions like Adobe Creative Cloud, video editing software, or website hosting.
• Internet & Phone Bill: If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to business use. For example, if 75% of your internet usage is for OnlyFans content creation and promotion, you can deduct 75% of your internet bill.

Note on Mileage: As a predominantly home-based worker, mileage deductions are less common. However, if you occasionally travel for work-related purposes – such as meeting with collaborators or attending industry events – you can deduct those miles using the standard mileage rate (set annually by the IRS).

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax is comprised of two components: 12.4% for Social Security and 2.9% for Medicare. This tax covers both the employer and employee portions of these taxes, as you are both the employer and employee when self-employed. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).