TIN ComplianceA resource from TIN Comply
Backup withholding
No
Nonresident payments
Yes, 4.9%
Threshold
$30
Forms
RPD-41284, RPD-41285, RPD-41353
State withholding

New Mexico backup withholding and nonresident contractor withholding

New Mexico withholds on oil and gas proceeds. The Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act (NMSA 1978 7-3A) requires remitters to withhold 4.9 percent of net proceeds from New Mexico wells paid to nonresident remittees, unless payments to the remittee are $30 or less in the quarter or the remittee signs Form RPD-41353 agreeing to pay the tax itself. Returns are Form RPD-41284 quarterly by the 25th of the following month, with Form RPD-41285 or a 1099-MISC to each remittee. No backup withholding or nonresident contractor rule was located.

State backup withholding not requiredNonresident non-wage withholding requiredSources checked November 1, 2026Updated November 1, 2026
In this guide
  1. Status
  2. Withholding on non-wage payments to nonresidents
  3. What New Mexico does not require
  4. Pass-through entity withholding
  5. What to confirm
  6. Sources

Status

State backup withholdingNot required (inferred)

Inferred: no provision found in the saved statute or guide

Non-wage payments to nonresidentsRequired

Primary source (statute, regulation or agency publication saved in full)

Federal backup withholding under IRC 3406 (24 percent on a missing or mismatched TIN) applies in New Mexico exactly as everywhere else; this page covers only what the state adds. The 50-state tables put New Mexico next to its neighbours, and the New Mexico 1099 filing page covers whether the state wants its own copy of the 1099.

Withholding on non-wage payments to nonresidents

Applies to
Oil and gas proceeds only: remitters paying proceeds (royalties, working interest payments) from New Mexico wells to nonresident remittees (individuals and entities). No general nonresident contractor or entertainer withholding.
Threshold
No withholding if the total payments to a remittee in the calendar quarter are $30 or less
Rate
4.9% of the net oil and gas proceeds (rate since January 1, 2008)
Statute
NMSA 1978 7-3A-1 et seq. (Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act); Bulletin B-200.13
Withholding return
Form RPD-41284 (Quarterly Oil and Gas Proceeds Withholding Tax Return) due the 25th of the month after quarter end; RPD-41283 annual summary kept by the remitter
Exemption certificate or waiver
Form RPD-41353 (Owner's or Remittee's Agreement to Pay Withholding on Behalf of a Pass-Through Entity or Remitter); RPD-41374 annual report of remittees with agreements; exceptions for New Mexico residents/domestic corporations, 501(c)(3) organizations, government, tribes
Payee statement
Form RPD-41285 (Annual Statement of Withholding of Oil and Gas Proceeds) or federal 1099-MISC to each remittee; electronic filing required with more than 50 payees
Due dates
RPD-41284 quarterly by the 25th of the month after the quarter; annual statements and RPD-41374 by the last day of February
Exceptions
Remittee with a New Mexico address or incorporated in New Mexico; $30 or less per quarter; remittees with a signed RPD-41353 agreement; 501(c)(3) organizations; federal, state and tribal governments

What New Mexico does not require

State backup withholding

No state backup withholding: NMSA 1978 ch. 7, art. 3 (Withholding Tax Act) covers wages, pensions and gambling; no backup-withholding provision located

Basis: Inferred: no provision found in the saved statute or guide.

Pass-through entity withholding (out of scope)

Same Act requires pass-through entities to withhold 5.9% (individual) / 5.9% on net income allocable to nonresident owners (Form RPD-41367). Entity-level withholding on distributions to nonresident owners is a duty of the entity, not of a payer, and is not covered on this page.

What to confirm

  • The statute text could not be captured (the state’s code site is script-rendered); the facts come from the Taxation and Revenue Department’s program page, Bulletin B-200.13 and the RPD-41284 instructions.

Sources

Each source below was read and saved on November 1, 2026; the page is built from the saved text. Statutes are cited to the section; department pages and publications to their title and, where shown, revision date.

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