Live in New Mexico, Work Remotely for a Nevada Employer: Who Taxes You?
Answer
New Mexico taxes the income and Nevada cannot. Residency, not the location of the job, drives this answer: New Mexico reaches all of a resident's income, and Nevada has no personal income tax to apply to the part earned inside its borders.
Last verified
The instinct that working in a no-tax state means paying no tax is the single most expensive misunderstanding in this niche. Nevada takes nothing, but New Mexico still taxes residents on income earned anywhere, so the full amount lands on your New Mexico return.
What you file
- 1Resident return · New Mexico
File a New Mexico resident return reporting all of your income.
The two states, side by side
| New Mexico | Nevada | |
|---|---|---|
| Taxes wages | Yes — graduated | No |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Form PIT-1 with Schedule PIT-B | Not applicable |
| Credit for other-state tax | Form PIT-1 (credit for taxes paid to another state) | No income tax |
| Nonresident safe harbour | None published | Not applicable |
| Local income tax | No | No |
| Revenue department | New Mexico Taxation and Revenue Department | Nevada Department of Taxation |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Nevada and working in New Mexico gives:No state income tax on your wages.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- W-2 commuter: New Mexico → NevadaHome state only
- 1099 contractor: New Mexico → NevadaHome state only — estimated payments
- Moved mid-year: New Mexico → NevadaOne part-year return — the state you left
Other New Mexico pairs
Questions people actually ask
I live in New Mexico and work remotely for a Nevada employer. Which state do I pay?
New Mexico taxes the income and Nevada cannot. Residency, not the location of the job, drives this answer: New Mexico reaches all of a resident's income, and Nevada has no personal income tax to apply to the part earned inside its borders.
Which state should my employer be withholding for?
New Mexico. Your employer should withhold New Mexico tax rather than Nevada tax on these wages. If a Nevada line is showing on your pay stub, raise it with payroll now rather than at filing time.
How current is this?
The New Mexico and Nevada rules on this page were last checked against New Mexico Taxation and Revenue Department and Nevada Department of Taxation on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- New Mexico Taxation and Revenue Department — individual income taxaccessed 2026-08-07
- Nevada Department of Taxation — individual income taxaccessed 2026-08-07