What are the taxes that self-employed people have to pay?

Self-employed people should be aware that, in addition to federal and state personal income tax, they must pay all of their own Social Security & Medicare taxes (known as self-employment or SE taxes) on the profits from their businesses. Note: This is differenent from employees who pay 1/2 of those taxes through withholdings and their employers pay 1/2.

 

If the business does business in New Mexico,  business sales will also be subject to gross receipts tax

Here is an example.