I have 2 leased producing properties in NM. On the royalty statements they withhold NM State income tax. No Federal withholding unless you don’t provide the lease operator that is paying you royalties your SSN. For lease bonus money, I don’t believe there is any NM state income tax to pay (at least I have not paid any) and again if you give them your SSN there should not be any Federal income tax withholding. But of course bonus & royalty income is subject to Federal income tax. Don’t forget to deduct for expenses (what is shown on your royalty statements) and depletion on your Federal Income tax return.
HTH
N Case