New Mexico payroll tax rates
Unemployment tax, income tax withholding, minimum wage and paid leave in New Mexico, each with its effective date and the agency page it comes from.
Unemployment insurance
Checked on October 5, 2026.
Income tax withholding
Checked on October 5, 2026.
Minimum wage
| Item | Value | Effective | Source |
|---|---|---|---|
| Minimum wage | $12.00 | NMSA 1978 Chapter 50, Employment Law (NMOneSource, unannotated, compiled July 2024, PDF) (opens in a new tab) | |
| Tipped employees, cash wage | $3.00 | NMSA 1978 Chapter 50, Employment Law (NMOneSource, unannotated, compiled July 2024, PDF) (opens in a new tab) | |
| Rises with inflation | No | NMSA 1978 Chapter 50, Employment Law (NMOneSource, unannotated, compiled July 2024, PDF) (opens in a new tab) | |
| Local rates | Local rates are allowed (state preemption expired 2010). Albuquerque's 2026 city rate is $11.85, below the state $12.00, which therefore applies; tipped employees in Albuquerque get at least $7.20. Santa Fe city and county and other local rates were not verified here. | City of Albuquerque, Albuquerque Minimum Wage Information (opens in a new tab) |
Checked on October 5, 2026.
Paid family and medical leave
| Item | Value | Effective | Source |
|---|---|---|---|
| State program | None | NM Department of Workforce Solutions, Paid Family and Medical Leave (opens in a new tab) |
Checked on October 5, 2026.
Workers' compensation
| Item | Value | Effective | Source |
|---|---|---|---|
| Required | From 3 employeesConstruction: from the first employee | New Mexico Workers' Compensation Administration, FAQs (opens in a new tab) | |
| State fund | None; private insurers | New Mexico Workers' Compensation Administration, FAQs (opens in a new tab) |
Checked on October 5, 2026.
What a paycheck costs the employer in New Mexico
Employer taxes and contributions on one employee's pay in New Mexico, per check and for the year, at the rates a new employer pays. State rates are the ones on this page; federal rates are the ones on the federal payroll tax rates page.
- Employer taxes and contributions per check
- $213.47 to $218.31
- First check of the year
- Cost per check
- $2,521.16 to $2,526.00
- Pay included, first check
- Cost per year
- $64,980.00 to $65,053.08
- Pay included
Later checks cost less once pay passes a wage base: the year's last check costs $2,484.23, pay included.
| Item | Rate | First check | Per year | Source |
|---|---|---|---|---|
| Social Security, employer share | 6.2% on the first $184,500 | $143.08 | $3,720.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Medicare, employer share | 1.45% of all pay | $33.46 | $870.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Federal unemployment (FUTA) | 0.6% on the first $7,000After the full 5.4% credit. Employers in a credit reduction state pay more. | $13.85None after check 4 | $42.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| New Mexico unemployment | 1% to 1.21% on the first $34,800The industry average rate for the employer's NAICS sector, or 1.0% if higher; 1.00% to 1.21% for private sectors in 2026 | $23.08 to $27.92None after check 16 | $348.00 to $421.08 | NM Department of Workforce Solutions, How UI Tax Rates Are Calculated (2026 New Employer Industry Rates) (opens in a new tab); NM Department of Workforce Solutions, Unemployment Insurance Tax Information (opens in a new tab) |
| Employer taxes and contributions | $213.47 to $218.31 | $4,980.00 to $5,053.08 | ||
| Pay | $2,307.69 | $60,000.00 | ||
| Pay plus employer costs | $2,521.16 to $2,526.00 | $64,980.00 to $65,053.08 |
Checked on October 5, 2026. Shows one employee's pay for a full calendar year, every check at the rates in force on October 13, 2026, with all pay subject to these taxes, the new employer rates and the full employer shares the law sets. An employer may choose to pay an employee's share too. Benefits and other costs are not included.
Common questions
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Payroll taxes calculated, deposited and filed in every state
Worklio HCM calculates, deposits and files payroll taxes in every state and locality, city, county and school district taxes included, and rates and rules update without you noticing. We help open state accounts when you hire somewhere new. Payroll and HCM for companies with 50 to 50,000+ employees.
Rates in other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Sources
The agency page or document behind each figure, as checked.
- NM Department of Workforce Solutions, Unemployment Insurance Tax Information (opens in a new tab)
- NM Department of Workforce Solutions, Unemployment Insurance Employer Handbook (2019, PDF) (opens in a new tab)
- NM Department of Workforce Solutions, How UI Tax Rates Are Calculated (2026 New Employer Industry Rates) (opens in a new tab)
- US DOL OUI, FUTA Credit Reductions (opens in a new tab)
- NM Taxation and Revenue Department, Withholding Tax and Workers Compensation (opens in a new tab)
- NM Taxation and Revenue Department, FYI-104 New Mexico Withholding Tax, effective January 1, 2026 (rev. 11/2025, PDF) (opens in a new tab)
- NMSA 1978 Chapter 3, Municipalities (NMOneSource, unannotated, compiled July 2026, PDF) (opens in a new tab)
- NMSA 1978 Chapter 50, Employment Law (NMOneSource, unannotated, compiled July 2024, PDF) (opens in a new tab)
- City of Albuquerque, Albuquerque Minimum Wage Information (opens in a new tab)
- NM Department of Workforce Solutions, Paid Family and Medical Leave (opens in a new tab)
- New Mexico Workers' Compensation Administration, FAQs (opens in a new tab)
- IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab)
General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes.