New Mexico minimum wage in 2026 (and 2027)

Which rate you owe depends on where the work happens

The state's $12.00 is a floor, not a ceiling. When a city or county sets a higher number, that local rate generally covers work done inside its limits; check each ordinance for who is covered.

• Statewide: $12.00 an hour, with a $3.00 cash wage for tipped employees (DOL tipped table).
• Las Cruces: $13.01 from January 1, 2026, and $5.20 for tipped staff. The city has published $13.47 (tipped $5.39) for January 1, 2027.
• Santa Fe city and Santa Fe County (unincorporated): both set their own minimum wages. We could not read either government's page in October 2026, so we do not print a figure here. Get the current number from the city or county before you set pay.

City and county minimum wages in New Mexico

New Mexico between Texas and Colorado

At $12.00, New Mexico sits between its neighbors. Arizona pays $15.15 and Colorado pays $15.16 statewide, with higher local rates in Denver and Boulder. To the east, Texas stays at $7.25, as does Oklahoma. An employer in Farmington competes with Colorado pay a short drive north; one in Hobbs or Clovis competes with Texas, where the floor is $4.75 lower.

Pay at $12.00 by the week, month and year

At 40 hours a week and 2,080 hours a year:

• Week: 40 x $12.00 = $480.00
• Month: $24,960 / 12 = $2,080.00
• Year: 2,080 x $12.00 = $24,960.00
• Overtime after 40 hours: 1.5 x $12.00 = $18.00 an hour

A full-time Las Cruces worker at $13.01 earns $27,060.80 a year (2,080 x $13.01).

Employer cost on top of $24,960

New Mexico's unemployment wage base is $34,800, so all $24,960 is taxable. New employers pay the average rate for their industry, which the state page did not show, so we cannot print one number. Each 1% of rate costs $249.60 on this worker. The $4.80 quarterly workers' compensation fee is filed with the unemployment report: $2.55 is yours and $2.25 comes out of the employee's pay. Insurance premiums are separate, and coverage is required once you have 3 employees (construction from the first). The state unemployment rate table shows how New Mexico compares.

Running New Mexico payroll at these rates

New Mexico pays semimonthly by default, with monthly pay allowed for executive, administrative and professional staff. A discharged employee on a fixed wage must be paid within 5 days. If you have staff in Las Cruces and elsewhere, set up the local rate by work location in your payroll system so hours worked in the city are paid at the city rate.

Gusto's lowest-priced plan, Simple, runs $49 a month with a $6 charge per person (checked October 16, 2026). Compare it in our ranked payroll software list, and see the New Mexico payroll tax guide for registration.