New Mexico Payroll Calculator
Calculate employer payroll taxes, employee withholdings, and net pay in New Mexico. Stay compliant with New Mexico labor laws and tax regulations.
Why calculating business in New Mexico is different
New Mexico has a progressive income tax system.
State Income Tax
1.7% - 5.9%
Base Sales Tax
5.125%
State Min Wage
$12.00 / hr
Abbreviation
NM
New Mexico Business Interactive Tool
This calculator uses the latest 2026 data for New Mexico, including the minimum wage of $12.00 and the specific state income tax rates (1.7% - 5.9%).
Frequently Asked Questions about New Mexico Business
How do I calculate payroll taxes in New Mexico?
To calculate payroll taxes in New Mexico, you must account for federal FICA taxes (Social Security and Medicare), federal unemployment (FUTA), New Mexico state unemployment (SUTA), and New Mexico state income tax withholding (1.7% - 5.9%).
What is the minimum wage for payroll in New Mexico?
The current minimum wage in New Mexico is $12.00 per hour. Employers must ensure all non-exempt employees earn at least this amount.