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Taxes
New Mexico Payroll Taxes 2026: Complete Overview for Employers
New Mexico graduated 1.7%–5.9% income tax, SUI on the first $31,700, and all employer tax obligations explained.
Practical guides on NM payroll taxes, employer registration, SUI, minimum wage, and labor laws — written for small business owners, not accountants.
Written by payroll professionals at Pacific Data Services — trusted since 1969.
New Mexico has four income tax brackets from 1.7% to 5.9%, with the top rate applying to income over $210,000.
New Mexico’s $31,700 SUI wage base is significantly above the national average, increasing per-employee unemployment costs.
New Mexico requires employers to pay discharged employees within 5 days, a relatively strict deadline that demands prompt payroll processing.
New Mexico graduated 1.7%–5.9% income tax, SUI on the first $31,700, and all employer tax obligations explained.
Get your EIN, register with New Mexico, set up withholding, new hire reporting — the complete checklist.
New employer rate 2.0%, experienced range 0.33%–5.40%, wage base $31,700.
New Mexico minimum wage $12.00/hr. New Mexico’s state minimum wage is $12.00/hr. Tipped employees may be paid $3.00/hr. Some cities like Santa Fe and Albuquerque have higher local minimums.
IRS classification rules, New Mexico-specific considerations, misclassification penalties.
Gusto vs Paychex vs QuickBooks vs ADP — detailed comparison for New Mexico small businesses.