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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 $31,700, and all employer obligations.
Practical, accurate resources for New Mexico small business owners — covering payroll taxes, labor laws, and compliance. Written by the payroll professionals at Pacific Data Services.
New Mexico graduated 1.7%–5.9% income tax, SUI on $31,700, and all employer obligations.
How to register with New Mexico Taxation and Revenue Department and New Mexico Department of Workforce Solutions as a new New Mexico employer.
New employer rate 2.0%, experienced range 0.33%–5.40%, wage base $31,700.
New Mexico minimum wage is $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.
Semi-monthly pay required. Final pay: Final wages for discharged employees are due within 5 days of termination..
FICA, Social Security, Medicare, FUTA, federal withholding — the complete breakdown.
EIN, state registration, withholding setup, new hire reporting — complete checklist.
IRS classification rules, New Mexico-specific considerations, and misclassification penalties.
IRS lookback period, deposit thresholds, next-day rule, EFTPS, and penalties.
Federal and New Mexico new hire reporting requirements, deadlines, and penalties.
FLSA, IRS, and New Mexico recordkeeping — what to keep, how long, and why.
ALE threshold, penalties, 1094-C/1095-C filing, small business exemption.
Misclassifying workers, wrong withholding, missed deposits — mistakes that add up fast.
Gusto vs Paychex vs QuickBooks vs ADP for New Mexico small businesses.
Federal OT after 40 hrs/week, New Mexico overtime rules, exemptions, salary thresholds.