NMState-set rate
New Mexico minimum wage 2026
The New Mexico minimum wage is $12.00 per hour as of 2023-01-01. The tipped cash wage is $3.00 with a tip credit of $9.00. [NM labor dept.][DOL WHD]
Standard minimum
NM$12.00
Effective 2023-01-01.
Verified 2026-06-24
Tipped cash wage
$3.00
Tip credit ceiling $9.00.
Verified 2026-06-24
vs federal $7.25
+$4.75
Above the federal minimum.
Verified 2009-07-24
Next scheduled step
None
No further increase scheduled in statute.
Verified 2026-06-24
Tip-credit split
Cash $3.00Credit $9.00Combined $12.00
Take-home at the New Mexico minimum
Estimated take-home at $12.00 per hour
20 hours/week
$240.00
~$210/wk after tax
$12,480 annual gross
30 hours/week
$360.00
~$311/wk after tax
$18,720 annual gross
40 hours/week
$480.00
~$404/wk after tax
$24,960 annual gross
Estimate uses 2026 federal brackets (single filer), FICA 7.65 percent, and a flat state effective rate. Actual withholding varies by W-4 and credits.
Statute and indexing
House Bill 31 (2019) phased the rate to $12.00 on 2023-01-01. Tipped cash wage of $3.00 set by N.M.S.A. section 50-4-22(C). Santa Fe and Albuquerque set higher local rates.
Local ordinances above the New Mexico rate
Tool
Take-home calculator
Reference
Federal vs state delta