New Mexico Hourly Paycheck Calculator
Your hourly rate and hours in, your take-home pay out. Overtime is paid at 1.5× your rate; tips you report are taxed like wages.
| Per paycheck | Amount | Per year |
|---|---|---|
| Gross pay | $1,600.00 | $41,600.00 |
| Federal income tax · withheld | −$108.15 | −$2,812.00 |
| Social Security (6.2%) | −$99.20 | −$2,579.20 |
| Medicare (1.45%) | −$23.20 | −$603.20 |
| New Mexico income tax · withheld | −$44.92 | −$1,167.92 |
| N.M. Workers' Compensation fee · $2.25 a quarter, spread across paychecks | −$0.35 | −$9.00 |
| Take-home pay | $1,324.18 | $34,428.68 |
How the federal income tax was worked out
| Pay subject to income tax, for the year · $1,600.00 × 26 paychecks | $41,600.00 |
| Minus the IRS withholding allowance · Pub 15-T Worksheet 1A, line 1g | −$8,600.00 |
| Adjusted yearly wage | $33,000.00 |
| Tax from the IRS yearly table · standard table | $2,812.00 |
| Federal income tax per paycheck · divided by 26 | $108.15 |
IRS Publication 15-T (2026), Worksheet 1A — the percentage method payroll software uses for a Form W-4 from 2020 or later. Your employer's figure can differ by a few cents because of rounding.
How the New Mexico income tax was worked out
| Pay subject to N.M. tax this paycheck · after pre-tax 401(k) and benefits; Table 2(a), Single | $1,600.00 |
| Fixed amount from the table · row starting at $1,598.00 | $44.83 |
| Plus 4.7% of pay over $1,598.00 | $0.09 |
| N.M. income tax this paycheck | $44.92 |
Hourly pay in New Mexico
New Mexico's minimum wage is $12.00 an hour. Tipped employees — those who get more than $30 a month in tips — can be paid $3.00 an hour in cash as long as tips bring them up to $12.00. Some cities and counties have their own minimum wage rules; this calculator uses the state rate and does not work out local rates.
Overtime. State law requires time-and-a-half for hours over 40 in a week of seven days. There is no daily overtime rule.
Tips and overtime on your New Mexico tax. Reported tips and overtime pay are part of your wages for the FYI-104 tables.
The fee. The Workers' Compensation fee is the same $2.25 a quarter whether you work 10 hours a week or 50.
Because hours change from week to week, your withholding changes too: a week with lots of overtime is withheld as if you earned that much every week, so more comes out. It usually evens out when you file your return.
What comes out of a New Mexico paycheck
- Federal income tax withholding — worked out from your pay and your Form W-4, using the IRS tables for 2026.
- Social Security — 6.2% of your pay, up to $184,500 of pay in 2026. Above that, it stops for the rest of the year.
- Medicare — 1.45% of all your pay, plus 0.9% on pay above $200,000 in the year.
New Mexico has a graduated income tax, from 1.5% up to 5.9%. Employers withhold it with the tables in the Taxation and Revenue Department's FYI-104 publication:
- Start with your pay subject to income tax for this paycheck — after a traditional 401(k) and pre-tax health insurance.
- Pick the table for your pay period and your filing status on your federal W-4: Single, Married or Head of household. Nothing is subtracted first — there are no allowances.
- Find your pay in the table. Pay up to the first row is not taxed. Above that, the table gives a fixed amount plus 1.5%, 3.2%, 4.3%, 4.7%, 4.9% or 5.9% of the pay over the row's start.
- Add any extra amount you asked your employer to take out. The result is kept in cents; it is not rounded to whole dollars.
Workers' Compensation fee. New Mexico law has employers take a fee of $2.25 per quarter from each covered employee's wages — $9.00 a year. Your employer pays $2.55 a quarter on top. It is a flat amount, not a share of your pay. We spread it evenly across your paychecks, so it shows as a few cents each time.
Tips and overtime in 2026
New federal deductions apply for 2025 through 2028: up to $25,000 for qualified tips, and up to $12,500 ($25,000 for joint filers) for the extra "half" of time-and-a-half overtime. Both phase out above $150,000 of income ($300,000 joint).
These are deductions on your tax return. Your employer still takes Social Security and Medicare out of tips and overtime, and still withholds income tax unless you tell it otherwise. If you expect to claim them, you can put the expected amount in Step 4(b) of your W-4 (and in the Step 4(b) box above) so less income tax is withheld during the year.
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Sources
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods — Worksheet 1A and the annual percentage-method tables
- IRS Publication 15 (2026), Employer's Tax Guide — Social Security and Medicare rates
- Social Security Administration — 2026 wage base of $184,500
- IRS — tips and overtime deductions
- New Mexico Taxation and Revenue Department — FYI-104, New Mexico Withholding Tax, Effective January 1, 2026 (REV. 11/2025) — TRD RealFile public-files copy; federal W-4 used, no allowances; percentage-method Tables 1–8 (single, married, head of household), 1.5%–5.9%; worked example $1,000 weekly married + $20 → $41.80; 5.9% flat supplemental rate
- New Mexico Taxation and Revenue Department — FYI-104, Effective January 1, 2025 (REV. 11/2024) — 2025 Table 7 first taxed rows $7,500 single, $15,000 married, $11,250 head of household; same rates
- New Mexico Taxation and Revenue Department — Wage Withholding Tax — employers refer to the wage withholding tables in FYI-104
- NMSA 1978 § 52-5-19 — Fee for funding administration (Workers' Compensation) — employee fee deducted from wages: $2.00 before July 1, 2025; $2.25 July 1, 2025 – June 30, 2028; $2.38 from July 1, 2028; per covered employee on the last working day of each quarter
- New Mexico Taxation and Revenue Department — Withholding Tax and Workers' Compensation — employer $2.55 and employee $2.25 per quarter from July 1, 2025; reported on Form TRD-41431
- New Mexico Workers' Compensation Administration — FAQs — quarterly assessment $4.80 per covered employee: $2.25 paid by workers, $2.55 by employers; employers with fewer than three employees generally not covered (construction excepted)
- NMSA 1978 § 50-4-22 — Minimum wages — $12.00 from January 1, 2023; tipped employees (more than $30 a month in tips) at least $3.00 cash; overtime at 1.5× over 40 hours a week
- U.S. Department of Labor — Minimum Wages for Tipped Employees — New Mexico: $12.00 combined rate, $9.00 tip credit, $3.00 cash wage; tipped employee = more than $30 a month
- U.S. Department of Labor — State Minimum Wage Laws — New Mexico $12.00; premium pay after 40 hours a week
- City of Albuquerque — Notice regarding 2026 minimum wage rate — example of a local minimum wage ordinance; not calculated here
- NMSA 1978 § 50-4-2 — Regular pay days — pay days not more than 16 days apart; professional, administrative, executive and outside sales employees may be paid monthly
- NMSA 1978 § 50-4-4 — Discharged employees — fixed wages within 5 days of discharge; task, piece or commission pay within 10 days
- NMSA 1978 § 50-4-5 — Employees who quit — due at the next regular payday
- NMSA 1978 § 50-4-8 — Investigation of wage claims — the director (now Workforce Solutions Department) investigates and helps enforce wage claims
Questions
What is the New Mexico income tax rate in 2026?
Withholding runs from 1.5% to 5.9%, after a first slice of pay with no tax. The steps are 1.5%, 3.2%, 4.3%, 4.7%, 4.9% and 5.9%.
How much is taken out of a $1,000 paycheck in New Mexico?
For a single filer paid every two weeks with nothing else on the W-4, a $1,000 paycheck has about $38.08 of federal income tax, $62.00 of Social Security and $14.50 of Medicare taken out, $19.12 of New Mexico income tax, leaving $865.95. Enter your own details in the calculator for your exact figure.
What is $20 an hour after taxes in New Mexico?
Working 40 hours a week and paid every two weeks, $20 an hour is $1,600.00 before tax and about $1,324.18 after tax per paycheck — $34,428.68 a year — for a single filer with a standard W-4.
Does New Mexico have its own W-4?
No. Employers use your federal W-4 filing status. You can give a second federal W-4 marked "For New Mexico State Withholding Only" if you want a different status or extra withholding for New Mexico.
What is the Workers' Compensation fee on my pay stub?
A fee set by state law: $2.25 per quarter from your wages, $9.00 a year. Your employer pays $2.55 a quarter as well.
When do I get my last paycheck in New Mexico?
If you are fired, within 5 days for fixed wages. If you quit, by the next regular payday.