New Mexico Paycheck Calculator 2026

Enter your pay and your W-4 details to see what lands in your bank account. New Mexico's 2026 income tax runs from 1.5% to 5.9% — we show each step of the state's withholding table, plus the small Workers' Compensation fee.

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:

1. Start with your pay subject to income tax for this paycheck — after a traditional 401(k) and pre-tax health insurance.
2. 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.
3. 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.
4. 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.

What's different about New Mexico

No state W-4

New Mexico has no withholding form of its own. Your employer uses the filing status on your federal W-4. If you want New Mexico to use a different status, you can give your employer a second federal W-4 marked "For New Mexico State Withholding Only". The tables have no allowances; your status alone sets the tax-free first slice.

A tax-free first slice of pay

Over a full year, the tables start taxing pay above $8,050 for Single, $16,100 for Married and $12,075 for Head of household. Paid twice a month, that is $335, $671 and $503 a paycheck. (The printed semi-monthly table lists $304 as the top of the Single untaxed row, but its first taxed row starts at $335; we follow the taxed row.)

Bonuses

If your employer withholds federal tax on a bonus at a flat rate, FYI-104 says to withhold a flat 5.9% for New Mexico.

The Workers' Compensation fee

The fee is set per quarter for each employee on the payroll on the last working day of the quarter. It was $2.00 before July 1, 2025, and is $2.25 through June 30, 2028. Employers with fewer than 3 employees generally don't have to carry workers' comp coverage (construction businesses are an exception), and the fee applies only where coverage does. Paying the fee is not the same as insurance.

Paydays and your last paycheck

Employers must set regular paydays no more than 16 days apart; some salaried professional, administrative and executive staff can be paid monthly. If you are fired, fixed wages are due within 5 days (10 days for piece or commission pay). If you quit, they are due by the next regular payday. The state Workforce Solutions Department looks into unpaid wage claims.

Why your paycheck might differ from this

• Your W-4. Credits for children (Step 3), a checked Step 2 box, or extra withholding (Step 4c) change the federal amount a lot. Open "Tips, 401(k), health insurance and W-4 details" above to enter them.
• Benefits taken before tax. Health insurance through work usually lowers income tax and Social Security and Medicare. A traditional 401(k) lowers income tax only.
• Rounding. Payroll software may round each step, so a few cents of difference is normal.

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