Current minimum wage in New Mexico
New Mexico's statewide minimum wage has been $12.00 an hour since January 1, 2023. Tipped workers can be paid $3.00 an hour in cash, and Santa Fe, Santa Fe County and Las Cruces set higher local rates, while Albuquerque requires a higher tipped cash wage.
The rate rose from $11.50 (effective January 1, 2022) to $12.00 on January 1, 2023, an increase of $0.50 an hour or $1,040 a year for a full-time worker.
Next scheduled change
No further increase is scheduled under current state law.
Tipped minimum wage
Employers may pay tipped employees a cash wage of $3.00 an hour and count tips toward the rest, as long as total pay reaches $12.00 an hour. The federal tipped cash wage is $2.13. Employers may pay tipped workers $3.00 an hour in cash as long as tips bring total pay to at least $12.00.
What minimum wage pays in New Mexico
| Hours per week | Weekly pay | Yearly pay |
|---|---|---|
| 20 hours | $240.00 | $12,480 |
| 25 hours | $300.00 | $15,600 |
| 30 hours | $360.00 | $18,720 |
| 35 hours | $420.00 | $21,840 |
| 40 hours | $480.00 | $24,960 |
After federal and New Mexico taxes, a full-time minimum wage worker who files single keeps about $21,975 a year, or $845 per biweekly check. Run your own numbers with the New Mexico paycheck calculator or see the full breakdown for $12 an hour.
Overtime rules
Follows the federal 40-hour weekly overtime rule.
City and county minimum wages
Santa Fe, Santa Fe County and Las Cruces set higher local minimum wages, and Albuquerque requires a higher cash wage of $7.20 an hour for tipped workers. Albuquerque's and Bernalillo County's own general rates are below $12.00 in 2026, so the state rate applies there.
How New Mexico compares
New Mexico ranks #24 of 51 for its minimum wage, tied with 1 other state at the same rate. The federal minimum wage is $7.25 an hour.
Frequently asked questions
What is the minimum wage in New Mexico in 2026?
The New Mexico minimum wage is $12.00 an hour as of January 1, 2023.
What is the tipped minimum wage in New Mexico?
Employers in New Mexico may pay tipped workers a cash wage of $3.00 an hour, as long as tips bring total pay to at least $12.00. Employers may pay tipped workers $3.00 an hour in cash as long as tips bring total pay to at least $12.00.
When does the New Mexico minimum wage go up next?
No further increase is scheduled under current state law.
How much is minimum wage in New Mexico per year?
At $12.00 an hour, a 40-hour week pays $480 and a full year pays $24,960 before taxes. A single filer keeps about $21,975 after federal and New Mexico taxes.
How does overtime work in New Mexico?
Follows the federal 40-hour weekly overtime rule.
Sources
- City of Albuquerque: Minimum Wage Information (2026 rates)
- Bloomberg Tax: Bernalillo County releases 2026 minimum wage poster (state rate supersedes county rate)
- U.S. Department of Labor: State Minimum Wage Laws (updated July 1, 2026)
- U.S. Department of Labor: Minimum Wages for Tipped Employees (updated July 1, 2026)
- U.S. Department of Labor: Minimum Wage