Use our New Mexico Paycheck Calculator to quickly figure out how much you’ll take home after taxes. Just enter your salary, pay frequency, and deductions and get a detailed breakdown of your gross pay, taxes, and net pay in seconds.
How Your New Mexico Paycheck is Calculated
Your paycheck starts with your gross earnings and ends with your net pay after all required taxes and deductions. The basic formula is:
Gross Pay – (Federal Taxes + State Taxes + Local Taxes + FICA) = Net Pay
Here’s what each term means:
- Gross Pay: Your total earnings before any deductions, including wages, salaries, bonuses, and commissions.
- Federal Income Tax: The federal tax withheld based on IRS tax brackets, filing status, and W-4 information.
- FICA Taxes: Social Security and Medicare taxes that support federal programs for retirement and healthcare.
- State Income Tax: The tax collected by New Mexico on your earnings, based on your income level.
- Local Taxes: Additional income taxes imposed by certain cities or counties, if applicable.
A Guide to New Mexico State Payroll Taxes
New Mexico State Income Tax
New Mexico has a progressive state income tax system, meaning your tax rate increases as your income rises. The 2025 tax brackets for single filers are listed below:
| Taxable Income (Single Filers) | 2025 Tax Rate |
|---|---|
| Up to $5,500 | 1.7% |
| $5,501 – $11,000 | 3.2% |
| $11,001 – $16,000 | 4.7% |
| $16,001 – $210,000 | 4.9% |
| $210,001 – $315,000 | 5.9% |
| Over $315,000 | 6.9% |
New Mexico offers standard deductions similar to the federal system. For 2025, the standard deduction is $13,850 for single filers and $27,700 for married couples filing jointly. Taxpayers may also claim personal exemptions and credits for dependents, education expenses, and certain retirement contributions.
State-Specific Programs & Withholdings
New Mexico does not require employee contributions to a state disability insurance (SDI) program. However, employers and employees contribute to the State Unemployment Insurance (SUI) program through payroll taxes. While SUI rates vary for employers based on experience, employees do not have a direct SUI deduction from their paycheck.
New Mexico also participates in state-managed programs that support workforce training and job development, though these are typically funded by employers, not employees.
Understanding Federal & FICA Taxes
Federal and FICA taxes are standard across the United States and account for a significant part of your paycheck deductions:
- Social Security Tax: 6.2% on wages up to $168,600 in 2025.
- Medicare Tax: 1.45% on all wages, plus an additional 0.9% on income over $200,000 for single filers or $250,000 for married couples filing jointly.
Your employer matches these FICA contributions, but only your portion appears as a deduction on your pay stub. Federal income tax withholding depends on your taxable income, marital status, and the allowances you select on your W-4 form.
Local Taxes in New Mexico
New Mexico does not have local income taxes. While some counties and municipalities, like Albuquerque or Santa Fe, impose local sales and property taxes, there are no city or county income taxes that affect your paycheck directly. Your take-home pay will therefore reflect only federal and state withholdings, along with FICA deductions.
Frequently Asked Questions (FAQs) About New Mexico Paychecks
What is the minimum wage in New Mexico?
As of 2025, the minimum wage in New Mexico is $12.00 per hour. Some cities, including Santa Fe and Albuquerque, may have higher local minimum wage rates.
How often are paydays in New Mexico?
Most New Mexico employers pay employees either bi-weekly or semi-monthly. State law requires wages to be paid at least twice a month.
What is the New Mexico state tax rate for 2025?
New Mexico’s state income tax ranges from 1.7% to 6.9% for 2025, depending on your taxable income and filing status.
Are 1099 contractors subject to New Mexico taxes?
Yes. Independent contractors must pay New Mexico state income taxes through quarterly estimated payments since their income is not subject to withholding. They must also pay self-employment taxes covering Social Security and Medicare.
What are the overtime laws in New Mexico?
Non-exempt employees must be paid 1.5 times their regular hourly rate for all hours worked over 40 in a workweek. Some employees, such as certain executives or professionals, may be exempt under federal and state labor laws.