New Mexico Minimum Wage 2026: $12.00 Statewide, Up to $15.40 in Santa Fe
New Mexico minimum wage is $12.00 per hour in 2026 with a $3.00 tipped cash wage. Santa Fe, Santa Fe County, Albuquerque, Bernalillo County, and Las Cruces set higher local rates. Increase history, who is covered, overtime, and employer checklist.
The New Mexico minimum wage is $12.00 per hour in 2026. The rate has been $12.00 since January 1, 2023, the final step of the 2019 law that raised the state floor from $7.50, and New Mexico does not index the statewide rate to inflation. Tipped employees must receive a cash wage of at least $3.00 per hour plus tips that bring them to $12.00. Five local governments set higher floors: the City of Santa Fe and Santa Fe County are at $15.40, Las Cruces is at $13.01, and Albuquerque and Bernalillo County match the state at $12.00 with their own tipped rules.
Reviewed September 2026
Rates on this page come from the US Department of Labor's state minimum wage table (as of July 1, 2026), the City of Las Cruces and City of Albuquerque wage notices, and the New Mexico Restaurant Association's rate summary. Local rates change on different dates each year. Confirm the rate that applies to each work location with the New Mexico Department of Workforce Solutions and the relevant city or county before running payroll.
Current New Mexico Minimum Wage
New Mexico's statewide minimum wage is $12.00 per hour, as listed in the US Department of Labor state minimum wage table. The state reached this level on January 1, 2023, and the legislature has not scheduled any further statewide increase or adopted automatic inflation adjustments. Employers must pay the highest applicable rate, so a business inside Santa Fe city limits pays the city's living wage, not the state figure.
The state rate is $4.75 above the federal minimum wage of $7.25, which has not changed since 2009. Because the state rate is higher, the federal rate is irrelevant for most New Mexico workers. The federal rate only matters for the narrow group of workers who are covered by the federal Fair Labor Standards Act but exempt from state law.
New Mexico has no youth or training rate that applies broadly. Employers should not assume a sub-minimum rate exists for new hires or teenagers; if a specific exemption is being relied on, it should be confirmed with the Department of Workforce Solutions in writing.
New Mexico Minimum Wage vs Federal Minimum Wage
| Measure | New Mexico (2026) | Federal (2026) | Difference |
|---|---|---|---|
| Hourly minimum wage | $12.00 | $7.25 | $4.75 |
| Tipped cash wage | $3.00 | $2.13 | $0.87 |
| Maximum tip credit | $9.00 | $5.12 | $3.88 |
| Weekly pay at 40 hours | $480.00 | $290.00 | $190.00 |
| Annual pay at 2,080 hours | $24,960 | $15,080 | $9,880 |
| Last increase | January 1, 2023 | July 24, 2009 |
The tipped comparison matters more than it looks. New Mexico allows a $9.00 tip credit, one of the largest in the country, which means a server's guaranteed cash wage is only $3.00 an hour before tips. Several New Mexico cities set much higher tipped floors, which is covered below.
Tipped Minimum Wage in New Mexico
Under state law, an employer may pay a tipped employee a cash wage of $3.00 per hour and count up to $9.00 per hour in tips toward the $12.00 minimum. The DOL tipped employee table lists the $3.00 cash wage and $9.00 maximum credit. If tips in a workweek do not bring the employee to $12.00 for every hour worked, the employer must make up the difference in that pay period.
Three practical rules follow from this:
- Track tips per pay period, not per year. The make-up obligation is tested pay period by pay period. A strong month does not offset a weak week.
- Local rules override the state cash wage. Albuquerque requires a $7.20 tipped cash wage, Las Cruces $5.20, Santa Fe County $4.62, and the City of Santa Fe $3.00 with a $100-per-month tip threshold. Pay the rule for the location where the work is performed.
- Tip pools cannot include managers. Federal rules that apply in New Mexico prohibit employers, managers, and supervisors from keeping any part of employee tips.
New Mexico Minimum Wage Increase Schedule
The 2019 law (House Bill 31) phased in four increases and then stopped. There is no scheduled statewide increase after 2023 and no automatic indexing, so the statewide rate stays at $12.00 until the legislature acts again.
| Effective date | Statewide rate | Tipped cash wage |
|---|---|---|
| Before 2020 | $7.50 | $2.13 |
| January 1, 2020 | $9.00 | $2.35 |
| January 1, 2021 | $10.50 | $2.55 |
| January 1, 2022 | $11.50 | $2.80 |
| January 1, 2023 | $12.00 | $3.00 |
| 2024 to 2026 | $12.00 | $3.00 |
Bills to raise the statewide rate or add indexing have been introduced in recent sessions but had not become law as of September 2026. Employers that operate in Santa Fe, Las Cruces, or Albuquerque should watch the local calendars instead, because those are the rates that actually move each year.
Local Minimum Wages in New Mexico
New Mexico allows cities and counties to set their own minimum wage, and five jurisdictions do. Each adjusts on its own schedule, and each applies to work performed inside its boundaries regardless of where the employer is based.
| Jurisdiction | 2026 rate | Tipped cash wage | Adjustment date | Notes |
|---|---|---|---|---|
| City of Santa Fe | $15.40 | $3.00 (tips of $100+ per month) | March 1 each year (CPI-W, Western Region) | Rose from $15.00 on March 1, 2026; the city has announced a move to $17.50 on January 1, 2027 |
| Santa Fe County | $15.40 | $4.62 | March 1 each year | Applies in unincorporated county areas |
| Las Cruces | $13.01 | $5.20 | January 1 each year (CPI) | Up from $12.65 and $5.06 in 2025 per the city notice |
| Albuquerque | $12.00 (state rate prevails) | $7.20 | January 1 each year | City ordinance rate is $11.85, or $10.85 with $2,500+ in annual healthcare or childcare benefits, but the city confirms the state $12.00 supersedes both |
| Bernalillo County | $12.00 | $3.00 | Applies in unincorporated county areas |
Santa Fe's living wage is the highest in the state and the 2027 jump to $17.50 was adopted by ordinance rather than by the annual CPI formula. Employers with Santa Fe locations should budget for it now. The Las Cruces tipped wage of $5.20 and Albuquerque's $7.20 are the figures most often missed by multi-location employers who default to the state's $3.00.
Who Is Covered and Who Is Exempt
The New Mexico Minimum Wage Act covers most employees in the state. The main groups outside it are:
- Employees covered by a valid collective bargaining agreement that sets wages
- Certain agricultural workers, including some seasonal and family farm labor
- Domestic service workers in a private home in limited circumstances
- Bona fide executive, administrative, and professional employees who meet the salary and duties tests
- Certain volunteers and workers in charitable or religious programs
Salaried employees are not automatically exempt. A title or a salary does not by itself remove minimum wage and overtime protections; the duties test does. Our guide to exempt vs non-exempt employees walks through the federal tests, which New Mexico largely follows for these categories.
Overtime and the Minimum Wage
New Mexico requires overtime at 1.5 times the regular rate for hours over 40 in a workweek. There is no daily overtime requirement. At the state minimum wage, a 45-hour week pays:
| Component | Hours | Rate | Pay |
|---|---|---|---|
| Regular | 40 | $12.00 | $480.00 |
| Overtime | 5 | $18.00 | $90.00 |
| Total | 45 | $570.00 |
For tipped employees, the overtime rate is based on the full minimum wage ($12.00), not the $3.00 cash wage, so the overtime premium is $6.00 per hour on top of the regular rate. See overtime pay laws by state for the federal framework and use the overtime calculator to check a specific pay period.
What a Minimum Wage Worker Earns in New Mexico
| Period | Hours | Statewide ($12.00) | Santa Fe ($15.40) | Las Cruces ($13.01) |
|---|---|---|---|---|
| Week | 40 | $480.00 | $616.00 | $520.40 |
| Month | 173.33 | $2,080.00 | $2,669.28 | $2,255.02 |
| Year | 2,080 | $24,960 | $32,032 | $27,061 |
These are gross figures before taxes and deductions. The salary to hourly calculator converts any hourly rate to annual pay, and our explainer on gross pay covers what comes out before the paycheck.
Employer Compliance Checklist
- Map every work location to its rate. State, Santa Fe city, Santa Fe County, Las Cruces, Albuquerque, and Bernalillo County each have a different floor or tipped rule.
- Calendar the local adjustment dates. Santa Fe moves on March 1, Las Cruces and Albuquerque on January 1. Set reminders a month ahead.
- Reconcile tips every pay period. Confirm each tipped employee reached the applicable minimum for every hour; pay the shortfall in the same period.
- Post the current notices. The state poster plus the city or county notice for each location.
- Keep accurate hour records. Minimum wage claims turn on hours worked. A time card calculator is fine for a small team; automated time tracking is safer as headcount grows.
- Check overtime after 40 hours and base tipped overtime on the full minimum wage.
For rates in every other state, see minimum wage by state.
Track Hours Against the Right Rate
HiveDesk records hours worked automatically so you can prove every employee reached the applicable minimum wage in every pay period. $5/user/month, 14-day free trial.
Frequently Asked Questions
What is the minimum wage in New Mexico in 2026?
$12.00 per hour statewide. Santa Fe city and county are at $15.40, Las Cruces is at $13.01, and Albuquerque and Bernalillo County are at the state rate of $12.00.
Is New Mexico's minimum wage going up in 2027?
Not statewide. No increase is scheduled and the state rate is not indexed to inflation. The City of Santa Fe has announced a move to $17.50 on January 1, 2027, and Las Cruces adjusts for CPI each January.
What is the tipped minimum wage in New Mexico?
$3.00 per hour in cash, with tips making up the rest of the $12.00 minimum. Albuquerque requires $7.20, Las Cruces $5.20, and Santa Fe County $4.62.
Does Albuquerque have a higher minimum wage than the state?
No. Albuquerque's ordinance rate is $11.85 for 2026, so the state's $12.00 prevails. Albuquerque's tipped cash wage of $7.20 is higher than the state's $3.00 and does apply.
What is the Santa Fe living wage?
$15.40 per hour effective March 1, 2026, for all employers inside city limits, adjusted each March by CPI. The city has announced a legislated increase to $17.50 on January 1, 2027.
How much is minimum wage per year in New Mexico?
$24,960 before taxes for a full-time worker at $12.00 an hour for 2,080 hours. In Santa Fe it is $32,032.
Does New Mexico require daily overtime?
No. Overtime is owed after 40 hours in a workweek at 1.5 times the regular rate.
Can a New Mexico employer pay a training wage?
There is no general training or youth sub-minimum wage under state law. Confirm any claimed exemption with the Department of Workforce Solutions before paying below $12.00.
Sources
- US Department of Labor, State Minimum Wage Laws (as of July 1, 2026)
- US Department of Labor, Minimum Wages for Tipped Employees
- City of Las Cruces, Minimum Wage Notice for 2026
- City of Albuquerque, Minimum Wage Information
- City of Santa Fe, Living Wage
- New Mexico Restaurant Association, Minimum Wage in New Mexico
- New Mexico Department of Workforce Solutions, Minimum Wage Information