New Mexico minimum wage

Minimum wage in New Mexico, in effect since January 1, 2023

$12.00 an hour

That is $4.75 above the federal minimum of $7.25. Employers in New Mexico pay the higher state rate.

Next increase: none announced as of October 8, 2026. No automatic indexing; the rate is set in statute.

Standard rate
$12.00
since January 1, 2023
Tipped cash wage
$3.00
Max tip credit $9.00
Next change
None set
as of 2023
Federal minimum
$7.25
unchanged since 2009

Tipped employees

Employers in New Mexico can pay tipped employees a cash wage of $3.00 an hour, taking a tip credit of up to $9.00, as long as tips bring the employee to at least $12.00 for every hour worked. If they don't, the employer makes up the difference. An employee counts as tipped if they get more than $30 a month in tips.

Youth and training wages

Secondary school students working after school hours or when school is not in session: at least $8.50.

How future increases are set

No automatic indexing; the rate is set in statute.

Exceptions and details

Cities and counties with a higher minimum wage

These places in New Mexico set their own minimum wage. Employers there pay the local rate.

PlaceMinimum wageNext change
Albuquerque$12.00—
Santa Fe$15.40$17.50 on January 1, 2027
Santa Fe County (unincorporated)$15.40—

Common questions

What is the minimum wage in New Mexico?
$12.00 an hour, in effect since January 1, 2023.
What is the tipped minimum wage in New Mexico?
$3.00 an hour in cash wages, provided tips bring the employee up to $12.00 an hour.
When does the New Mexico minimum wage go up?
No increase had been announced as of October 8, 2026.
Do any cities or counties in New Mexico have a higher minimum wage?
Yes: Albuquerque ($12.00), Santa Fe ($15.40), Santa Fe County (unincorporated) ($15.40).

Running payroll in New Mexico?

Recent changes

Last verified against the official source on October 8, 2026.

No changes recorded since we started tracking this page.

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Sources

We copy figures from official sources and re-check them against the source before every update. See our methodology. This is general information, not legal advice.