Minimum Wage in New Mexico (NM)
The minimum wage in New Mexico is $12.00 per hour , effective January 1, 2023. This is $4.75 (65.52%) above the federal minimum wage of $7.25. The tipped minimum wage is $3.00 per hour. Employers may pay tipped employees $3.00/hr in cash wages if tips bring total compensation to at least the minimum wage. Some cities in New Mexico have higher local minimum wages, with Santa Fe at $14.60/hr. New Mexico reached $12.00/hr in 2023. CPI adjustments begin after.
Minimum Wage by City in New Mexico
Some cities in New Mexico have enacted local minimum wage ordinances above the state rate. The table below shows minimum wages for 4 cities, sorted by rate. Workers should check whether their city has a local rate, as the highest applicable rate always applies.
| City | Minimum Wage | Annual (Full-Time) | vs. State Rate | vs. Federal |
|---|---|---|---|---|
| Santa Fe Local Rate | $14.60/hr | $30,368 | +$2.60 | +$7.35 |
| Santa Fe County Local Rate | $14.60/hr | $30,368 | +$2.60 | +$7.35 |
| Las Cruces Local Rate | $12.36/hr | $25,709 | +$0.36 | +$5.11 |
| Albuquerque | $12.00/hr | $24,960 | Same | +$4.75 |
How New Mexico Compares to Other States
Below is a comparison of New Mexico with five states that have similar minimum wage rates. This comparison helps illustrate where New Mexico stands nationally.
| State | Minimum Wage | Tipped Wage | Annual Full-Time |
|---|---|---|---|
| New Mexico (NM) | $12.00/hr | $3.00/hr | $24,960 |
| Nevada (NV) | $12.00/hr | $12.00/hr | $24,960 |
| Alaska (AK) | $11.91/hr | $11.91/hr | $24,773 |
| Virginia (VA) | $12.41/hr | $2.13/hr | $25,813 |
| Michigan (MI) | $12.48/hr | $10.36/hr | $25,958 |
| South Dakota (SD) | $11.20/hr | $5.60/hr | $23,296 |
Frequently Asked Questions About New Mexico Minimum Wage
What is the minimum wage in New Mexico in 2026?
The minimum wage in New Mexico is $12.00 per hour as of January 1, 2023. This is $4.75 above the federal minimum wage of $7.25. A full-time worker at this rate earns approximately $24,960 per year before taxes.
What is the tipped minimum wage in New Mexico?
The tipped minimum wage in New Mexico is $3.00 per hour. Employers can use a tip credit of $9.00/hr, paying tipped employees a cash wage of $3.00/hr, as long as tips bring total compensation to at least $12.00/hr.
Do any cities in New Mexico have a higher minimum wage?
Yes. 3 cities have local minimum wage above the state rate. The highest is Santa Fe at $14.60/hr. When a city has a higher rate, employers must pay whichever rate is highest.
How much does a minimum wage worker earn per year in New Mexico?
A full-time minimum wage worker in New Mexico (40 hours/week, 52 weeks/year) earns approximately $24,960 per year before taxes. In Santa Fe, that figure rises to $30,368 per year. The federal minimum wage yields $15,080/year.
Find Your Exact Minimum Wage
Use our minimum wage lookup tool to find the exact rate for your specific city in New Mexico, or browse all 50 states to compare minimum wages across the country. Remember: the highest applicable rate (federal, state, or local) always applies.