New Mexico Minimum Wage 2026
The minimum wage in New Mexico is $12.00 per hour in 2026, effective January 1, 2023. Tipped employees can be paid a cash wage of $3.00 per hour, as long as tips bring them to the full minimum.
What is the minimum wage in New Mexico in 2026?
The New Mexico minimum wage is $12.00 per hour in 2026. The rate reached $12.00 on January 1, 2023 as the final step of a 2019 law, and it has stayed flat since: the statute includes no inflation indexing, so the rate only changes if the legislature acts.
The statewide figure is only half the story. New Mexico allows local minimum wages, and Santa Fe in particular runs well above the state rate. Employers hiring across Albuquerque, Santa Fe, and Las Cruces can face three different minimums for the same role.
Tipped minimum wage in New Mexico
The tipped minimum wage in New Mexico is $3.00 per hour in 2026. Employers may take a tip credit of up to $9.00 as long as tips bring the employee to the full $12.00 minimum, or the applicable higher local minimum in places like Santa Fe.
A $3.00 cash wage against a $12.00 floor means tips are doing a lot of work. Track tip earnings every pay period, and remember that in Santa Fe the same tipped mechanics apply against the city's higher rate, so the required top-up threshold is higher there.
New Mexico minimum wage history: 2020 to 2026
| Year | Minimum wage | Tipped wage |
|---|---|---|
| 2020 | $9.00 | $2.35 |
| 2021 | $10.50 | $2.55 |
| 2022 | $11.50 | $2.80 |
| 2023 | $12.00 | $3.00 |
| 2024 | $12.00 | $3.00 |
| 2025 | $12.00 | $3.00 |
| 2026 | $12.00 | $3.00 |
Upcoming minimum wage increases in New Mexico
No statewide increases are scheduled. New Mexico's 2019 law topped out at $12.00 in 2023 and did not include inflation indexing, so the rate will stay at $12.00 unless the legislature passes a new bill. Proposals to raise or index the rate surface most sessions but none has passed so far.
Local rates are a different matter. Santa Fe adjusts its living wage every March based on inflation, so employers there see an annual increase even while the state rate stands still.
Minimum wage by city in New Mexico
New Mexico permits local minimum wages, and several jurisdictions use that power. Santa Fe, both the city and the surrounding county, maintains a living wage well above the state minimum, roughly $15.00 per hour, that adjusts each March (confirm the current figure with the city before setting pay).
Las Cruces sits slightly above the state rate under its own ordinance, while Albuquerque's local minimum has converged with the state's $12.00. If you operate in multiple New Mexico cities, check each ordinance annually; the March timing of Santa Fe's adjustment is easy to miss on a January-focused payroll calendar.
City and county living wage, roughly $15.00, adjusts every March; confirm the current figure
Local ordinance slightly above the state rate; check the city's current figure
City minimum now matches the state rate
State rate applies
What New Mexico employers need to know
Track local ordinances
Apply the rate for the location where work is performed. Santa Fe city and county rates exceed the state minimum and adjust each March, on a different cycle than most states' January changes.
Tipped employees
The cash wage is $3.00 statewide. Tips must bring each employee to the full applicable minimum, whether that is $12.00 under state law or a higher local rate.
No automatic state increases
The state rate is not indexed, so it stays at $12.00 until the legislature acts. Watch legislative sessions rather than expecting an annual announcement.
Posting and records
Display the New Mexico minimum wage poster plus any applicable local wage notice (Santa Fe requires its own), and keep standard payroll records.
How other states compare
See how New Mexico's $12.00 rate stacks up against other state minimum wages in 2026, or browse the full minimum wage index for all 50 states.
Last verified:
Sources: the US Department of Labor's state minimum wage table and official announcements from the New Mexico labor department. Minimum wage laws change frequently; confirm current rates with those sources or legal counsel before setting pay.
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