New Mexico Minimum Wage 2026
Last updated: · Source: New Mexico Department of Labor
New Mexico · Minimum Wage 2026
Effective 2023-01-01
Data last verified: 2026-07-09
Tipped Rate
$3.00/hr
Tip Credit
$9.00/hr
Exempt Salary
$684/wk
Effective Date
2023-01-01
New Mexico Wage Calculator
Current New Mexico Minimum Wage
The minimum wage in New Mexico is $12.00 per hour in 2026, effective 2023-01-01. This is above the federal minimum wage of $7.25/hr set by the Fair Labor Standards Act (FLSA). Employers must pay the higher of the two rates, so the New Mexico rate applies. See the federal minimum wage page for how the FLSA floor applies nationwide.
Under the Fair Labor Standards Act, employers must pay the highest minimum wage that legally applies to a work location, whether set federally, by the state, or by a city or county ordinance.
New Mexico Tipped Minimum Wage
In New Mexico, tipped employees may be paid a direct cash wage of $3.00/hr. Employers may claim a tip credit of up to $9.00/hr, but the employee's total hourly earnings (direct wages + tips) must equal at least the full minimum wage of $12.00/hr. If tips fall short, the employer must make up the difference.
| Component | Rate | Notes |
|---|---|---|
| Direct cash wage | $3.00/hr | Minimum employer must pay directly |
| Tip credit | $9.00/hr | Maximum credit employer may claim |
| Total required | $12.00/hr | Wages + tips must reach this floor |
New Mexico Exempt Employee Salary Threshold (2026)
An "exempt" employee is a salaried worker who, by law, isn't entitled to overtime pay (time-and-a-half) for hours worked beyond 40 in a week. Whether a salaried employee actually qualifies as exempt depends on both their pay and their job duties. New Mexico follows the federal FLSA salary threshold. To qualify for the white-collar (executive, administrative, or professional) overtime exemption, salaried employees must earn at least $684/week ($35,568/year) in 2026.
City & County Minimum Wages in New Mexico
New Mexico permits cities and counties to set higher local minimum wage rates. The following cities have rates above the state minimum:
| City / County | 2026 Rate | Notes |
|---|---|---|
| Albuquerque | $12.00/hr (state rate) | The city's own minimum wage ordinance rate ($11.85/hr) is below the state minimum wage of $12.00/hr, so the state rate applies. |
| Santa Fe | $15.40/hr | The City of Santa Fe's Living Wage Ordinance set a local minimum wage of $15.40/hr effective March 1, 2026, well above the state rate. |
| Las Cruces | $13.01/hr | Las Cruces sets its own minimum wage, $13.01/hr as of 2026, above both the state and federal rates. |
| Rio Rancho | $12.00/hr (state rate) | Follows the New Mexico state minimum wage of $12.00/hr; no local ordinance. |
New Mexico Minimum Wage History
The following table shows minimum wage rates in New Mexico over the past several years.
| Year | Minimum Wage | Effective Date | Notes |
|---|---|---|---|
| 2026 | $12.00/hr | 2023-01-01 | |
| 2022 | $11.50/hr | 2022-01-01 | |
| 2020 | $9.00/hr | 2020-01-01 |
Frequently Asked Questions
The minimum wage in New Mexico is $12.00 per hour in 2026, effective 2023-01-01. Tipped employees may be paid $3.00 per hour provided tips bring total earnings to at least $12.00/hr.
New Mexico's state minimum wage remains $12.00/hr in 2026, unchanged since January 1, 2023. Unlike most states, New Mexico does not preempt local wage-setting: Santa Fe ($15.40/hr as of March 1, 2026) and Las Cruces ($13.01/hr) mandate higher local rates, while Albuquerque's local ordinance rate ($11.85/hr) is currently below the state rate, so the state rate governs there.
In New Mexico, tipped employees must be paid at least $3.00 per hour directly. Employers may claim a tip credit of up to $9.00/hr, but total compensation including tips must reach $12.00/hr.
New Mexico follows the federal FLSA salary threshold. Salaried exempt employees must earn at least $684/week ($35,568/year) to qualify for the white-collar overtime exemption in 2026.
Yes, some cities in New Mexico set higher local minimum wage rates. Santa Fe: $15.40/hr, Las Cruces: $13.01/hr.