New Mexico Paycheck Calculator
Estimate New Mexico take-home pay including federal, state, and FICA taxes, considering pre-tax deductions and different pay frequencies accurately today.
New Mexico Income Tax Rate
New Mexico taxes wages using progressive brackets. Employers start from gross pay, subtract eligible pre-tax benefits—traditional 401(k), Section 125 health premiums, HSA/FSA, and commuter plans—then apply federal withholding, FICA, and New Mexico tables using your state Form A-4 elections and pay frequency. Supplemental wages (bonuses/commissions) may be withheld under the percentage or aggregate method. New Mexico does not levy municipal wage income taxes, so your main statutory layers are federal and state. The table lists the top individual rate by year: after many years at 4.9%, reforms added a higher bracket beginning in 2021. Your effective rate will usually be lower than the top rate, depending on income, deductions, and credits.
| Year | Top Rate |
|---|---|
| 2016 | 4.90% |
| 2017 | 4.90% |
| 2018 | 4.90% |
| 2019 | 4.90% |
| 2020 | 4.90% |
| 2021 | 5.90% |
| 2022 | 5.90% |
| 2023 | 5.90% |
| 2024 | 5.90% |
| 2025 | 5.90% |
New Mexico Median Household Income
New Mexico’s median household income has risen over the past decade, with growth led by healthcare, energy, advanced manufacturing, logistics, defense, and tourism. Pandemic-era volatility moderated as labor markets tightened, particularly around Albuquerque, Santa Fe, and Las Cruces. Figures below are nominal, directional benchmarks useful for budgeting or offer comparisons. For purchasing power, compare “real” (inflation-adjusted) dollars and weigh local living costs—housing, transportation, childcare, and healthcare—which vary widely by county. Household size and employer benefits meaningfully affect take-home value. Use statewide medians as a starting point, then pair with the latest county or metro estimates when evaluating relocation or wages.
| Year | Income |
|---|---|
| 2016 | $47,100 |
| 2017 | $49,200 |
| 2018 | $50,800 |
| 2019 | $53,100 |
| 2020 | $54,500 |
| 2021 | $56,900 |
| 2022 | $59,400 |
| 2023 | $61,600 |
| 2024 | $63,200 |
| 2025 | $64,500 (prelim.) |
New Mexico Federal Insurance Contributions Act (FICA)
FICA funds Social Security and Medicare and applies to New Mexico wages like everywhere in the U.S. Employees pay 6.2% Social Security on wages up to the federal wage base (employers match) and 1.45% Medicare on all wages (employers match). High earners owe an additional 0.9% Medicare surtax above federal thresholds; employers do not match that surtax. Section 125 health premiums often reduce both income-tax and FICA wages, while traditional 401(k) lowers income-tax wages but not FICA. Expect pay stubs to itemize Social Security, Medicare, federal income tax, and New Mexico income tax separately, alongside pre-tax and post-tax deductions and year-to-date totals.
New Mexico Number of Cities with Local Income Taxes
New Mexico does not impose municipal wage income taxes. Cities rely on other revenue (e.g., gross receipts, property), so payroll withholding generally includes federal, FICA, and state income tax only.
| Locality | Resident Rate | Nonresident Rate |
|---|---|---|
| All New Mexico cities/counties | None | None |
How Your New Mexico Paycheck Works
Your pay period starts with gross wages. Payroll subtracts pre-tax benefits—traditional 401(k), HSA/FSA, commuter benefits, and pre-tax insurance—to reach taxable wages. Withholding then includes federal income tax (W-4), Social Security and Medicare (FICA), and New Mexico state income tax using your A-4 elections and pay frequency. Because there is no local wage tax, layers are simpler than in many states. Post-tax items—Roth 401(k), garnishments, union dues, charitable gifts—come after taxes and don’t reduce taxable wages. Pay schedule (weekly, biweekly, semimonthly, monthly) alters per-check cash flow but not annual tax. Review stubs after life events or benefit changes.
New Mexico Wage and Hour Laws: Overtime, Pay Frequency
Overtime: New Mexico follows FLSA—most non-exempt employees earn 1.5× their regular rate for hours worked over
40 in a workweek; exemptions apply where duties and salary thresholds are met.
Pay frequency: Employers must establish a regular payday and pay on consistent intervals; biweekly or semimonthly schedules are common.
Final-pay timing and itemized wage-statement rules apply under state and federal law—check employer policy and any contract terms for specifics.
FAQs
How do I use the New Mexico Paycheck Calculator?
Enter gross pay, pay schedule, A-4 details, pre-tax benefits, and post-tax deductions to estimate federal, FICA, and New Mexico withholding.
What are New Mexico’s current income tax brackets?
Progressive brackets with a top rate near 5.9% in recent years; your effective rate depends on income and credits.
Do any New Mexico cities have a wage income tax?
No. Municipalities do not levy percent-of-wages income taxes; withholding covers federal, FICA, and state only.
How do pre-tax 401(k) and HSA contributions affect take-home pay?
They lower taxable wages for income tax, increasing net pay. 401(k) doesn’t reduce FICA; many health premiums do.
Are bonuses taxed differently in New Mexico?
State withholding follows New Mexico tables; federally, employers may use percentage or aggregate methods for supplemental wages.
Why did my New Mexico withholding change this year?
Form updates, benefit elections, rate tweaks, or supplemental pay can alter per-check results even at the same salary.
What appears on a New Mexico pay stub?
Typically Social Security, Medicare, federal tax, New Mexico tax, pre-tax deductions, post-tax deductions, YTD totals, and net pay.
What is New Mexico’s minimum wage situation?
New Mexico sets a statewide minimum wage; employers must pay at least the current effective rate or higher if applicable.
How often must I be paid in New Mexico?
Employers maintain a regular payday and consistent intervals—commonly biweekly or semimonthly—subject to timing and statement rules.