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New Mexico Minimum Wage 2026: $12.00/hr

New Mexico workers must be paid at least $12.00 an hour, $4.75 above the federal $7.25 minimum.

Data updated

Key facts for New Mexico

Minimum wage
$12.00/hr
In effect since
Tipped cash wage
$3.00/hr
Compared with federal
+$4.75 vs the federal $7.25
Overtime
1.5x after 40 hrs/week

Source

Rule
New Mexico minimum wage law
Published by
dws.nm.gov
Last updated
How we source and check data

Check your pay against these rules

Hourly rate and hours in, weekly pay with New Mexico overtime rules out.

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The short answer

New Mexico's minimum wage is $12.00/hr in 2026, $4.75 above the federal $7.25 minimum , ranked #25 of 51 US jurisdictions. The tipped cash wage is $3.00/hr.

How the New Mexico minimum wage works

In New Mexico, the minimum wage is $12.00 per hour, effective January 1, 2023. New Mexico sets its own minimum wage, and a tip credit is allowed: the tipped cash wage is $3.00 per hour, with tips expected to bring total pay to at least the full minimum wage. Overtime is paid at 1.5× the regular rate after 40 hours in a workweek. This reflects a state overtime law.

New Mexico reached $12.00 on January 1, 2023. Tipped minimum cash wage is $3.00/hr. Some cities (Santa Fe, Albuquerque, Las Cruces) have higher local rates.

How New Mexico compares

State rate
$12.00/hr
Federal minimum
$7.25/hr
Difference
+$4.75 (+65.5%)
National rank
#25 of 51

Ranked by 2026 effective minimum wage across all 51 U.S. states and jurisdictions. Federal comparison source: U.S. Department of Labor.

New Mexico overtime rules

Weekly overtime threshold
40 hours (1.5x)
Governing law
State overtime law

New Mexico requires 1.5x the regular rate for hours over 40 in a workweek. No daily overtime.