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Cost of hiring an employee in New Mexico

A full-time hire at $18/hour costs about $41,185 a year before benefits — $20.59 per hour actually worked with 10 days off.

Last updated October 28, 2026 · 2026 rates

SUTA new-employer rate
1.28%
incl. surcharges
SUTA wage base
$34,800
verified
Minimum wage
$12.00
verified
Workers' comp (typical)
$1.05/$100
rank 27/51 (1 = priciest)

Industry-average new-employer rate (DOL). Range 1.00–1.28% (secondary); upper used.

Minimum wage: Some cities/counties set higher local minimums.

1About the hire

Adjust tax rates (from your notices or quotes)

2What this employee costs you

Frequently asked questions

How much does it cost to hire an employee in New Mexico?

A full-time worker at $18.00/hour ($37,440 a year) with 10 PTO days costs about $41,185 a year before benefits: employer payroll tax $2,864, FUTA $42, New Mexico unemployment $445 and typical workers' comp $393. That's $20.59 per hour worked.

What is the New Mexico SUTA rate for new employers in 2026?

1.28% on the first $34,800 of each employee's wages (includes state surcharges per a secondary source; base rate per DOL varies by industry). Industry-average new-employer rate (DOL). Range 1.00–1.28% (secondary); upper used.

What is the New Mexico minimum wage in 2026?

$12.00 per hour. Some cities/counties set higher local minimums.

How much is workers' comp in New Mexico?

The 2024 Oregon premium-rate study puts New Mexico's all-industry index rate at $1.05 per $100 of payroll (rank 27 of 51; national median $1.09). Your real rate depends on job class and claims history.

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