New Mexico · 2026 and 2027
New Mexico employer payroll taxes and employee cost: SUTA 1%–1.28% on $34,800
In New Mexico, a $50,000 employee costs a new employer about $62,420 a year in 2026: 24.8% on top of pay for payroll taxes, unemployment insurance, workers' comp and health coverage. Change any input to see your own number.
Calculate the cost of an employee in New Mexico
Estimates for planning, not tax or legal advice. Rates change and some depend on your business; confirm yours with your state agencies, insurer or payroll provider.
What a New Mexico employer pays on top of pay
Every line of the calculator, explained, with the official source of each number.
- Social Security and Medicare
7.65% of pay
The employer matches the employee: 6.2% Social Security on pay up to $184,500 in 2026 ($192,300 in 2027) and 1.45% Medicare on all pay.
per Social Security Administration, as of Jan 1, 2026
- Federal unemployment tax (FUTA)
$42 per employee
6% of the first $7,000 of each employee's pay, less the 5.4% credit for paying New Mexico unemployment tax on time.
per Internal Revenue Service, as of Jan 1, 2026
- New Mexico unemployment insurance (SUTA)
1%–1.28% of $34,800, by industry
New employers pay the rate New Mexico publishes for their industry: 1% for most industries, up to 1.28% (Public Administration (NAICS 92)), on the first $34,800 of each employee's pay in 2026. Pick yours in the calculator. After two to three years the rate follows your own claims history.
per U.S. Department of Labor, Employment and Training Administration, as of Jan 1, 2026; per New Mexico Department of Workforce Solutions, as of Jan 1, 2026
- State paid leave and disability premiums
None
New Mexico has no employer-paid family leave or disability insurance premium among the state programs we track.
- Paid sick leave
Not verified
Paid sick leave: the official source could not be read on 2026-10-23, so no sick-leave cost is added. It will be added after the source is verified.
- Workers' compensation
$1.05 per $100 of payroll
Index rate for a standard mix of job classes: rank 27 of 51 (1 = highest) and 96% of the national median in the 2024 study. Your premium depends on your job classes and claims history.
per Oregon Department of Consumer and Business Services, as of Jan 1, 2024
- Health insurance (employer share)
$7,680 single / $19,721 family
Average employer contribution per enrolled employee a year at New Mexico private-sector employers that offer coverage, 2025 survey.
per Agency for Healthcare Research and Quality (MEPS-IC), as of Jan 1, 2025
- Minimum wage
$12 in 2026, $12 in 2027
New Mexico's rate. Some cities and counties set higher rates. No change scheduled for 2027 as of Nov 3, 2026.
per U.S. Department of Labor, Wage and Hour Division, as of Nov 3, 2026
Checked against each source on Oct 23, 2026. Press image of these numbers, free to use with attribution: PNG · SVG.
Two worked examples in New Mexico
Both for a new employer with 10 employees in a general industry in 2026, with single health coverage at the state average.
Salaried employee at $50,000
A $50,000 salary, 40 hours a week.
| Pay for hours worked2,080 hours | $50,000 |
|---|---|
| Social Security (employer share)6.2% of $50,000 | $3,100 |
| Medicare (employer share)1.45% of $50,000 | $725 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)1% of $34,800 | $348 |
| Workers' compensation (state index rate)$1.05 per $100 of payroll | $525 |
| Health insurance (single coverage, state average)average employer contribution | $7,680 |
| Total cost a year | $62,420 |
24.8% on top of pay · $30.01 per hour worked
Hourly employee at $18 an hour
$18 an hour for 40 hours a week, 52 weeks.
| Pay for hours worked2,080 hours | $37,440 |
|---|---|
| Social Security (employer share)6.2% of $37,440 | $2,321 |
| Medicare (employer share)1.45% of $37,440 | $543 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)1% of $34,800 | $348 |
| Workers' compensation (state index rate)$1.05 per $100 of payroll | $393 |
| Health insurance (single coverage, state average)average employer contribution | $7,680 |
| Total cost a year | $48,767 |
30.3% on top of pay · $23.45 per hour worked
What changes for New Mexico employers in 2027
- The Social Security wage base rises from $184,500 to $192,300: up to $484 more employer tax for employees paid above it. per Social Security Administration, as of Jan 1, 2027
Not announced yet
- 2027 unemployment insurance wage base: not announced yet; 2026: $34,800. per U.S. Department of Labor, Employment and Training Administration, as of Jan 1, 2026
- 2027 new-employer unemployment rate: not announced yet; 2026: 1%. per New Mexico Department of Workforce Solutions, as of Jan 1, 2026
- 2027 new-employer rate, construction: not announced yet; 2026: 1.21%. per New Mexico Department of Workforce Solutions, as of Jan 1, 2026
Only changes already official on Oct 23, 2026. Most states publish next year's unemployment insurance rates in November and December; this page is updated when they do.
Frequently asked questions
How much does it cost to hire an employee in New Mexico?
About $62,420 a year in 2026 for a $50,000 employee of a new New Mexico employer with 10 staff: $12,420 above pay, of which $7,680 is health coverage, $525 workers' comp and $348 New Mexico unemployment tax. At $18 an hour full time: $48,767.
What payroll taxes do employers pay in New Mexico?
New Mexico new employers pay $4,215 yearly on a $50,000 salary, $348 of it state unemployment tax.
What is the New Mexico SUTA rate for new employers in 2026?
It depends on the industry: New Mexico publishes 20 new-employer rates for 2026, 1% for most industries and from 1% to 1.28% (Public Administration (NAICS 92)), on the first $34,800 of each employee's pay. Pick yours in the calculator.
Is paid sick leave required in New Mexico?
New Mexico requires paid leave; we could not verify its official source on Oct 23, 2026.
How much does workers' comp cost in New Mexico?
$1.05 per $100 of payroll at New Mexico's index rate (rank 27 of 51, 96% of the median): about $525 on $50,000 of pay.
How much do New Mexico employers pay for health insurance?
$7,680 a year per employee with single coverage and $19,721 with family coverage, the average New Mexico private-employer share of $9,447 and $26,482 premiums in 2025.
More employer cost pages
States with a similar employer cost
Minimum wage in New Mexico
Data and rules for every state
Terms on this page
Software and services for these costs
- Payroll Software
Calculates and files these payroll taxes for every state you hire in.
- PEO Services
Takes on payroll taxes, workers' comp and benefits, often at group rates.
- Benefits Administration
Runs the health plan and leave programs behind the benefits lines.
Benefits and workers’ comp are most of this cost
A PEO pools employers for health insurance and workers’ comp, often at group rates. Compare PEOs we research, with verified prices and features.