New Mexico Payroll · Graduated 1.5%–5.9% · Federal W-4 · IRS Publication 15-T
New Mexico Paycheck Calculator 2025
Estimate your New Mexico take-home pay for hourly or salaried work in a single form. The calculator deducts federal income tax withholding, Social Security, Medicare, and the graduated New Mexico income tax using the Taxation and Revenue Department FYI-104 percentage method. New Mexico has no separate state W-4, so withholding follows your federal W-4 filing status. Uses 2025 IRS Publication 15-T and the New Mexico withholding tables in effect for 2025.
Pay Details
New Mexico has no state W-4, so the same filing status drives both federal and New Mexico withholding.
Check this on Form W-4 if you hold two jobs or your spouse also works. It switches to the higher federal Step 2 withholding schedule.
W-4 Adjustments (Optional)
Annual dependent credit total (e.g. $2,000 per child under 17)
Step 4c additional federal withholding per paycheck
New Mexico Tax (FYI-104)
Only affects married filing jointly. New Mexico lets a married employee elect the higher single rate; two-earner couples often should, because the married table's brackets are wider.
Additional New Mexico withholding requested on your federal W-4 (Step 4c) marked for New Mexico.
Enter your pay details and click Calculate to see your take-home pay breakdown.
Want the full New Mexico payroll picture, including how the withholding reconciles on Form PIT-1, why New Mexico has no state W-4, the employee Workers' Compensation fee, and the employer unemployment obligations? Read the New Mexico Payroll Taxes guide.
New Mexico Payroll Taxes Guide →Short Answer
This New Mexico paycheck calculator estimates net take-home pay after federal income tax withholding, Social Security (6.2%), Medicare (1.45%), and the graduated New Mexico income tax. New Mexico withholds by annualizing wages, then applying the 1.5% to 5.9% FYI-104 percentage-method schedule for your federal W-4 filing status. For a single New Mexico worker earning $65,000 per year paid biweekly, gross pay is about $2,500 per period, and net take-home is roughly $1,993 after about $227 of federal withholding, FICA, and about $88 of New Mexico income tax. New Mexico has no state W-4, no local wage tax, and no state disability, family leave, or employee unemployment deduction.
Key Takeaways
- New Mexico withholds a graduated income tax on every paycheck. This calculator applies the Taxation and Revenue Department FYI-104 percentage method: annualize wages, then apply the 1.5% to 5.9% schedule for your filing status and divide by pay periods.
- New Mexico has no state W-4. Employers use the filing status on your federal Form W-4, and there are no state withholding allowances. The withholding table's zero-tax first band ($7,500 single, $15,000 married on the 2025 annual table) is where the New Mexico standard deduction is built in.
- New Mexico rates are 1.5%, 3.2%, 4.3%, 4.7%, 4.9%, and a 5.9% top rate. A single filer reaches the 4.9% band around $74,000 of annual wages, so most full-time workers see an effective New Mexico rate in the 3% to 5% range.
- A married filer can elect the higher single rate. Two-earner couples usually should, because the married table's brackets are wider and both spouses using the married rate can under-withhold and owe at filing.
- There is no local city or county wage tax anywhere in New Mexico, and no reciprocity with any state. A separate $2.00-per-quarter Workers' Compensation fee is deducted once a quarter, not from every check, so it is not in the per-paycheck figure.
- Federal income tax uses the IRS Publication 15-T percentage method. Social Security is 6.2% up to the 2025 wage base of $176,100; Medicare is 1.45% with no cap plus a 0.9% surtax that employers withhold on wages above $200,000. For supplemental pay use the Bonus Tax Calculator and RSU Tax Calculator.
2025 New Mexico Payroll Tax Quick Reference
| Tax | Rate | Wage Base / Threshold | Notes |
|---|---|---|---|
| Federal Income Tax | 10%–37% | No cap | Graduated brackets. Based on W-4 filing status and Publication 15-T percentage method tables. |
| Social Security (OASDI) | 6.2% employee | $176,100 (2025) | Withholding stops at wage base. Employer matches 6.2%. |
| Medicare (HI) | 1.45% employee | No limit | Employer matches 1.45%. |
| Additional Medicare Tax | 0.9% | $200,000 single/HOH; $250,000 MFJ; $125,000 MFS | Employee only. Employer withholds once individual wages exceed $200,000 in the calendar year. |
| New Mexico Income Tax | 1.5%–5.9% | Percentage-method schedule | Graduated schedule. Withheld via the FYI-104 percentage method on your federal W-4 filing status. |
| NM zero-tax band (built-in std deduction) | – | $7,500 / $15,000 / $11,250 | Annual wages under this band withhold $0. Single / married / head of household (2025). |
| Workers' Compensation fee (employee) | $2.00 / quarter | Per employee | Withheld once a quarter, not every paycheck. Employer adds $2.30 plus a $0.30 Uninsured Employers' Fund share. |
| Employee disability / family leave | None | – | No employee deduction. New Mexico has no state disability or paid family leave program. |
| Employee unemployment (UI) | None | – | Unemployment is employer-funded; the 2026 taxable wage base is $34,800. |
| Local wage income tax | None | – | No city or county wage tax anywhere in New Mexico. |
How This Calculator Works
Hourly Mode: Gross Pay Per Period
Gross pay per period equals the hourly rate multiplied by hours worked per week, then scaled to the pay period. For biweekly pay: hourly rate × hours per week × 2. For weekly: hourly rate × hours per week. For semi-monthly and monthly: hourly rate × hours per week × (52 ÷ periods per year).
Salary Mode: Gross Pay Per Period
Gross pay per period equals annual salary divided by the number of pay periods per year. Weekly: ÷ 52. Biweekly: ÷ 26. Semi-monthly: ÷ 24. Monthly: ÷ 12.
Social Security Tax
Social Security is 6.2% of annualized gross wages up to the $176,100 wage base for 2025. The per-period amount is the annualized Social Security tax divided by pay periods. This calculator does not track year-to-date cumulative wages, so for workers approaching the wage base, actual withholding will stop mid-year once the limit is reached.
Medicare Tax
Standard Medicare is 1.45% on all gross wages. The calculator adds the 0.9% Additional Medicare Tax on annualized wages above $200,000, matching the employer withholding rule in IRS Topic 560: employers withhold the surtax once wages exceed $200,000 in a calendar year regardless of filing status. Your final liability on Form 8959 uses filing-status thresholds ($200,000 single/HOH, $250,000 MFJ, $125,000 MFS), so married filers may reconcile the difference at filing.
Federal Income Tax Withholding
The calculator follows IRS Publication 15-T Worksheet 1A (Percentage Method for Automated Payroll Systems) for 2025:
- Annualize the per-period gross pay (multiply by pay periods per year) - line 1c.
- Add Step 4a other income; subtract Step 4b additional deductions - lines 1d-1f.
- Subtract the line 1g allowance: $12,900 for married filing jointly or $8,600 otherwise. If the W-4 Step 2 box is checked, subtract $0 instead. The result is the Adjusted Annual Wage Amount (line 1i).
- Apply the Annual Percentage Method table for the W-4 filing status - the STANDARD schedule, or the Step 2 Checkbox schedule when the Step 2 box is checked - to get the tentative annual withholding (line 2g), then divide by pay periods (line 2h).
- Subtract Step 3 dependent credits divided by pay periods (line 3c).
- Add Step 4c extra withholding per period (line 4b).
New Mexico Income Tax Withholding
New Mexico withholds income tax using the percentage method in the New Mexico Taxation and Revenue Department publication FYI-104, New Mexico Withholding Tax. New Mexico has no state W-4, so the employer uses the filing status on your federal Form W-4 and there are no state withholding allowances. The steps are:
- Annualize the per-period gross pay (multiply by pay periods per year).
- Apply the graduated annual withholding schedule below for your federal W-4 filing status (single, married, or head of household). The zero-tax first band builds in the New Mexico standard deduction, so it is not subtracted separately.
- Divide by pay periods to get the per-period withholding, then add any extra New Mexico withholding you requested.
| Annual wages (single, 2025) | Withholding |
|---|---|
| $0 to $7,500 | $0 |
| $7,500 to $13,000 | 1.5% of the excess over $7,500 |
| $13,000 to $24,000 | $82.50 + 3.2% of the excess over $13,000 |
| $24,000 to $41,000 | $434.50 + 4.3% of the excess over $24,000 |
| $41,000 to $74,000 | $1,165.50 + 4.7% of the excess over $41,000 |
| $74,000 to $217,500 | $2,716.50 + 4.9% of the excess over $74,000 |
| Over $217,500 | $9,748.00 + 5.9% of the excess over $217,500 |
These are the New Mexico FYI-104 percentage-method withholding rates for the Annual Payroll Period (2025). The married and head-of-household schedules use the same rates with wider bands (the married zero-tax band is $15,000). New Mexico also publishes shorter per-frequency tables (weekly, biweekly, semi-monthly, monthly); because those tables round their bracket constants to the period, an employer using them may withhold a few cents more or less per check than this annualized computation. Both are approved FYI-104 methods and reconcile on your Form PIT-1 return, where the statutory brackets, standard deduction, and credits apply.
What New Mexico Does Not Deduct
New Mexico has no state disability insurance, no paid family leave payroll deduction, and no employee unemployment tax. Unemployment insurance is funded entirely by employers through the New Mexico Department of Workforce Solutions. There is also no local wage tax anywhere in New Mexico, so the only recurring New Mexico line on a pay stub is the state income tax. The one extra item is the $2.00 Workers' Compensation Assessment Fee, which appears once a quarter rather than on every check.
Real-World Paycheck Scenarios
Scenario 1: Single Worker Paid Biweekly
Dylan earns $65,000 per year at a firm in Albuquerque. He is paid biweekly and files single on his federal W-4. His biweekly gross is $65,000 ÷ 26 = $2,500.00.
New Mexico income tax detail (annualized): on the single schedule $65,000 falls in the $41,000 to $74,000 band, so the annual withholding is $1,165.50 + 4.7% of ($65,000 − $41,000) = $2,293.50 for the year, divided by 26 = $88.21 per paycheck. Dylan's effective New Mexico rate is about 3.5% of gross. There are no disability, family leave, or unemployment lines, money a worker in New Jersey or Washington would see deducted.
Scenario 2: Married One-Earner Household
Sara earns $95,000 as a project manager in Las Cruces. She is paid biweekly, is married filing jointly on her federal W-4, and her spouse has no income, so New Mexico uses the married rate. Her biweekly gross is $95,000 ÷ 26 = $3,653.85.
Sara's New Mexico tax: on the married schedule $95,000 falls in the $65,000 to $115,000 band, so the annual withholding is $1,739.00 + 4.7% of ($95,000 − $65,000) = $3,149.00 for the year, divided by 26 = $121.12. The married rate is only the right choice because Sara's spouse has no income. If both spouses worked, electing the New Mexico single rate would raise her withholding to about $144 per period, roughly $596 a year, and keep the household from landing short on Form PIT-1.
Practitioner Insight
The first thing we explain about New Mexico is that there is no state withholding form. New Mexico reads the filing status off your federal W-4, so if you want to change your New Mexico withholding you change the federal W-4 (New Mexico suggests keeping a copy marked "For New Mexico State Withholding Only"). Employees coming from a state with its own certificate keep asking for the New Mexico form; there is not one, and there are no state allowances to claim.
The second pattern is the two-earner married couple. New Mexico's married schedule has wider bands than the single schedule, so when both spouses are withheld at the married rate each employer withholds as if that salary were the household's only income, and the couple can owe at filing. The fix is on the federal W-4 itself: mark the Step 2 box or elect the New Mexico single rate so both jobs are withheld at the steeper single schedule.
The third item is the Workers' Compensation fee. New Mexico is one of the few states that takes a small workers' comp assessment straight from the employee, $2.00 a quarter, deducted from the last paycheck of the quarter. Clients see it once and assume it is a mistake; it is a real state fee, and it is separate from the income tax on the stub.
When This Calculator Gives a Less Accurate Estimate
- Pre-tax deductions not entered: A 401(k) or 403(b) contribution and Section 125 medical premiums reduce the wages subject to both federal and New Mexico income tax withholding. This calculator does not model pre-tax deductions, so actual income tax withholding is lower and net pay is typically higher than the estimate.
- Two-earner married households: New Mexico's married schedule has wider brackets than the single schedule. If both spouses are withheld at the married rate, combined withholding can fall short. Choose the single rate election in the New Mexico Tax section, or mark the federal W-4 Step 2 box.
- Per-frequency versus annualized tables: New Mexico also publishes shorter per-pay-period tables. An employer using them can differ by a few cents from the annualized percentage-method computation this calculator uses; both are approved FYI-104 methods and reconcile on Form PIT-1.
- Workers' Compensation fee: The $2.00 employee Workers' Compensation Assessment Fee is deducted once a quarter, from the last paycheck of the quarter, not from every check. It is not included in the per-paycheck figure here.
- Year-to-date Social Security cap: The calculator annualizes Social Security evenly. For a worker who passes the $176,100 wage base mid-year, actual Social Security withholding stops at that point rather than spreading across every paycheck.
- Supplemental wages: Bonuses and commissions withheld with the federal flat-percentage method use a flat 5.9% New Mexico rate rather than the regular tables. For the federal supplemental math on a bonus, use the Bonus Tax Calculator.
Frequently Asked Questions
How is take-home pay calculated in New Mexico?
New Mexico take-home pay equals gross pay minus federal income tax withholding, Social Security (6.2%), Medicare (1.45%), and New Mexico income tax withholding. Federal withholding uses IRS Publication 15-T. New Mexico income tax is withheld with the Taxation and Revenue Department FYI-104 percentage method: annualize wages, then apply the graduated 1.5% to 5.9% schedule for your federal W-4 filing status and divide by pay periods. New Mexico has no local wage income tax and no employee-paid disability, family leave, or unemployment contribution.
Does New Mexico have a state W-4?
No. New Mexico does not have a state equivalent of the federal Form W-4. Employers withhold New Mexico income tax using the filing status on the employee's federal W-4. New Mexico recommends completing a copy of the federal W-4 marked "For New Mexico State Withholding Only" if you want a different New Mexico result, but there is no separate state certificate and no state withholding allowances.
What are New Mexico's income tax withholding rates for 2025?
New Mexico withholds on a graduated schedule with rates of 1.5%, 3.2%, 4.3%, 4.7%, 4.9%, and a 5.9% top rate. The first band of the withholding table is a zero-tax band that builds in the New Mexico standard deduction, so a single filer owes no New Mexico withholding on the first $7,500 of annual wages and a married filer owes none on the first $15,000. These are the FYI-104 percentage-method rates for wages paid in 2025.
Does New Mexico have a local city income tax?
No. New Mexico has no municipal or county wage income tax withheld from employees anywhere in the state, including Albuquerque, Las Cruces, Rio Rancho, Santa Fe, and Roswell. A New Mexico pay stub shows federal taxes and the state income tax, with no city or local wage line. New Mexico does levy a gross receipts tax on businesses, but that is not withheld from wages.
Is there a workers' compensation fee on a New Mexico paycheck?
Yes. New Mexico charges a Workers' Compensation Assessment Fee of $2.00 per employee per calendar quarter that the employer withholds from the employee, alongside a $2.30 employer share and a $0.30 Uninsured Employers' Fund share. It is deducted once a quarter, from the last paycheck of the quarter for employees who work the last working day, not from every check, so this calculator does not include it in the per-paycheck figure.
What is the Social Security wage base for 2025?
The Social Security wage base for 2025 is $176,100. Social Security tax at 6.2% applies to wages up to this amount, and withholding stops once cumulative wages exceed $176,100 for the year. Medicare has no wage base limit and continues at 1.45% on all wages. Employers withhold an additional 0.9% Medicare surtax on wages above $200,000 regardless of filing status; final liability thresholds are $250,000 for married filing jointly and $125,000 for married filing separately.
What To Do Next
If your New Mexico paycheck estimate looks off, first confirm the filing status on your federal W-4 is what you intended, since New Mexico withholding follows it directly, then check whether pre-tax benefit deductions (401k, health insurance) are lowering your taxable wages. If you are married and both spouses work, consider electing the New Mexico single rate or marking the federal W-4 Step 2 box so you are not short at filing. To see how your withholding connects to your year-end return, read the New Mexico Payroll Taxes guide and our How Payroll Taxes Work guide.
For hourly workers who also receive overtime, the Hourly Paycheck Calculator lets you model specific hours and frequencies. For a generic multi-state view, use the Paycheck Calculator. To understand every line item on your New Mexico pay stub, see our How to Read a Pay Stub guide.
If you have self-employment income in addition to wages, the 1099 Tax Calculator estimates your full federal tax burden including self-employment tax. If you need to estimate quarterly payments on that income, use the Quarterly Tax Calculator. To track a filed state or federal refund, use the Refund Tracker.
Sources & Editorial Disclosure
- New Mexico Taxation and Revenue Department, FYI-104 New Mexico Withholding Tax (Rev. 11/2025, effective January 1, 2026, and Rev. 11/2024 for 2025): the percentage-method computation, the no-state-W-4 rule, the annual and per-frequency rate schedules (1.5% to 5.9%), the standard-deduction zero-tax band, and the 5.9% supplemental flat rate
- New Mexico Taxation and Revenue Department, Withholding Tax and Workers' Compensation: the Workers' Compensation Assessment Fee, $2.00 employee and $2.30 employer per quarter plus the $0.30 Uninsured Employers' Fund share
- New Mexico Department of Workforce Solutions, Unemployment Insurance Tax: employer-funded unemployment, 2026 taxable wage base $34,800, new-employer rate
- IRS Publication 15-T (2025), Employer's Tax Guide to Federal Income Tax Withholding
- IRS Topic 751, Social Security and Medicare Withholding Rates
- Social Security Administration, 2025 Wage Base ($176,100)
- Authored by Munib Ur Rehman · Reviewed by Nausheen Shahid, LMN Tax Inc. Not affiliated with the IRS or the New Mexico Taxation and Revenue Department. For informational purposes only.