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NM

New Mexico Nanny Tax Guide

New Mexico has a progressive income tax with rates ranging from 1.7% to 5.9%. The state has no disability or paid leave mandates for household employers.

State Income Tax
State Unemployment
Disability Insurance
Paid Family Leave

Minimum Wage

$12.00/hour

SUTA Rate Range

0.33% - 5.4%

Key Things to Know

  • Progressive state income tax (1.7% - 5.9%)
  • State minimum wage is $12.00/hour
  • No disability or paid leave requirements
  • High SUI wage base ($31,700)

New Mexico Employer Requirements

State Income Tax

New Mexico uses progressive tax brackets: 1.7% to $5,500, 3.2% to $11,000, 4.7% to $16,000, 4.9% to $210,000, and 5.9% above.

State Unemployment Insurance

Employers pay SUI tax on the first $31,700 of wages. New employer rate is 1.0%, with rates ranging from 0.33% to 5.4% based on experience.

Workers' Compensation

New Mexico requires workers' compensation for household employees if you pay $1,000 or more in a calendar quarter.

What will it cost?

Wondering what you'll actually owe as a New Mexico employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

Verified accurate as of February 2026Sources: New Mexico tax agency, IRS Publication 926

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