New Mexico Payroll Taxes for Employers (2026): SUTA and State Programs
Last updated: 2026-10-12 · 2026 rates checked against NM Dept. of Workforce Solutions's own pages and the other official sources below
New Mexico employers pay state unemployment tax (SUTA) on the first $34,800 of each employee's wages in 2026, and new employers pay 1% — at most $348.00 per employee for the year. Every New Mexico employer also pays federal Social Security (6.2% up to $184,500), Medicare (1.45%) and FUTA (0.6% on the first $7,000).
What will payroll taxes cost me in New Mexico?
Enter your headcount and average pay to see the employer's share of New Mexico and federal payroll taxes for 2026. Change the SUTA rate to the one on your rate notice.
New Mexico employer payroll tax estimator · 2026
Runs in your browser · nothing is sent anywhere| Tax | Per year |
|---|---|
New Mexico unemployment (SUTA) 1% × first $34,800 per employee | $1,740 |
Federal unemployment (FUTA) 0.6% × first $7,000 after the full state credit | $210 |
Social Security (employer half) 6.2% × first $184,500 | $15,500 |
Medicare (employer half) 1.45% of all wages | $3,625 |
| Total employer taxes | $21,075 |
| Per employee | $4,215 |
Assumes every employee earns the average and works in New Mexico all year. Workers' comp premiums and benefits are extra — the payroll cost calculator adds them.
New Mexico unemployment insurance tax (SUTA) in 2026
- 2026 taxable wage base
- $34,800 per employee (12th highest of 51)
- New-employer rate
- 1%
- How the new-employer rate works
- Greater of 1.0% or the industry average: 1.00% for most sectors in 2026 (e.g., 1.19% admin/support, 1.21% construction, 1.15% transportation).
- Most a new employer pays per employee
- $348.00 (1% × $34,800)
- Experience-rated range (2026, as published)
- 0.33% to 5.4%. Some employers also pay an excess-claims premium of up to 1%.
- 2025 average employer rate
- 0.93% of taxable wages (U.S. DOL)
- Employee contribution
- None — employer-paid only
Register with NM Dept. of Workforce Solutions when you first pay wages in New Mexico; you get an account number for quarterly wage reports and tax payments.
Federal payroll taxes every New Mexico employer pays
- Social Security: 6.2% from you and 6.2% withheld from the employee, on wages up to $184,500 in 2026.
- Medicare: 1.45% each on all wages; withhold an extra 0.9% (employee only) on wages over $200,000.
- FUTA: 6.0% of the first $7,000 per employee, less up to 5.4% credit for New Mexico unemployment tax paid on time = 0.6%, or $42 per employee.
- Federal income tax withholding from each paycheck based on the employee's Form W-4.
Next for New Mexico employers: New Mexico paycheck calculator (employee withholding) · New Mexico new hire reporting · New Mexico payday & final paycheck rules · New Mexico workers' comp · full payroll cost calculator
New Mexico payroll tax FAQ
What is the New Mexico SUTA rate for new employers in 2026?
1%. Greater of 1.0% or the industry average: 1.00% for most sectors in 2026 (e.g., 1.19% admin/support, 1.21% construction, 1.15% transportation).
What is the New Mexico SUTA wage base for 2026?
$34,800 per employee. Once an employee's 2026 wages pass that amount, you stop paying New Mexico unemployment tax on them for the rest of the year. That is the 12th highest wage base of the 50 states and DC (the federal FUTA base is $7,000).
Do employees pay unemployment tax in New Mexico?
No. In New Mexico unemployment tax is paid only by the employer; it can't be deducted from pay. Only Alaska, New Jersey and Pennsylvania collect an employee share.
What other payroll taxes do New Mexico employers pay?
For 2026, New Mexico has no statewide paid-leave or disability payroll tax, so the state-level employer tax is unemployment insurance. You still withhold any state income tax from employees' pay.
How much FUTA do New Mexico employers pay?
0.6% of the first $7,000 of each employee's wages — $42 per employee per year — after the full 5.4% credit for paying New Mexico unemployment tax on time. New Mexico is not a credit-reduction state for 2026.
How does my New Mexico SUTA rate change after the first years?
New employers keep the new-employer rate until they have enough history to be experience-rated (the timing is set by state law). After that, NM Dept. of Workforce Solutions assigns a rate each year based on your layoffs and benefit charges; published 2026 rates run from 0.33% to 5.4% (Some employers also pay an excess-claims premium of up to 1%). Use the rate on your annual rate notice. The 2025 average employer rate in New Mexico was 0.93% of taxable wages.
Official Sources
Figures checked against these sources on 2026-10-12Related Resources on This Site
More for your state
- GuideNew Mexico small business guide
- Workers' CompNew Mexico workers comp requirements
- Business LicenseNew Mexico business license requirements
- Resale PermitNew Mexico resale certificate & seller's permit
- LLChow to form an LLC in New Mexico
- FormationNew Mexico annual report due date, fee & franchise tax
- Sales TaxNew Mexico sales tax rates & rules
- Minimum WageNew Mexico minimum wage
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Payroll taxes in other states
All states in one table, plus federal deposit rules and deadlines →
General information, not tax advice. Rates change every year; confirm yours on the notice from NM Dept. of Workforce Solutions before filing.