Employer payroll taxes in New Mexico for 2026
On top of each paycheck, a New Mexico employer pays these taxes. None of them come out of the employee's pay. On a $60,000 salary they add $4,980.00 a year, so the employee costs $64,980.00.
| Employer tax | Rate | Wages taxed |
|---|---|---|
| Social Security | 6.2% | First $184,500 |
| Medicare | 1.45% | No limit |
| Federal unemployment (FUTA) | 0.6% | First $7,000 |
| New Mexico unemployment (SUTA) | 1% for new employers | First $34,800 |
New Mexico unemployment tax (SUTA)
New Mexico employers pay state unemployment tax on the first $34,800 of each employee's wages in 2026. A new employer starts at 1%, and experienced employers pay from 0.33% to 6.4% depending on their layoff history.
New employers pay 1% or their industry average, whichever is higher. Most industries are at 1%.
What an employee costs in New Mexico
Yearly employer taxes and total cost for a single filer paid every two weeks, at the new-employer unemployment rate, for an employer with 10 employees. Benefits and workers' compensation insurance are extra.
| Salary | Employer taxes | Total cost | Added to pay | Employee take-home |
|---|---|---|---|---|
| $30,000 | $2,637.00 | $32,637 | 8.8% | $25,616 |
| $40,000 | $3,450.00 | $43,450 | 8.6% | $33,221 |
| $50,000 | $4,215.00 | $54,215 | 8.4% | $40,792 |
| $60,000 | $4,980.00 | $64,980 | 8.3% | $48,357 |
| $75,000 | $6,127.50 | $81,128 | 8.2% | $58,854 |
| $100,000 | $8,040.00 | $108,040 | 8% | $75,216 |
| $125,000 | $9,952.50 | $134,953 | 8% | $91,515 |
| $150,000 | $11,865.00 | $161,865 | 7.9% | $107,377 |
Withholding from New Mexico paychecks
From the employee's pay you withhold federal income tax under the W-4, 6.2% Social Security, 1.45% Medicare and New Mexico income tax. Employees checking their own pay can use the New Mexico paycheck calculator. Running a bonus? Use the bonus payroll calculator.
New Mexico employer taxes compared with nearby states
The same $60,000 employee, at each state's new-employer unemployment rate. Of the states that border New Mexico, Utah has the lowest employer taxes.
| State | State unemployment | All employer taxes | Total cost |
|---|---|---|---|
| New Mexico | $348.00 | $4,980.00 | $64,980 |
| Arizona payroll calculator | $160.00 | $4,792.00 | $64,792 |
| Colorado payroll calculator | $1,197.30 | $5,829.30 | $65,829 |
| Oklahoma payroll calculator | $375.00 | $5,007.00 | $65,007 |
| Texas payroll calculator | $243.00 | $4,875.00 | $64,875 |
| Utah payroll calculator | $0.00 | $4,632.00 | $64,632 |
Sources
New Mexico unemployment and program rates come from the state's own 2026 figures: dws.nm.gov, dws.state.nm.us. Federal figures follow IRS Publication 15 and Publication 15-T. See how we calculate for the withholding method.