What it costs to live and work in New Mexico: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for your monthly budget.
| New Mexico | Source | |
|---|---|---|
| Minimum wage | $12.00 an hour | US Department of Labor, State Minimum Wage Laws (updated July 1, 2026) |
| State income tax | 1.5 % to 5.9 % | Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 |
| State sales tax | 4.875 % | Tax Foundation, State and Local Sales Tax Rates, Midyear 2026 (as of July 1, 2026) |
| Median gross rent | $1,117 a month (2024) | US Census Bureau, ACS 2024 1-year estimates, table B25064 Median Gross Rent |
New Mexico's minimum wage is $12.00 an hour.
New Mexico has graduated rates from 1.5 % to 5.9 %; the top rate applies to single filers above $210,000.
The state gross receipts tax is 4.875 %; local taxes add an average of 2.80 %, for a combined 7.68 %.
What income does rent in New Mexico take?
A common rule of thumb is to keep rent at or below 30 % of gross income. At the median rent of $1,117 a month, that means a household income of about $44,700 a year before tax.
Good to know
- New Mexico's sales tax is a gross receipts tax with a broad base that also covers many services.
Sources
- US Department of Labor, State Minimum Wage Laws (updated July 1, 2026) (2026-07-01)
- Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (2026-02-19)
- Tax Foundation, State and Local Sales Tax Rates, Midyear 2026 (as of July 1, 2026) (2026-07-06)
- US Census Bureau, ACS 2024 1-year estimates, table B25064 Median Gross Rent (2025-09)