CashoutTipped minimum wage / New Mexico
New Mexico tipped minimum wage
What employers must pay
In New Mexico, the minimum wage is $12.00 an hour. An employer can pay a tipped employee as little as $3.00 an hour in cash, as long as tips bring the total to at least $12.00. The difference, $9.00, is the tip credit.
Albuquerque, Las Cruces, Santa Fe city and Santa Fe County have their own rates (see the table below). Bernalillo County's own rate is below the state rate, so the state rate applies there.
Who counts as a tipped employee: more than $30 a month in tips.
If your cash wage plus tips comes up short of $12.00 an hour in a workweek, your employer has to make up the difference.
What changes next
No change to the New Mexico minimum wage is scheduled. Albuquerque, Las Cruces and Santa Fe city raise their own rates on January 1, 2027.
Local and regional rates
Some places in New Mexico have their own minimum wage or a regional rate. If you work there, the rate listed here applies.
| Place | Minimum | Cash wage | Since |
|---|---|---|---|
| AlbuquerqueAlbuquerque's minimum matches the state's in 2026, but its tipped cash wage is higher at $7.20. On January 1, 2027 the city rate goes to $13.00 ($12.00 for employers that pay at least $2,500 a year toward health or child care), and the tipped wage stays $7.20. | $12.00 | $7.20 | January 1, 2026 |
| Las CrucesRises to $13.47, tipped $5.39, on January 1, 2027. | $13.01 | $5.20 | January 1, 2026 |
| Santa Fe (city)Tip credit only for workers who get $100 or more a month in tips. Rises to $17.50 on January 1, 2027. | $15.40 | $3.00 | March 1, 2026 |
| Santa Fe County (unincorporated)Applies outside the cities of Santa Fe, Espanola and Edgewood; adjusted each March 1. | $15.40 | $4.62 | March 1, 2026 |
Tip pooling and service charges
Tips belong to the employee who receives them, but state law allows tips to be pooled among wait staff. Federal rules apply beyond that, so managers and supervisors may not share in tips.
Overtime
Time and a half after 40 hours in a week. Tipped overtime is figured on the full minimum wage, not the $3.00 cash wage.
Taxes on your tips
New Mexico taxes wage income, and tips are wages, so its income tax applies to your tips. Federal income tax, Social Security and Medicare still apply. The federal tip deduction can cut the income tax part: see how the No Tax on Tips deduction works.
Check a week's pay
Enter one workweek to see whether your cash wage plus tips reached the minimum wage where you work.
You reached the minimum this week.
You came up short. Your employer owes you at least
If you are underpaid
Start by comparing your pay stubs with your own record of hours and tips. If the numbers don't add up, you can file a complaint with the New Mexico Department of Workforce Solutions, Labor Relations Division: how to file. You can also call the U.S. Department of Labor, Wage and Hour Division, at 1-866-487-9243.
