How New Mexico compares
Ranked against the other 49 states on the figures we hold. Rates that combine state and local components — sales tax, the minimum wage where it varies by region — are shown on this page but not ranked, because a single number would misstate them.
| Figure | NM | Nationally | In its region |
|---|---|---|---|
| PopulationUS Census Bureau, Vintage 2025 estimates, July 1, 2025 | 2,125,498 | 36th highest of 50 | 4 of 4 |
| GDP ($bn)Bureau of Economic Analysis, 2025 | 152.8 | 37th highest of 50 | 4 of 4 |
| Median household incomeUS Census Bureau, ACS 2024 1-year, 2024 | $67,816 | 43rd highest of 50 | 3 of 4 |
| Unemployment rateBureau of Labor Statistics, LAUS (seasonally adjusted, preliminary), September 2026 | 4.7% | tied 42nd lowest of 50 | 3 of 4 |
| Foreign-born shareUS Census Bureau, ACS 2024 1-year, 2024 | 10.0% | tied 19th highest of 50 | 3 of 4 |
| Property tax ratechecked Nov 2026; confirm with the New Mexico legislature | 0.80% | tied 20th lowest of 50 | 2 of 4 |
| Deposit return window (days)checked Nov 2026; confirm with the New Mexico legislature | 30 | tied 15th lowest of 50 | 2 of 4 |
| Eviction notice (days)checked Nov 2026; confirm with the New Mexico legislature | 3 | tied 31st highest of 50 | 3 of 4 |
| Final pay deadline (days)checked Nov 2026; confirm with the New Mexico legislature | 0 | tied 1st lowest of the 29 states that set one | 1 of 4 |
- State income tax: yes41 of 50 states answer the same way
- At-will employment: yesthe same in all 50 states — it does not set New Mexico apart
- Paid sick leave required: yes20 of 50 states answer the same way
- Paid family leave: no38 of 50 states answer the same way
- Workers' comp required: yes49 of 50 states answer the same way
- Rent control permitted: no46 of 50 states answer the same way
- Annual report required: no7 of 50 states answer the same way
Statistical figures: US Census Bureau, Vintage 2025 estimates (July 1, 2025) · US Census Bureau, ACS 2024 1-year (2024) · Bureau of Economic Analysis (2025) · Bureau of Labor Statistics, LAUS (seasonally adjusted, preliminary) (September 2026) · SBA Office of Advocacy, 2025 Small Business Profiles (2025). Tax, wage, business and tenancy figures are recorded from state sources and were last checked on 2026-11-05 — confirm anything you are about to act on with the New Mexico legislature.
How long you have in New Mexico
The periods that decide whether something is on time. Days are calendar days unless the underlying rule says otherwise.
- Return a security deposit within
- 30 days
- Eviction notice before filing
- 3 days
- Final paycheck within
- 0 days
- LLC formation processed in
- 3–5 days
- Overtime starts after
- 40 hrs/week (FLSA)
AI Legal Insights — New Mexico
AI-generated · Updated July 2026
New Mexico operates under an at-will employment doctrine, meaning employment can generally be terminated by either party at any time. Employers must also comply with the Healthy Workplaces Act, which mandates paid sick leave accrual of one hour for every 30 hours worked.
The state offers a relatively low LLC formation fee of $50, supporting a landscape of approximately 166,000 small businesses. While the Gross Receipts Tax can vary by locality, the base state sales tax remains at 5%.
The foreign-born population accounts for 9.6% of the state's residents. This demographic contributes to the cultural and economic diversity of the Land of Enchantment.
- ›Ensure compliance with the state's specific Gross Receipts Tax requirements in all service agreements.
- ›Include clear provisions regarding the mandatory paid sick leave requirements under the Healthy Workplaces Act.
- ›Verify local jurisdictional clauses, as tax rates and regulations can vary significantly between municipalities.
AI-generated insights · Verify with a licensed attorney before relying on this information.
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Employment Laws
New Mexico labor regulations
New Mexico is an at-will employment state. The statewide minimum wage has been $12.00/hr since January 1, 2023, and some localities (such as the City and County of Santa Fe) set higher local minimums. The Healthy Workplaces Act requires all private employers to provide paid sick leave at 1 hour per 30 hours worked. New Mexico does not have a state paid family leave program.
| Law | NM Rule | Federal Floor |
|---|---|---|
| Minimum Wage | $12.00/hr since January 1, 2023; some cities and counties set higher local rates — the highest applicable rate applies | $7.25/hr |
| Overtime | After 40 hrs/week at 1.5× the regular rate | FLSA: after 40 hrs/week |
| Paid Sick Leave | 1 hr per 30 hrs worked; up to 64 hrs/year (Healthy Workplaces Act, since July 1, 2022); applies to all private employers | None (federal) |
| Paid Family Leave | No state program | FMLA: 12 weeks unpaid |
| Workers Comp | Required for employers with 3 or more employees (all construction employers) | No general federal mandate |
| At-Will Employment | Yes, with statutory and public policy exceptions | Default nationwide |
| Final Paycheck | Discharged employees: within 5 days; employees who quit: by the next regular payday | No federal requirement |
| Meal Breaks | No state meal or rest break requirement for adult employees | No federal requirement |
- The Healthy Workplaces Act applies to all private employers regardless of size — employees accrue 1 hour of paid sick leave per 30 hours worked, up to 64 hours per year.
- The New Mexico Human Rights Act prohibits employment discrimination based on protected characteristics including race, religion, national origin, sex, sexual orientation, gender identity, age, and disability.
- Santa Fe and some other localities set minimum wages above the state rate — employers must pay whichever rate is highest.
- New Mexico's Gross Receipts Tax (GRT) is imposed on the seller rather than the buyer and applies to most services as well as goods.
- Workers' compensation is required for employers with 3 or more employees, counting part-time workers; construction employers must carry coverage regardless of size.
Sources: U.S. Department of Labor state minimum wage table · state labor agencies (checked Nov 2026)
Landlord-Tenant Laws
New Mexico rental regulations
New Mexico landlord-tenant law is governed by the Uniform Owner-Resident Relations Act. For leases of less than one year, the security deposit is capped at one month's rent, and deposits must be returned with an itemized statement within 30 days. Non-payment of rent requires a 3-day notice before the landlord can file for eviction. State law prohibits local rent control.
| Topic | NM Rule |
|---|---|
| Security Deposit | Leases under 1 year: capped at 1 month's rent. Leases of 1 year or more: a deposit above 1 month's rent requires the landlord to pay interest on it |
| Deposit Return | Within 30 days after the tenancy ends, with an itemized list of deductions; a landlord who misses the deadline loses the right to withhold any of it |
| Rent Control | None; state law prohibits cities and counties from enacting rent control on private residential property |
| Eviction Notice (Non-Payment) | 3-day written notice to pay or quit |
| Eviction Notice (Lease Violation) | 7-day written notice to cure the violation; a repeat violation within 6 months allows termination without another chance to cure |
| Eviction Process | Landlord files in magistrate or metropolitan court after the notice period; the tenant has a right to a hearing; only a court-issued writ can remove the tenant |
| Habitability | Landlord must keep the premises safe and habitable; after written notice of a serious defect and failure to repair, the tenant may be entitled to rent abatement |
| Retaliation Protection | Landlord may not raise rent, reduce services, or evict in retaliation for a good-faith complaint about code or habitability violations |
| Late Fee | Must be stated in the lease and may not exceed 10% of the rent for each rental period |
| Self-Help Eviction | Prohibited — landlords may not lock out tenants, remove belongings, or shut off utilities to force a move-out |
Both landlords and tenants have enforceable rights under New Mexico law. Document all communications and keep copies of your lease agreement. Use AI review to spot risky clauses before signing.
Starting a Business
New Mexico LLC formation guide
New Mexico has low LLC costs: a $50 filing fee and no annual report requirement for LLCs. Instead of a traditional sales tax, the state levies a Gross Receipts Tax (GRT) on businesses — the state rate is 4.875%, and the average combined rate with local add-ons is about 7.67%. The corporate income tax rate is 5.9%. The state offers incentives for film production, high-wage jobs, and manufacturing.
Step-by-step LLC formation
- 1Choose a business name — must include "LLC", "L.L.C.", or "Limited Liability Company"; check availability with the NM Secretary of State
- 2File Articles of Organization with the NM Secretary of State online or by mail
- 3Pay the $50 filing fee
- 4Designate a registered agent with a physical New Mexico address
- 5Get an EIN from the IRS — free at irs.gov; required for banking, hiring, and tax registration
- 6Register for the Gross Receipts Tax (GRT) and employer withholding with the NM Taxation and Revenue Department
- 7Note that New Mexico LLCs do not file an annual report with the Secretary of State — but keep your registered agent information current
- 8Open a business bank account using your EIN and filed formation documents
- 9Research available state incentives: NM offers tax credits for film production, high-wage jobs, and manufacturing investment
Every LLC also needs a free EIN from the IRS (Form SS-4). Apply online at irs.gov — takes about 15 minutes and is required to open a business bank account.
Popular IRS Forms
Most-filed federal forms for New Mexico taxpayers
Fill these out online with plain-English guidance — every field explained, no accountant required. Download as a ready-to-file PDF when done.
The main annual federal income tax return every taxpayer files.
Fill out free →Give your SSN or EIN to a client before getting paid as a contractor.
Fill out free →Report $600+ paid to independent contractors during the year.
Fill out free →Tell your employer how much federal tax to withhold from pay.
Fill out free →Report income and expenses from a sole proprietorship or LLC.
Fill out free →Report payroll taxes withheld from employees each quarter.
Fill out free →Get an automatic 6-month extension to file your 1040.
Fill out free →The year-end wage statement employers issue to each employee.
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Federal Offices
United States government offices in New Mexico
Walk-in assistance by appointment only. Call (844) 545-5640 to schedule, or book online at irs.gov.
Immigration appointments via my.uscis.gov or call (800) 375-5283.
Free Legal Aid
New Mexico legal assistance organizations
These organizations provide free or reduced-cost civil legal services to qualifying New Mexico residents.
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