New Mexico · rules verified
New Mexico Overtime Calculator
New Mexico requires overtime after 40 hours a week, and its statewide minimum wage has held at $12.00 since 2023. Overtime is taxable on the New Mexico return.
New Mexico workweek
Bonus, shift pay & state options
$1,248.50
50 h worked · 10 h at 1.5×
| Straight-time pay (all hours + bonus) | $1,135.00 |
|---|---|
| Overtime premium at 1.5× | $113.50 |
| Double-time premium at 2× | $0.00 |
| Total for the week | $1,248.50 |
Your no-tax-on-overtime deduction
New Mexico (2026): taxes all overtime — no state deduction.
Minimum wage history
The state rate sat at $7.50 for years, then climbed to $9.00 in 2020, $11.50 in 2022 and $12.00 in 2023. Unlike neighbors Colorado and Arizona, New Mexico does not reset it for inflation in the U.S. DOL table, so $12.00 stands until the Legislature acts.
Paper or online wage claims
The Department of Workforce Solutions’ Labor Relations Division accepts wage claims on English and Spanish forms and asks that the whole form be completed as thoroughly as possible.
Personal income tax
New Mexico begins with federal adjusted gross income. Its 2025 PIT-ADJ schedule of additions, deductions and exemptions has no line for overtime, so the federal deduction does not lower New Mexico tax.
Example week
At New Mexico’s $22.70 median wage, a 50-hour week pays as shown.
| Day | Hours | Regular | 1.5× | 2× |
|---|---|---|---|---|
| Mon | 10 | 10 | 0 | 0 |
| Tue | 10 | 10 | 0 | 0 |
| Wed | 10 | 10 | 0 | 0 |
| Thu | 10 | 10 | 0 | 0 |
| Fri | 10 | 0 | 10 | 0 |
Minimum wage path
| 2016 | 2018 | 2020 | 2022 | 2024 | Now | Next |
|---|---|---|---|---|---|---|
| 7.50 | 7.50 | 9.00 | 11.50 | 12.00 | 12.00 | — |