NM · State Guide · Tax year 2026

New Mexico nanny tax guide

Everything you need to pay a nanny, caregiver, or household employee legally in New Mexico— the rates CareTax uses to calculate your pay runs, the forms you'll file, and the state portals you'll file them through.

SUI (new employer)

1%

On first $34,800

SDI

None

PFML

None

State income tax

Progressive

Bracketed

Minimum wage

$12/hr

Workers' comp

Not required

Quick Facts

ItemValueNotes
Minimum Wage$12.00/hr$12/hr statewide; Santa Fe $15; Las Cruces $13.01
Pay FrequencyEvery 16 days
Overtime Rules1.5x after 40 hrs/week; live-in exempt
Record Retention4 years

Unemployment Insurance

Registration: Register online

Paid Sick Leave

Accrual Rate: 1hr/30hrs worked

Annual Cap: 64 hrs

Yes -- 1hr/30hrs; up to 64 hrs/year; 64 hrs carryover

New Hire Reporting

Deadline: Within 20 days of hire

Report Online: File report

Special Requirements

Sick leave for domestic abuse/assault/stalking-related absences; wage reduction notice required; if workers' comp obtained voluntarily, must register for WC Administrative Fee

Key Deadlines

DeadlineDateDescriptionFrequency
New Hire ReportingWithin 20 days of hireReport new employees within 20 days to the stateat-event

State Agencies

Sources

Frequently asked

Do I owe nanny tax in New Mexico?
If you pay a household employee $3,000 or more in 2026, you owe federal FICA (Social Security and Medicare). If you pay $1,000 or more in any calendar quarter, you owe FUTA. New Mexico state unemployment kicks in once you exceed the state's wage threshold — typically the first $34,800 of wages.
What is the New Mexico SUI rate for a new household employer?
New household employers in New Mexico start at 1%, applied to the first $34,800 of each employee's wages per year. Your rate can change once the state assigns you an experience rating, usually after 2–3 years.
How much state income tax do I withhold for a New Mexico nanny?
New Mexico uses progressive tax brackets. Your employee's state income tax withholding depends on their expected annual wages and filing status per their state withholding certificate. CareTax's calculator handles bracketed withholding automatically for every pay run.
What forms do I need to file for a household employee in New Mexico?
Federally: Schedule H (filed with your personal Form 1040), W-2 and W-3 (given to your employee and filed with the SSA), and quarterly EFTPS deposits if your liability exceeds $1,000/year. In New Mexico: new-hire reporting, quarterly SUI filings, and any required state income tax withholding returns. CareTax generates all federal reference documents and points you to the New Mexico state portals.