New Mexico payroll deduction

New Mexico workers' compensation fee

What this line takes out of your pay in 2026, what it is calculated on, and where the rate comes from.

What New Mexico workers' compensation fee costs at different salaries

New Mexico workers' compensation fee is a flat $9 a year in New Mexico, charged as a fixed amount rather than a percentage, so it does not scale with pay at all. The figure is set in statute, so it is the amount actually withheld rather than an approximation.

This assessment applies to all wages with no ceiling, so the amount rises in step with pay and the share of gross stays flat.

New Mexico workers' compensation fee by salary
SalaryPer yearPer biweekly chequeShare of gross
$40,000$9$00.022%
$60,000$9$00.015%
$85,000$9$00.011%
$150,000$9$00.006%

A single filer paid biweekly in New Mexico, on 2026 rules reviewed through 2026-08-09. The rate traces to New Mexico WCA — Employer Compliance Bureau.

Common questions

Is New Mexico workers' compensation fee taken out of every paycheck?

Yes, while you are being paid wages in New Mexico and, where a ceiling applies, until you reach it for the year. It is withheld by your employer alongside federal tax and FICA rather than being something you pay separately at filing time.

Can my New Mexico employer charge less than this?

Yes. The figure modelled here is the MAXIMUM an employee can be charged. Employers may set a lower employee share, or cover more of the cost themselves, so a real payslip can show less than this and still be correct. It should not show more.