Payroll Services in New Mexico: Costs, Taxes and Best Providers (2026)

Payroll services for a New Mexico business cost $44 to $130 per month for 1 to 10 employees at entry-tier list prices as of November 2026, and every major provider files New Mexico payroll taxes. New Mexico has state income tax and no local payroll taxes, so entry-tier plans from any provider work.

Prices verified November 2026

What New Mexico employers must handle

New Mexico has state income tax withholding and no local payroll taxes. Employers register with NM Taxation and Revenue for withholding and with the state workforce agency for unemployment insurance. All six providers compared here file New Mexico payroll taxes.

New Mexico payroll tax overview
State income tax withholdingYes
Local or special payroll taxesNone statewide
State unemployment insurance (SUTA)Yes — every state; rate assigned to your business annually
Federal (FICA, FUTA, income tax)Yes — handled by every provider listed
Where to registerNM Taxation and Revenue

Minimum wage, SUTA rates and new-hire reporting deadlines change; check NM Taxation and Revenue for current figures. Every provider on this page files New Mexico payroll taxes.

Payroll prices for a New Mexico business

Monthly payroll cost by provider and number of employees, entry tier, list price, verified November 2026
Provider (entry plan)Base / moPer employee1 emp.5 emp.10 emp.25 emp.
ADP — Essential (quote; est.) $79$5 $84*$104*$129*$204*
Paychex — Flex Essentials (higher tiers quoted) $39$5 $44$64$89$164
Gusto — Simple $49$6 $55$79$109$199
OnPay — Payroll Essentials $49$6 $55$79$109$199
QuickBooks Payroll — Workforce Payroll (Core) $50$7 $57$85$120$225
Rippling — Platform (required) (higher tiers quoted) $40$8 $48$80$120$240

* Estimate for quote-only providers based on publicly reported quotes; ADP bills per pay run so a weekly payroll costs more. Prices are list prices before promotions.

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Best payroll providers for New Mexico employers

OnPay

One plan, one price, everything included

Small businesses, farms, nonprofits and restaurants that want the lowest all-in price with no surprise fees, and free white-glove setup.

Gusto

Transparent pricing and the easiest software to use

Teams under 50 who want to run payroll themselves in a few clicks and get benefits, 401(k) and HR tools without a sales call.

Paychex

Full-service payroll with a dedicated specialist

Owners who want a named human to call, businesses considering a PEO later, and anyone bundling payroll with workers' comp or retirement.

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Other states

Frequently asked questions

Does New Mexico have state income tax on wages?

Yes. New Mexico employers withhold state income tax from employee pay and remit it to NM Taxation and Revenue.

What is the cheapest payroll service in New Mexico?

OnPay and Gusto Simple both list at $49 per month plus $6 per person. Paychex Flex Essentials lists at $39 plus $5 but adds filing fees. Any entry-tier plan handles New Mexico.

Do I need to register my business for payroll in New Mexico?

Yes. Register with NM Taxation and Revenue and with the state unemployment agency before your first payroll. Your provider can file on your behalf but usually needs the account numbers from you.

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