All states · Updated for 2026
How to pay a nanny in New Mexico
Everything a New Mexico family has to do to pay a nanny, housekeeper or caregiver legally: the taxes, the registrations, the forms, and the deadlines. CareTab does the math and reminds you; you keep paying them the way you already do.
The short version
- Federal: withhold 7.65% Social Security and Medicare from their pay and match it; pay FUTA (0.6% of the first $7,000.00); file Schedule H with your 1040; give them a W-2 by Jan 31.
- New Mexico unemployment tax: register with New Mexico Department of Workforce Solutions (DWS), Unemployment Insurance Tax after household (domestic) employers: $1,000 or more in cash wages in a calendar quarter (federal household-employer standard; not re-verified against a dws publication in this pass); your rate comes on a notice on the first $34,800.00 of wages; file ES-903A Employer's Quarterly Wage and Contribution Report (UI Tax & Claims System) quarterly.
- New Mexico income tax: withholding is voluntary for household employers (form Federal W-4 (write 'For New Mexico State Withholding Only')).
- New hire report: within 20 days of their start date.
- Minimum wage: $12.00/hour. Overtime: 1.5× over 40 h/week for live-out nannies.
- Paid sick leave: required (Healthy Workplaces Act (eff. July 1, 2022) requires paid sick leave from all private employers regardless of size, including household employers; accrual rate and the annual usage cap were not retrievable from the DWS site in this pass — confirm at dws.state.nm.us before relying on an accrual figure.).
- Workers' compensation: Not verified in this pass. New Mexico's Workers' Compensation Act has historically excluded private domestic servants and employers with fewer than three employees — confirm with the NM Workers' Compensation Administration.
Step by step
- Get an EIN from the IRS (free, online, 10 minutes).
- Have your nanny complete Form I-9 and, if they want federal income tax withheld, a W-4 and Federal W-4 (write 'For New Mexico State Withholding Only').
- File the New Mexico new-hire report within 20 days at the state site.
- Register with New Mexico Department of Workforce Solutions (DWS), Unemployment Insurance Tax once you cross household (domestic) employers: $1,000 or more in cash wages in a calendar quarter (federal household-employer standard; not re-verified against a dws publication in this pass) (registration).
- Each payday: track hours, pay at least minimum wage and overtime, withhold 7.65%, give a pay stub.
- Each quarter: file ES-903A Employer's Quarterly Wage and Contribution Report (UI Tax & Claims System). Last day of the month after each quarter. 2026 taxable wage base $34,800 (up from $33,200) per secondary summaries of the DWS release (DWS site blocked automated retrieval); new-employer rate is assigned by industry (greater of the industry average or 1.00%, roughly 1.00%–1.28%) — enter it from your DWS rate notice. New for 2026 (HB 218): employers must also e-file the quarterly TRD-41431 wage and withholding report with Taxation & Revenue by the 25th of the month after the quarter.
- January: W-2 to your nanny, W-2/W-3 to the SSA, RPD-41072 Annual Summary of Withholding Tax (optional per FYI-104); W-2s must be e-filed via TAP to the state. April: Schedule H with your 1040.
Run your numbers
Use the free New Mexico nanny tax calculator: take-home pay, what you withhold, and your total cost including employer taxes.
Frequently asked
Do I have to pay nanny taxes in New Mexico?
Yes. Once you pay a household employee $3,000.00 or more in a year you owe Social Security and Medicare (7.65% withheld from your nanny and 7.65% from you), and FUTA once you pay $1,000.00 in any quarter. New Mexico unemployment tax applies after household (domestic) employers: $1,000 or more in cash wages in a calendar quarter (federal household-employer standard; not re-verified against a dws publication in this pass).
Do I withhold New Mexico income tax from my nanny?
New Mexico does not require household employers to withhold state income tax; you can withhold voluntarily using Federal W-4 (write 'For New Mexico State Withholding Only') if your nanny asks.
What forms do I file in New Mexico?
ES-903A Employer's Quarterly Wage and Contribution Report (UI Tax & Claims System) quarterly with New Mexico Department of Workforce Solutions (DWS), Unemployment Insurance Tax, RPD-41072 Annual Summary of Withholding Tax (optional per FYI-104); W-2s must be e-filed via TAP annually, a W-2 for your nanny and W-3 to the SSA by Jan 31, and Schedule H with your federal return.
Does my nanny get overtime in New Mexico?
Live-out nannies get 1.5× over 40 hours a week. Live-in nannies are exempt from overtime in New Mexico. New Mexico Minimum Wage Act: overtime after 40 hours/week; live-in domestic workers are exempt from overtime under FLSA. State minimum wage $12.00 (unchanged since 2023; not re-verified against DWS in this pass). Santa Fe (city and county), Albuquerque and Las Cruces set higher local minimums (not encoded).
What is the minimum wage for a nanny in New Mexico?
$12.00 per hour in 2026.
Pay your New Mexico nanny legally for $14.99/month
Hours, paychecks with every tax computed, pay stubs, PTO, and a filing calendar with ES-903A Employer's Quarterly Wage and Contribution Report (UI Tax & Claims System) pre-filled. 14-day free trial, no card needed.
Start free trialSources: FYI-104 (Rev. 11/2025) — New Mexico Withholding Tax, Effective January 1, 2026 (percentage-method tables); NM Taxation and Revenue Department — Forms & Publications (FYI-104 landing); Bloomberg Tax — New Mexico Releases 2026 Unemployment Insurance Information (DWS; experienced rates 0.33%–5.4%). Rules for 2026 are provisional. General information, not tax or legal advice.