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Reference · State of New Mexico

New Mexico trade labor costs

What a plumbing, HVAC or electrical tech earns in New Mexico, what the state adds to payroll, whether labor is taxed, what a license costs, how lien rights work and when the heating and cooling seasons peak — each figure from the agency that sets it, with the date we read it.

  • Wages BLS OEWS May 2025
  • Payroll and licenses state agencies
  • Checked and
Plumbing median
$29.54/h−3.7% vs the U.S.36th of 51
HVAC median
$24.17/h−17.6% vs the U.S.47th of 51
Electrical median
$28.07/h−7.6% vs the U.S.46th of 51
New-employer SUTA
Industry avg.on the first $34,800
Payroll programs
Noneno paid-leave or disability program found
Sales tax on labor
Taxedrepair and installation on buildings

Pay in New Mexico

Hourly pay across all industries, May 2025. Half of the workers in each trade earn less than the median and half earn more; one in ten earns less than the 10th percentile. Union and non-union, no self-employed.

Hourly pay, 10th to 90th percentileDrawn to scale: one dollar axis for all three trades

  • PlumbingU.S. median $30.67

    plumbers: 10th percentile $17.39, 25th $21.72, median $29.54, 75th $37.60, 90th $42.16 an hour; U.S. median $30.67.

  • HVACU.S. median $29.33

    HVAC techs: 10th percentile $17.97, 25th $21.71, median $24.17, 75th $30.24, 90th $36.43 an hour; U.S. median $29.33.

  • ElectricalU.S. median $30.38

    electricians: 10th percentile $17.62, 25th $22.46, median $28.07, 75th $35.28, 90th $41.74 an hour; U.S. median $30.38.

  • 25th–75th percentile
  • State median
  • U.S. median
Hourly pay by percentile for plumbers, HVAC techs and electricians in New Mexico, BLS OEWS May 2025
PercentilePlumbingHVACElectrical
10th$17.39$17.97$17.62
25th$21.72$21.71$22.46
Median$29.54$24.17$28.07
75th$37.60$30.24$35.28
90th$42.16$36.43$41.74
Mean$29.71$26.60$28.66
U.S. median$30.67$29.33$30.38
vs U.S.−3.7%−17.6%−7.6%
Rank36th47th46th
Jobs2,8301,9505,020

Dollars an hour. BLS occupations: Plumbers, pipefitters and steamfitters (SOC 47-2152); Heating, air conditioning and refrigeration mechanics and installers (SOC 49-9021); Electricians (SOC 47-2111). “vs U.S.” compares the medians; rank 1 is the highest median of the 50 states and DC. Released May 15, 2026; the next survey is due each spring.

Payroll costs the state adds

What New Mexico charges an employer on top of wages: unemployment tax, and any paid-leave or disability program funded through payroll, and who must carry workers’ comp. Federal Social Security, Medicare and unemployment tax apply in every state and are already in the calculator. Workers’ comp premiums depend on the class code and the insurer, so the card gives the rules, not a rate.

State unemployment tax (SUTA)

New Mexico Department of Workforce Solutions (NMDWS), Unemployment Insurance Tax

Wage base
$34,800 per employee a year
New-employer rate
Industry averageEach new employer pays the average rate of its industry; there is no single number.
Construction
1.21%for new construction employers

No single new-employer rate: each new employer pays the average rate for its industry. New Mexico Department of Workforce Solutions 2026 new-employer industry rates (greater of the industry average or 1%): 23 Construction 1.21%.

Per tech, a year 1.21% × $34,800 = $421At the construction rate, for a plumber paid the state median ($29.54 × 2,080 h = $61,443). The calculator uses the rate alone.

State pages read

Workers’ compensation

New Mexico Workers' Compensation Administration, Employer Compliance Bureau

Who must carry it
1 employee in construction · 3 employees otherwiseThe Workers’ Compensation Act applies to employers of three or more workers, but any employer doing work that requires a license under the Construction Industries Licensing Act must carry coverage regardless of the number of employees (NMSA 1978, § 52-1-6(A)). Executive employees who have opted out still count toward the three-worker threshold (§ 52-1-7(E)). nmonesource.com · workerscomp.nm.gov
Where to buy it
Private insurersEvery covered employer must have its insurance carrier file a certificate of coverage with the Workers’ Compensation Administration, and the certificate must come from an authorized insurer; an employer the director finds financially solvent may instead get a certificate to self-insure (NMSA 1978, § 52-1-4). nmonesource.com
Owners
A sole proprietor, or an executive employee of a corporation or LLC, may opt out of the Act by filing an election with the WCA director, and can revoke it later by filing with the insurer and the director (effective 30 days after filing) (NMSA 1978, § 52-1-7). A partner or self-employed person may opt in by filing a sworn acceptance or an insurance undertaking with the director (§ 52-1-6(B)). nmonesource.com
Construction
Besides the one-employee rule for CID-licensed work, an employer that has part of its own trade or business done by a contractor who is not an independent contractor must pay all compensation as if the work were done without the contractor (NMSA 1978, § 52-1-22). nmonesource.com

Statute and agency pages read

Paid leave and disability insurance

We found no state paid family and medical leave or temporary disability insurance program funded through payroll in New Mexico on October 28, 2026. State paid sick leave rules, where they exist, are not covered here.

New-employer rates usually last one to three years — longer in some states (four years in Indiana, four to five in D.C.); then the state assigns your own rate, and your rate notice wins over any figure here. The calculator below uses the construction rate where one is clear. Where a state’s own pages could not be read, the card says so and gives the U.S. Labor Department’s figure.

What a shop in New Mexico needs to charge

The calculator’s example shop — three techs, $120,000 of overhead, a truck each, 10% net profit — with New Mexico’s median wage for each trade and its unemployment tax filled in. Your own numbers will differ; change them in the calculator below.

Example shopBreak-evenRate, 10% profit
Plumbingwage $29.54$110.40$122.67→ $125
HVACwage $24.17$98.87$109.86→ $110
Electricalwage $28.07$107.25$119.16→ $120

Per billable hour; → is the rate rounded up, as the calculator rounds it. Everything except the wage and the unemployment tax is the national example (BLS, IRS and DOL figures listed on the labor rate calculator).

Change the numbers for your shop

The labor rate calculator, opened on New Mexico: pick your trade, put in your own crew, pay and overhead, and the rate and break-even redraw as you type.

Your labor rate

Who does the billable work?

Example shop in New Mexico: 3 techs at the state’s median plumber wage, $120,000 overhead. Change any number or pick another state.

Charge at least Example shop · New Mexico

Charge at least $122.67 per billable hour; break-even $110.40.

Round up to $125 (+$2.33)

See it drawn to scale
Rate build-upDrawn to scale: every dollar the same height
Rate build-up for the example, drawn to scaleColumn from $0 to $122.67 per billable hour, drawn to scale: wage $50.50, taxes & benefits $13.29, overhead $32.87, truck $13.74, profit 10% $12.27. Break-even line at $110.40. Rounded up to $125.12345$0Labor$63.79Break-even$110.40Your rate$122.67Round up to$125
  1. Wage$61,443.20 ÷ 1,216.8 h$50.50
  2. Taxes & benefits26.32% of pay$13.29
  3. Overhead$120,000 ÷ 3,650.4 h$32.87
  4. Truck$16,719.14 ÷ 1,216.8 h$13.74
  5. Profit 10%of the price$12.27
Break-even
$110.40
Profit per hour
$12.27
Revenue a year
$447,788

$110.40 ÷ (1 − 10%) = $122.67rounded up to $125

Already showing the example.

Price your tasks at $125 an hourOpens the price book builder with this rate.

Billable hours
1,216.8per tech a year
Loaded wage
$37.32per paid hour
Labor
$63.79per billable hour
Overhead
$32.87per billable hour
Truck
$13.74per billable hour
Labor burden
26.32%over gross pay

What moves your rate

  • Every billable hour sold under $110.40 loses money.
  • At 70% billable instead of 65%, break-even drops to $102.52, $7.89 an hour less.
  • Cut $10,000 of overhead a year and break-even drops $2.74 an hour, to $107.66.
Show the math
  1. Worked hours2,080 h − 26 days × 8 h = 1,872 h
  2. Billable hours per tech1,872 h × 65% = 1,216.8 h
  3. Gross pay per tech$29.54 × 2,080 h = $61,443.20
  4. Employer taxes and comp$3,809.48 SS + $890.93 Medicare + $42.00 FUTA + $421.08 SUTA + $1,640.53 comp = $6,804.02
  5. Benefits$61,443.20 × 15.25% = $9,370.09
  6. Labor per billable hour$77,617.31 ÷ 1,216.8 h = $63.79
  7. Overhead per billable hour$120,000 ÷ (3 × 1,216.8 h) = $32.87
  8. Truck per billable hour$16,719.14 ÷ 1,216.8 h = $13.74
  9. Break-even$63.79 + $32.87 + $13.74 = $110.40
  10. Rate at 10% profit$110.40 ÷ (1 − 10%) = $122.67

Change the numbers

State and trade
Trade

Fills the wage and state unemployment tax (SUTA). Workers’ comp and everything else stay as they are.

Filled for New Mexico3 figures
Wage Plumbing
$29.54/hr
New Mexico median for plumbers · BLS OEWS May 2025
SUTA rate Construction
1.21%
Construction rate; no general new-employer rate · NM DWS, 2026
SUTA wage base Per tech
$34,800
New Mexico · DOL Significant Provisions, July 2026

Your own rate notice wins. These are new-employer rates: after one to three years the state sets your own, and construction employers often pay a different rate.

New Mexico: pay, payroll taxes and licensesSee all 50 states and DC
New Mexico: the fine print

No single new-employer rate: each new employer pays the average rate for its industry. New Mexico Department of Workforce Solutions 2026 new-employer industry rates (greater of the industry average or 1%): 23 Construction 1.21%.

Crew and pay

People who bill hours. Office staff go in overhead.

Average base pay. Filled: New Mexico median for plumbers, BLS OEWS May 2025.

Hours and time off2,080 h · 26 days off

40 hours × 52 weeks = 2,080.

Holidays, vacation and sick days, 8 h each. Example: 8 + 11 + 7 (BLS).

Optional. Paid at 1.5 × the wage. Leave 0 if none.

Billable time

Share of worked hours that ends up on invoices. Published figures run from 30% to 65%.

Billable hours1,216.8 hper tech · 3,650.4 h for the shop
Payroll taxes and benefits+26.32% of pay

Filled: New Mexico construction rate, NM DWS, 2026. Your notice wins.

Pay per tech the rate applies to. Filled: New Mexico, DOL Significant Provisions, July 2026.

Use the rate on your policy. Example: BLS construction average.

Health, retirement and other benefits. Example: BLS construction average.

Loaded wage$37.32per paid hour · burden 26.32%

Included automatically (IRS, tax year 2026): Social Security 6.2% of pay up to $184,500, Medicare 1.45%, federal unemployment (FUTA) 0.6% of the first $7,000.

Shop costs

An example figure. Everything except field pay and trucks — split it in the worksheet below.

Payments, fuel, insurance and upkeep. Enter 0 if trucks are already in overhead.

Profit

Profit as a share of the price, not a markup on cost.

Your rate: $122.67 per billable hour · break-even $110.40. Back to the result

Sales tax on your work

What New Mexico’s tax agency says about repair and installation labor on buildings and the parts and fixtures that go into them. This is what the agency’s pages say, not tax advice.

Labor
TaxedGross receipts tax (GRT) applies to receipts from performing services, construction and the materials built into it included. It’s imposed on the business, which commonly passes it on.The state’s rule leaves maintenance work and the repair of equipment or appliances out of its definition of construction, but GRT is due on services unless an exemption or deduction applies.
Materials
Customer, in the price or on the billOn construction projects the contractor can buy materials without GRT using a Type 6 nontaxable transaction certificate; GRT then applies to the full charge, materials included.
Also
If GRT is passed on, the invoice must state it separately or say that GRT is included in the amount billed.

Read October 24, 2026 on the agency pages listed under Sources. All 50 states and DC side by side.

Licenses and state fees

The license a shop needs from the state to contract for each trade, the board that issues it and the fees on its own schedule. Cities and counties can add their own licenses, registrations and permit fees; exam vendors and fingerprinting may charge more.

Plumbing, HVAC and Electrical

State license

New Mexico Regulation and Licensing Department, Construction Industries Division (CID)

  • Plumbing Contractor license with MM-1 Plumbing classification (or MM-98 Mechanical), held through a CID-certified qualifying party
  • HVAC Contractor license with MM-3 Heating, Ventilation & Air Conditioning (HVAC) classification (or MM-98 Mechanical)
  • Electrical Contractor license with EE-98 Residential and Commercial Electrical classification, held through a CID-certified qualifying party

Any person engaged in contracting in New Mexico must be validly licensed under the Construction Industries Licensing Act; licenses go to business entities that employ or are owned by a CID-certified qualifying party (14.6.3.8 NMAC).

FeeAmount
All three
Contractor license application fee (non-refundable)one-time$30
Plumbing · Contractor license with MM-1 Plumbing classification (or MM-98 Mechanical), held through a CID-certified qualifying party
Basic license fee, classifications other than GA-98/GB-2/GB-98/GF-98/EE-98/MM-98 (initial or renewal)per year ($100 for two years)$50
Basic license fee for MM-98 Mechanical (initial or renewal)per year ($200 for two years)$100
HVAC · Contractor license with MM-3 Heating, Ventilation & Air Conditioning (HVAC) classification (or MM-98 Mechanical)
Basic license fee, classifications other than GA-98/GB-2/GB-98/GF-98/EE-98/MM-98 (initial or renewal)per year ($100 for two years)$50
Electrical · Contractor license with EE-98 Residential and Commercial Electrical classification, held through a CID-certified qualifying party
Basic license fee for EE-98 (initial or renewal)per year ($200 for two years)$100

Fees per 14.5.5.8 NMAC (effective July 1, 2004, as published by the State Records Center). Contractor and qualifying-party exams are given by PSI; CID’s rules cited here do not list the exam fees. Proof of financial responsibility is also required: a surety bond, cash collateral or a financial statement (14.6.3 NMAC).

HVAC Gas-fired warm-air heating is in the separate MM-2 natural gas fitting classification; MM-98 covers MM-1 through MM-4.

Keeping the license

Renewal
Check with the boardThe official pages and rules we read on November 4, 2026 do not settle it.
Continuing ed.
PlumbingJourneyman plumber, pipefitter and gas certificate holders must complete at least 16 hours of approved coursework before each renewal, 8 of them on the current CID code (14.6.4 NMAC); the rule places no continuing education on the contractor license itself. srca.nm.govHVACJourneyman sheet metal and journeyman refrigeration certificate holders must complete at least 16 hours of approved coursework before each renewal, 8 of them on the current CID code (14.6.4 NMAC). srca.nm.govElectricalJourneyman electricians (JE98) must complete at least 16 hours of approved coursework before each renewal, 8 of them on the current CID code (14.6.4 NMAC). srca.nm.gov
Reciprocity
Check with the boardThe official pages and rules we read on November 4, 2026 do not settle it.

Sources read

Beyond the trade license

Contractor registration, bond and insurance the state asks of a trade shop

Registration
In New Mexico the trade license is the Construction Industries Division (CID) contractor license itself (MM-1 plumbing, MM-3 HVAC, MM-98 mechanical or EE-98 electrical classification, qualified by a certified qualifying party), so no separate state contractor registration is added; corporations, LLCs, LPs and LLPs must hold the license even if an owner has one (14.6.3 NMAC). srca.nm.gov
Bond
$10,000Every CID contractor must furnish a $10,000 surety bond at initial licensure and as a condition of each renewal, in effect for the whole license period; claims can be made within two years after final inspection or certificate of occupancy (14.6.3 NMAC, Section 60-13-49 NMSA). srca.nm.gov
Insurance
14.6.3 NMAC requires the $10,000 bond and compliance with workers’ compensation laws (Section 60-13-23 NMSA) to keep a license valid, but no general liability insurance minimum. srca.nm.gov

Board and statute pages read

State or city license?

Check Who licenses the trades in New Mexico

Check with the state Whether cities and counties also license these trades: The official pages and rules we read on November 4, 2026 do not settle it.

State and city pages read

What New Mexico law says about lien rights on private jobs — the notices, the deadline to file and the deadline to sue — and whether a statute sets payment deadlines or caps retainage. Read from the statute itself; it is not legal advice.

Mechanic’s lien

NMSA 1978, §§48-2-1 to 48-2-17Chapter 48 – Liens and Mortgages, Article 2 Mechanics’ and Materialmen’s Liens

You, hired by the owner
No notice to startAn original contractor (one who contracts directly with the owner) gives no pre-lien notice; the 60-day notice in NMSA 48-2-2.1 does not apply to it. After filing, mail, email, certified-mail or hand-deliver a copy of the filed lien to the owner within 15 days, or you may lose interest, attorney fees and costs (NMSA 48-2-6(B), added effective June 16, 2023). nmonesource.com
Subs and suppliers
Notice requiredA second-tier sub or supplier (one that did not contract with the owner or the original contractor) claiming more than $5,000 must give written notice of its right to claim a lien to the owner or the original contractor within 60 days after first furnishing, by certified mail, acknowledged fax or personal delivery; a late notice covers only work from 30 days before it was given (NMSA 48-2-2.1). Not required on residential property of four or fewer units. nmonesource.com
File the lien
120 daysAn original contractor must file the lien claim with the county clerk within 120 days after completing its contract; everyone else has 90 days after completion of the building, improvement, alteration or repair (NMSA 48-2-6(A)). nmonesource.com
Enforce it
2 yearsStart court proceedings or binding arbitration to enforce the lien within two years after the lien was filed (NMSA 48-2-10). nmonesource.com
Homes
On residential property of four or fewer dwelling units, the 60-day notice for second-tier subs and suppliers does not apply (NMSA 48-2-2.1(A)), and the Prompt Payment Act does not cover those contracts (NMSA 57-28-3). nmonesource.com

Statutes read

Payment deadlines and retainage

Private jobs (public contracts have their own rules)

Prompt payment
Statute sets deadlinesUnder the Prompt Payment Act (NMSA 57-28-5), the owner must pay an undisputed pay request within 21 days, and contractors and subs must pay their subs and suppliers within 7 days after being paid; late amounts carry interest of 1.5% per month. It does not apply to residential property of four or fewer units. nmonesource.com
Retainage
Not allowed on covered jobsRetainage is prohibited on covered (non-residential) jobs: owners, contractors and subs may not hold back amounts owed for work performed (NMSA 57-28-5(E), since 2007), and amounts remaining due must be paid 10 days after certification of completion (NMSA 57-28-8). nmonesource.com

Statutes read

Heating and cooling season in New Mexico

Degree days, NOAA’s index of the energy it takes to heat or cool a building: each degree a day’s mean temperature falls below 65 °F is one heating degree day, each degree above is one cooling degree day. Thirty-year normals for Albuquerque airport, month by month.

Heating degree days
3,996
Cooling degree days
1,438
Nights ≤ 32 °F
93
Days ≥ 90 °F
64
Normal heating and cooling degree days (base 65 °F) and freezing nights by month at Albuquerque airport, NOAA 1991–2020 normals
MonthHeatingCoolingNights ≤ 32 °F
Jan856026
Feb645018
Mar48108
Apr25572
May70105–
Jun2336–
Jul0429–
Aug0367–
Sep20179–
Oct220131
Nov579012
Dec870026

Albuquerque airport has two working seasons: 3,996 heating and 1,438 cooling degree days a year, heating peaking in December and cooling in July.

The lightest months for heating and cooling together are May and September (175 and 198 degree days).

Nights at or below 32 °F: about 93 a year, ten or more a month in November through February. Days reaching 90 °F: about 64 a year, the most in July.

Weighted by where New Mexico’s people live, NOAA’s statewide normals (1981–2010) are 4,521 heating and 939 cooling degree days — 32nd for heating and 21st for cooling among the 48 contiguous states (the contiguous U.S.: 4,332 and 1,272).

Station: Albuquerque airport (USW00023050), NOAA NCEI U.S. Climate Normals 1991–2020 — station file; statewide figures: NOAA Climate Prediction Center. Bars share one scale: the longest is 870 degree days. Read .

Sources

Each page opened on the date shown. License, registration, lien and workers’ comp sources are linked beside each fact above. Figures change: the agency’s own page wins over this one.

  1. May 2025 State Occupational Employment and Wage Estimates (state file oesm25st)U.S. Bureau of Labor Statistics · read October 28, 2026
  2. Occupational Employment and Wages — May 2025 (news release USDL-26-0725, May 15, 2026)U.S. Bureau of Labor Statistics · read October 28, 2026
  3. Public Data API (national OEWS series for the three occupations)U.S. Bureau of Labor Statistics · read October 28, 2026
  4. Unemployment insurance tax rates (dws.nm.gov)New Mexico Department of Workforce Solutions (NMDWS), Unemployment Insurance Tax · read October 28, 2026
  5. Unemployment insurance tax rates (dws.nm.gov)New Mexico Department of Workforce Solutions (NMDWS), Unemployment Insurance Tax · read October 28, 2026
  6. Significant Provisions of State Unemployment Insurance Laws, Effective July 2026U.S. Department of Labor, Office of Unemployment Insurance · read October 28, 2026
  7. FYI-105: Gross Receipts & Compensating Taxes: An OverviewNew Mexico Taxation and Revenue Department · 08/11/2025 (July 1, 2025 – June 30, 2026 edition) · read October 24, 2026
  8. Gross Receipts Tax OverviewNew Mexico Taxation and Revenue Department · no date shown · read October 24, 2026
  9. 3.2.1.11 NMAC, ConstructionNew Mexico Taxation and Revenue Department (New Mexico Administrative Code) · October 13, 2021 · read October 24, 2026
  10. NMSA 1978, §§48-2-1 to 48-2-17 — Chapter 48 – Liens and Mortgages, Article 2 Mechanics’ and Materialmen’s LiensOfficial state code · read November 4, 2026
  11. Workers’ compensation coverage requirementsNew Mexico Workers' Compensation Administration, Employer Compliance Bureau · read November 4, 2026
  12. U.S. Climate Normals 1991–2020, Albuquerque airport (USW00023050)NOAA National Centers for Environmental Information · read November 4, 2026
  13. Population-weighted daily heating and cooling degree day normals, 1981–2010 (states and CONUS)NOAA National Weather Service, Climate Prediction Center · read November 4, 2026