Workers Comp Rates in New Mexico (NM)
The average workers' compensation rate in New Mexico is $1.00 per $100 of payroll , effective as of 2025-01-01. This is $0.19 (16.0%) below the national average of $1.19 per $100. New Mexico has a competitive insurance market where employers can purchase workers' comp from private insurers. New Mexico requires workers' compensation for employers with 3 or more employees (1 for construction). The state has competitive rates below the national average.
Workers Comp Requirements in New Mexico
Workers Comp Rates by City in New Mexico
The table below shows average workers' compensation rates for 4 cities in New Mexico, sorted by rate from highest to lowest. Rates range from $0.95/$100 in Santa Fe to $1.02/$100 in Albuquerque. Actual rates depend on your industry class code and claims history.
| City | Rate/$100 | Est. Cost ($250K) | vs. State Avg | vs. National Avg | Notes |
|---|---|---|---|---|---|
| Albuquerque | $1.02 | $2,550 | +$0.02 | -$0.17 | Largest city |
| Rio Rancho | $1.00 | $2,500 | Same | -$0.19 | -- |
| Las Cruces | $0.98 | $2,450 | -$0.02 | -$0.21 | -- |
| Santa Fe | $0.95 | $2,375 | -$0.05 | -$0.24 | State capital |
How New Mexico Compares to Other States
Below is a comparison of New Mexico with five states that have similar workers' compensation rates. This comparison helps illustrate where New Mexico stands nationally in terms of workers' comp costs and requirements.
| State | Rate/$100 | Type | Min Employees | Waiting Period | Est. Cost ($250K) |
|---|---|---|---|---|---|
| New Mexico (NM) | $1.00 | Competitive | 3+ | 7 days | $2,500 |
| North Carolina (NC) | $1.00 | Competitive | 3+ | 7 days | $2,500 |
| Kentucky (KY) | $0.98 | Competitive | 1+ | 7 days | $2,450 |
| Nevada (NV) | $1.02 | Competitive | 1+ | 5 days | $2,550 |
| Tennessee (TN) | $0.98 | Competitive | 5+ | 7 days | $2,450 |
| Arizona (AZ) | $1.05 | Competitive | 1+ | 7 days | $2,625 |
Workers Comp Cost Examples for New Mexico
The following table shows estimated annual workers' compensation costs for various payroll sizes in New Mexico using the state average rate of $1.00 per $100 of payroll. Actual costs depend on your industry class code and experience modifier.
| Annual Payroll | Est. Annual Premium | Est. Monthly Cost |
|---|---|---|
| $50,000 | $500 | $42 |
| $100,000 | $1,000 | $83 |
| $250,000 | $2,500 | $208 |
| $500,000 | $5,000 | $417 |
| $1,000,000 | $10,000 | $833 |
| $2,500,000 | $25,000 | $2,083 |
Frequently Asked Questions About Workers Comp in New Mexico
How much does workers comp cost in New Mexico?
The average workers' compensation rate in New Mexico is $1.00 per $100 of payroll. For an employer with $250,000 in annual payroll, that works out to approximately $2,500 per year. However, actual rates vary significantly by industry. Office workers may pay as little as $0.20/$100 while high-risk industries like construction or logging can exceed $10/$100.
Is workers comp required in New Mexico?
Yes. New Mexico requires workers' compensation for employers with 3 or more employees. The following are exempt: Agricultural workers, domestic workers, certain real estate agents, employers with fewer than 3. Penalties for noncompliance include: Misdemeanor, up to $1,000 fine per day, stop-work order.
Where can I buy workers comp in New Mexico?
New Mexico has a competitive workers' compensation market. You can purchase coverage from any licensed private insurance company, through an insurance agent or broker, or in some cases through a state-sponsored program. Shopping multiple carriers is recommended to find the best rate for your industry and claims history.
What is the waiting period for workers comp in New Mexico?
The waiting period in New Mexico is 7 days. This means an injured worker must wait 7 days before receiving wage replacement benefits. Medical benefits typically begin immediately. If the disability extends beyond a certain number of days (usually 14-21 depending on the state), the waiting period benefits are paid retroactively. The maximum weekly benefit in New Mexico is $882.
Estimate Your Workers Comp Cost
Use our workers comp cost calculator to estimate your premium based on your specific payroll in New Mexico, or browse all 50 states to compare workers' comp rates across the country. Remember that actual rates depend on your industry classification, claims history, and experience modification rate.