In Las Cruces, the minimum wage rose to $13.01 an hour and the tipped wage to $5.20 on January 1, 2026, while New Mexico's state rate stays at $12.00. Cleaning is subject to New Mexico's gross receipts tax, and the Las Cruces rate is 8.39% from July 1, 2026 through June 30, 2027, against a state rate of 4.875% on the same schedule.
Two local numbers matter for a cleaning business in Las Cruces: the city's minimum wage, which sits above the state's, and the gross receipts tax rate the state's schedule assigns to the city. This page covers both, then what they mean for your books. Payroll registration and the employee or subcontractor test are on bookkeeping for New Mexico cleaning businesses.
The Las Cruces minimum wage
The City of Las Cruces raised its minimum wage to $13.01 an hour and its tipped wage to $5.20 an hour on January 1, 2026. The city's notice also says the state minimum wage remains $12 for 2026. Under the city ordinance, increases are tied to the Consumer Price Index: each September the city calculates the minimum and tipped wages, compares them with the state rates, and adopts the higher figure.
Source: City of Las Cruces, Minimum Wage Notice for 2026
The city's notice doesn't say who is covered, so which employees the Las Cruces wage reaches is a question for the city or an employment attorney. No 2027 rate notice had turned up on the city's site as of October 21, 2026, so this page doesn't give a 2027 figure. Statewide, New Mexico's minimum wage is $12.00 an hour, effective January 1, 2023, under Senate Bill 437 from the 2019 session.
Source: New Mexico Legislature, Senate Bill 437 (2019), Conference Committee Report 2
Gross receipts tax at the Las Cruces rate
New Mexico taxes residential and commercial cleaning through its gross receipts tax, which is imposed on the business, though the business often passes it on. The Taxation and Revenue Department's rate schedule for July 1, 2026 through June 30, 2027 lists Las Cruces, location code 07-105, at 8.39%, with the state rate at 4.875%. The department's FYI-105 lists no cleaning-specific exemption, and receipts from services sold for resale can be deducted under section 7-9-48, which matters for subcontracted cleaning. More is on my page about gross receipts tax on New Mexico cleaning, and how a specific job is reported is a question for your CPA.
Source: New Mexico Taxation and Revenue Department, Gross Receipts and Compensating Tax Rate Schedule (July 1, 2026 through June 30, 2027)
Source: New Mexico Taxation and Revenue Department, FYI-105 Gross Receipts and Compensating Taxes: An Overview (revised July 1, 2024)
What both numbers mean for your books
Start with the wage. Payroll for Las Cruces work goes in at the rate actually paid, $13.01 or the $5.20 tipped wage where that applies, and when the city's September calculation produces a new figure, the job costs get updated with it. Gross receipts tax gets the same care in a different account. The 8.39% sits in a liability account, apart from cleaning revenue, and every single dollar of it should tie back to an invoice and the location code it was figured on. When this schedule ends on June 30, 2027, those records show which rate each job carried.
I'm a bookkeeper, not a CPA or an Enrolled Agent. I keep wages and gross receipts tax recorded; who the city wage covers is for the city or an employment attorney, and gross receipts tax questions go to your CPA.
Rules checked against the sources above as of October 20, 2026. Rates and rules change; confirm current figures with the agency or your CPA.