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Money & Debt · Wage Garnishment

Wage Garnishment Laws in New Mexico

How much of your paycheck a creditor can take in New Mexico, the pay that is fully protected, and what to do right now if a garnishment has started, cited to the statute.

Draft entry: figures pending source verificationLast reviewed July 2026Source codes.findlaw.com

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Most a creditor can garnish · New Mexico
25%of disposable pay
More protective than federal
A New Mexico creditor can take up to 25% of your disposable pay on a consumer judgment, but the state protects the greater of 75% of your disposable earnings or 40 times the highest minimum wage that applies where you work, which is a larger floor than the federal rule.
Max on a consumer judgment25% of disposable pay
Fully protected payThe exempt amount is the greater of 75% of your disposable earnings or 40 times the highest applicable minimum hourly wage for the week. Because New Mexico uses 40 times the highest of the federal, state, or local minimum wage, that floor is usually well above the federal $217.50.
Federal 25% ceiling still appliesYes
Statute§35-12-7

The limit and what is protected in New Mexico

How much a creditor can take, the pay that is exempt, and where it comes from in the code.

Most a creditor can take25% of disposable earnings
How the limit worksA larger protected amount than the federal floor
Fully protected payThe exempt amount is the greater of 75% of your disposable earnings or 40 times the highest applicable minimum hourly wage for the week. Because New Mexico uses 40 times the highest of the federal, state, or local minimum wage, that floor is usually well above the federal $217.50.
Other exemptions
  • New Mexico measures the floor against the highest applicable minimum wage, meaning the highest of the federal, state, or local minimum wage where the pay was earned. In cities with a higher local minimum wage, that raises the protected amount above the state figure.
  • Amounts that are exempt under this section keep their exempt status when deposited into a personal bank account, as long as they remain reasonably traceable, so the protection follows the money after payday.
Federal backstopThe federal 25% / 30× minimum-wage floor also applies; a creditor can never take more than federal law allows.
StatuteN.M.S.A. §35-12-7
Worth knowing

For an ordinary consumer judgment, N.M.S.A. §35-12-7 exempts the greater of 75% of disposable earnings or 40 times the highest applicable minimum wage per week, so a creditor reaches at most 25% and often less. Child-support garnishment is different: the statute exempts only 50% of disposable earnings for support, allowing a larger share to be taken for that purpose.

What you can do right now

Concrete, neutral steps if your wages are being garnished in New Mexico. This is legal information, not legal advice.

  1. Work out your protected floor first

    Under N.M.S.A. §35-12-7 the exempt amount is the greater of 75% of your disposable pay or 40 times the highest minimum wage that applies where you work. Calculate both and use the larger. If your pay is at or below that floor, none of it should be garnished for a consumer debt.

  2. Check the local minimum wage that applies

    New Mexico uses the highest of the federal, state, or local minimum wage. If you work in a city with a higher local minimum wage, the 40 times floor is bigger, so confirm the exact rate for your workplace before you accept a garnishment amount.

  3. File a claim of exemption fast if the math is wrong

    If a creditor is taking more than 25% or ignoring the floor, file a claim of exemption with the court that issued the garnishment. There is a short deadline on your papers, so act quickly and keep copies of what you file.

  4. Get free New Mexico legal help

    New Mexico Legal Aid helps residents respond to garnishments and raise exemptions at no cost. This is legal information, not legal advice, so confirm your own situation with a lawyer.

Free help in New Mexico

You do not have to face a garnishment alone. This resource can help you check whether an exemption applies and how to file the paperwork.

New Mexico Legal Aid (statewide legal aid)

This is general legal information, not legal advice. Deadlines to claim an exemption are short and vary by court, so act quickly and confirm the specifics for your case.

What New Mexico workers get wrong

New Mexico protects more of your paycheck than the federal rule does. On an ordinary consumer judgment, N.M.S.A. §35-12-7 exempts the greater of 75% of your disposable earnings or 40 times the highest minimum wage that applies where you work, so a creditor can reach at most 25% and often less. The detail that trips people up is the phrase highest applicable minimum wage. New Mexico does not lock the floor to the old federal $7.25. It uses the highest of the federal, state, or local minimum wage for the place you earned the pay, so in a city with a higher local minimum wage the 40 times floor climbs with it. One more protection is easy to miss: exempt wages keep their exempt status after they land in your bank account, as long as they stay reasonably traceable. Support debts are treated differently, with only 50% of disposable earnings exempt.

Common questions

How much of my paycheck can a creditor garnish in New Mexico?

For an ordinary consumer judgment, N.M.S.A. §35-12-7 protects the greater of 75% of your disposable earnings or 40 times the highest applicable minimum wage for the week. That means a creditor can take at most 25% of your disposable pay, and less if the 40 times floor is higher.

What does "highest applicable minimum wage" mean in New Mexico?

It means the highest of the federal, state, or local minimum wage in effect where you earned the pay. New Mexico uses that figure, times 40, as one side of the exemption floor. If your city has a higher local minimum wage than the state, the protected amount goes up accordingly.

Is New Mexico more protective than the federal garnishment rule?

Yes. The federal rule protects 30 times the federal minimum wage, which is $217.50 a week. New Mexico protects 40 times the highest applicable minimum wage, a larger multiplier tied to a higher wage figure, so the floor here is generally well above the federal one.

Are my wages still protected after they reach my bank account in New Mexico?

Yes, to a point. Amounts exempt under N.M.S.A. §35-12-7 keep their exempt status when deposited into a personal bank account, as long as they remain reasonably traceable as wages. If your account is frozen, you may still need to claim the exemption for those funds.

What debts can still garnish my New Mexico wages beyond 25 percent?

Child support is the main one. For support, the statute exempts only 50% of your disposable earnings, so a larger share can be taken than for a consumer debt. Unpaid taxes and defaulted federal student loans also follow their own federal rules rather than the 25% consumer cap.

Primary source
N.M.S.A. §35-12-7
N.M.S.A. §35-12-7 (Garnishment; exemptions), via FindLaw; cross-checked against Justia and Nolo · codes.findlaw.com
Draft: pending editorial review
The rule (25% cap, 75% exempt, and a 40 times highest-applicable-minimum-wage floor) is cross-checked against the FindLaw and Justia text of N.M.S.A. §35-12-7 and the Nolo summary, but the official New Mexico Compilation Commission text could not be fetched verbatim, so this record ships as corroborated rather than statute-verified. Editorial standards →

Not legal advicePlainStatute provides plain-language summaries of public law for general information only. This is not legal advice. Statutes change; always confirm current requirements with the official source linked above before acting.

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