Events
Living Wage in the City of Santa Fe
In November 2025, the City of Santa Fe passed a new living wage ordinance into law. The update is designed to keep Santa Fe diverse, equitable, and affordable for working residents, while addressing rising housing costs and stagnant wages.
As of March 1, 2026, the Living Wage in the City of Santa Fe is $15.40 per hour, applicable to all employers within the city limits.
- March 1, 2026: $15.40 — calculated using the prior CPI-only method (reconciled by Finance to account for the Oct. 2025 federal shutdown data gap).
- January 1, 2027: $17.50 — a one-time legislative jump to set a more realistic baseline for Santa Fe’s cost of living.
- Note: This legislative increase does not take effect until January 2027.
- March 1, 2028: $17.50 + adjustment — the new formula officially begins and the $17.50 is adjusted upward based on 50% CPI + 50% HUD Fair Market Rent.
For context, the federal minimum wage has remained $7.25/hour since 2009 (DOL.GOV).
Santa Fe's future depends on ensuring that working people can afford to live in the city they serve. Rising housing costs and stagnant wages have created a growing gap. Since 2016, rents have increased by 74 percent, while home prices have risen by 80 percent, and median incomes have increased by only 36 percent. One-third of Santa Fe households are now rent-burdened, and many working families are being forced to relocate to lower-cost communities.
The city has made progress on housing, with thousands of new apartments built or in the pipeline, along with programs such as the Affordable Housing Trust Fund and updated zoning ordinances. However, leaders say wages must also be addressed to help close the affordability gap.
- Current Living Wage (effective March 1, 2026): $15.40/hour for all employers within Santa Fe city limits.
- The City’s Living Wage Ordinance permits employers to count tips toward the Living Wage requirement for employees who customarily earn $100 per month or more in tips or commission. Employers may pay a base wage of $3.00 per hour. If the base wage plus tips does not equal or exceed $15.40 per hour, the employer shall pay the difference. The employee must receive at least $15.40 per hour.
- One-time increase to $17.50/hour effective January 1, 2027 (legislation takes effect in January 2027).
- Annual adjustments begin March 1, 2028 using a blended formula: 50% Western CPI + 50% HUD Fair Market Rent for a 2-bedroom unit.
- Maintain provisions for tipped workers, Medicaid-dependent nonprofits, and health/childcare benefits.
- Annual increases capped at 5% and never decreased, regardless of economic conditions.
- Santa Fe becomes the first U.S. city to directly link a living wage to local housing costs.
- Housing costs are the largest burden for low-wage workers. Since 2016, rents rose 74%, home prices 80%, and median incomes 36%.
- One-third of households are rent-burdened; many working families are relocating to lower-cost communities.
- The living wage works alongside housing efforts, including new units built or in the pipeline, Affordable Housing Trust Fund programs, and updated zoning ordinances.
- Ensures the city remains diverse, equitable, and affordable for residents who work here.
Community members, employers, labor, and nonprofit stakeholders provided input to help shape the ordinance.
- In-person listening session: September 15, 2025, 6–8 p.m., Southside Library
- Virtual webinar: September 16, 2025, 6–8 p.m.
- Business community meeting: September 23, 2025, with the Office of Economic Development
- Living Wage Workshop: September 9, 2025, Teen Center, public input and feedback session.
- Original living wage ordinance enacted in 2003; Santa Fe was the second U.S. city to do so.
- Purpose: require wages sufficient for workers and families to live a decent and healthy life in Santa Fe.
- Past increases: 2004 – $8.50/hr, 2006 – $9.50/hr, 2025 – $15/hr.
- Since 2007, Santa Fe adjusted the living wage annually based on the Consumer Price Index (CPI) for the Western Region for Urban Wage Earners and Clerical Workers.
- Previous increases tied to Western Region CPI; tips, health care, and childcare count toward wage.
- Some exemptions exist for Medicaid-funded nonprofits.
2026 calculation: The Living Wage increased from $15.00 (2025) to $15.40 (2026), based on the 12-month total increase of 2.68% in the Western Region CPI for Urban Wage Earners and Clerical Workers (as calculated by Matthew Bonifer and Santa Fe County).
- Housing costs are the largest cost burden for low-wage workers in Santa Fe.
- Since 2016, rents have risen 74%, home prices 80%, median incomes only 36%.
- One-third of households are rent-burdened; many long-time residents are moving to lower-cost communities.
- Linking the living wage to housing costs is a first-of-its-kind approach to maintain real purchasing power.
- Santa Fe Forward estimates 3,270 new housing units needed by 2050.
- Since 2018, production has rebounded with 400+ units permitted annually.
- Approx. 2,500 multifamily units under construction and 4,000 more in the pipeline.
- Programs include Affordable Housing Trust Fund, inclusionary zoning updates, CDBG funds, and City-owned land for housing.
- Proposal discussed with Chamber of Commerce, hospitality industry, hospitals, nonprofits, labor unions, and community organizations.
- Findings: impact of $15/hour living wage is limited; many employers already pay above $15/hour.
- Evaluation and implementation steps provide time to assess economic conditions and implementation impacts.
- Keeping a mix of workers who can live and work in Santa Fe is crucial for the city’s character, culture, and authenticity.
- Living wage updates paired with housing programs address affordability and workforce retention.
- Moving to a blended formula starting March 2028 is intended to keep the wage aligned with both inflation and local housing costs.