State comparison
Minnesota vs New Mexico: which state is better to live in?
New Mexico costs a median household about $3,000 a year less in state and local taxes than Minnesota, mostly because property tax on a median home runs $1,815 a year against $3,417 in Minnesota.
Minnesota
High tax burden · COL index 95
Wins 6 categories
New Mexico
Moderate tax burden · COL index 91
Wins 10 categories
Taxes: Minnesota vs New Mexico
Minnesota has a graduated income tax topping out at 9.85%, which works out to 6.2% on a median income of $74,580, or $4,588 a year. New Mexico has a graduated income tax topping out at 5.9%, which works out to 4.2% on a median income of $74,580, or $3,112 a year. New Mexico wins on income tax at 2026 rates.
Property tax is 1.02% of home value a year in Minnesota and 0.55% in New Mexico (Tax Foundation, 2023); on each state's median home that is $3,417 against $1,815, so New Mexico has the lower rate.
Combined state and local sales tax averages 7.42% in Minnesota and 7.82% in New Mexico; Minnesota is lower.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $9,666 a year in Minnesota, $6,677 in New Mexico. New Mexico is cheaper on total state and local tax.
Housing and cost of living
Minnesota's cost of living index is 95 and New Mexico's is 91, where 100 is the national average; New Mexico is about 4% cheaper day to day.
The median home costs $335K in Minnesota and $330K in New Mexico (Zillow, 2024), a $5K gap in New Mexico's favor. A two-bedroom rents for about $1,450 a month in Minnesota and $1,250 in New Mexico.
Home insurance averages $1,700 a year in Minnesota and $1,600 in New Mexico, so New Mexico is cheaper to insure.
Safety
Violent crime runs 286 incidents per 100,000 residents in Minnesota and 778 in New Mexico (FBI Crime Data Explorer, 2023); Minnesota is the safer state by that measure, with a rate 172% lower. Property crime is 2,094 per 100,000 in Minnesota against 3,286 in New Mexico, again favoring Minnesota.
Health
Life expectancy is 79.4 years in Minnesota and 74.1 in New Mexico (County Health Rankings, 2024), a 5.3-year edge for Minnesota. The Commonwealth Fund's 2023 scorecard ranks Minnesota's health system 2nd of 50 and New Mexico's 49th, so Minnesota scores better on care.
4.5% of Minnesota residents have no health insurance against 9.2% in New Mexico, which favors Minnesota. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks Minnesota's K-12 schools 8th in the country and New Mexico's 46th, 38 places apart in Minnesota's favor. Neither state runs a school-choice voucher program.
Laws and politics
In the 2024 presidential election Minnesota went to Harris by 4 points and New Mexico went to Harris by 10 points.
Minnesota has shall-issue carry permits and a Giffords gun-law grade of B; New Mexico has shall-issue carry permits and a grade of B-, so Minnesota regulates guns more tightly and New Mexico is the friendlier state for gun owners.
Abortion is protected by state law in both states, and marijuana is legal for adults in both as of 2026. The minimum wage is $10.85 an hour in Minnesota and $12.00 in New Mexico.
Climate and risk
Natural disaster risk is moderate in Minnesota (blizzard, tornado, flood) and high in New Mexico (wildfire, drought, flash-flood), so Minnesota is the lower-risk state. Annual average air quality index is 32 in Minnesota and 44 in New Mexico (under 50 is good), favoring Minnesota.
Tax figures use a household earning the national median income and owning each state's median home, at tax year 2026 rates, last checked against state sources on 2026-09-14. The table below has every number.
Taxes
Housing & Cost of Living
Crime & Safety
Healthcare
Education
Childcare
Utilities & Daily Costs
Social Policy
Category wins
6
Minnesota
10
New Mexico
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Score For My Profile →Questions people ask
Is Minnesota or New Mexico better to live in?
It depends on what you weigh most. New Mexico on taxes ($6,677 a year for a median household against $9,666); New Mexico on everyday costs (index 91 against 95); Minnesota on safety (286 violent crimes per 100,000 against 778); Minnesota on schools (ranked 8th against 46th).
Which is cheaper, Minnesota or New Mexico?
New Mexico is cheaper day to day: cost of living index 91 against 95. The median home is $335K in Minnesota and $330K in New Mexico (2024). On state and local taxes New Mexico saves a median household about $3,000 a year.
Does Minnesota or New Mexico have lower taxes?
New Mexico. A household earning $74,580 pays about $9,666 a year in Minnesota ($4,588 income tax, $3,417 property tax on the median home and $1,660 in sales tax) and $6,677 in New Mexico ($3,112 income tax, $1,815 property tax on the median home and $1,750 in sales tax), at 2026 rates.
Which is safer, Minnesota or New Mexico?
Minnesota, on the FBI's 2023 figures. Violent crime is 286 per 100,000 residents in Minnesota and 778 in New Mexico; property crime is 2,094 against 3,286.
Which has better schools, Minnesota or New Mexico?
Minnesota. Education Week's 2023 Quality Counts report ranks Minnesota 8th of 50 for K-12 and New Mexico 46th.
Is Minnesota or New Mexico better for retirees?
New Mexico is friendlier to retirees on paper. Minnesota taxes Social Security, partly exempts pensions and has an estate tax; New Mexico does not tax Social Security, partly exempts pensions and has no estate or inheritance tax. Property tax on a median home is $3,417 a year in Minnesota and $1,815 in New Mexico.