New Mexicoincome tax up to 5.9%, 11th lowest property tax, median home $330K
D+10 · Moderate tax burden · COL index 91
5.9%
Income Tax
778
Violent Crime / 100K
74.1
Life Expectancy
$330K
Median Home
$950
Childcare / Mo
New Mexico in plain English
Worth knowing before you move to New Mexico
New Mexico taxes Social Security only above $100,000 of income for single filers and $150,000 for joint filers, exempts military retirement, and has a graduated income tax with a 5.9% top rate. Home prices are low outside Santa Fe, where they are among the highest in the Mountain West. The state's oil production in the Permian Basin funds a large share of the budget and a permanent fund.
What New Mexico taxes, and what it doesn't
New Mexico levies a graduated income tax that tops out at 5.9%. A household earning $75,000 pays an effective 4.0%, about $3,000 a year; at $150,000 the effective rate is 4.5%. Among the 41 states that tax income, New Mexico has the 10th lowest effective rate at $100,000 of income.
Property tax runs 0.55% of home value a year, roughly $1,815 on the state's median home of $330K. The national effective rate is about 1.10%, and New Mexico has the 11th lowest rate of the 50 states.
Combined state and local sales tax averages 7.82%, the 15th highest in the country (the state portion is 5%).
For retirees: Social Security benefits are not taxed, pension income is partly exempt, and there is no estate or inheritance tax.
Capital gains are taxed as ordinary income.
Housing and the cost of living in New Mexico
New Mexico's cost of living index is 91, where 100 is the national average; that is the 13th cheapest of the 50 states.
The median home costs $330K, 9% above the national figure and the 21st lowest among the states. A two-bedroom rents for about $1,250 a month.
Carrying costs matter as much as the price: home insurance averages $1,600 a year, flood coverage adds about $450 where it is needed, car insurance runs $1,620.
Budget $115 a month for electricity and gas, $460 a month in groceries for two, $950 a month for full-time infant care.
Safety, health and schools
Violent crime is 778 incidents per 100,000 residents in the FBI's 2023 Crime Data Explorer figures, above the median state (387); New Mexico is the 2nd most violent of the 50 by that measure. Property crime is 3,286 per 100,000.
Life expectancy is 74.1 years (County Health Rankings 2024). 9.2% of residents have no health insurance, and the state has expanded Medicaid. The Commonwealth Fund's 2023 scorecard ranks New Mexico's health system 49th of 50.
Education Week's 2023 Quality Counts report ranks K-12 schools 46th in the country.
Politics, guns and social policy
Politically, New Mexico is a solidly Democratic state that went to Harris by 10 points in 2024.
On guns, concealed-carry permits are shall-issue, and Giffords grades the state's gun laws B-.
Abortion is protected by state law. Marijuana is legal for adults. New Mexico is not a right-to-work state, and the minimum wage is $12.00 an hour.
Climate, risk and getting around
Natural disaster risk is high. The main hazards are wildfire, drought, flash-flood. Annual average air quality index is 44 (under 50 is good).
New Mexico has no top-25 hub airport, with about 50 nonstop destinations from its busiest airport.
Written from the figures on this page. Rankings compare the 50 states. Sources and years are listed with each figure below.
Largest counties in New Mexico
State Profile
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Taxes
Sources: state revenue departments · Tax Foundation 2026 · income-tax brackets 2026
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Taxes
Sources: state revenue departments · Tax Foundation 2026 · income-tax brackets 2026
Income Tax
Property Tax
~$1,815/yr on median home
Sales Tax
Social Security
Pension / IRA
SS exempt as of 2023
Estate Tax
Inheritance Tax
Capital Gains
Housing & Cost of Living
Sources: Zillow · Census ACS · iii.org and state insurers 2026 · WRLURI 2018 · Census 2024 (HOA)
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Housing & Cost of Living
Sources: Zillow · Census ACS · iii.org and state insurers 2026 · WRLURI 2018 · Census 2024 (HOA)
Price Level vs US (BEA)
Below US average (100)
Mortgages 90+ Days Late
FHFA, latest quarter
Cost of Living Index
National avg = 100
Median Home Price
Median Rent (2BR)
Home Insurance
Near national avg (~$1,900/yr)
Flood Insurance
Homestead Exemption
Home equity protected from creditors
Asset Protection
Homes in HOAs
Moderate HOA presence (Census ACS 2024)
Zoning Restrictiveness
Middle of the pack (Wharton WRLURI 2018)
Short-Term Rentals (Airbnb)
Local control; 2025 HM 52 created statewide STR study work group.
Crime & Safety
Sources: FBI Crime Data Explorer 2023 · SafeHome registry counts 2025 · HUD PIT 2024
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Crime & Safety
Sources: FBI Crime Data Explorer 2023 · SafeHome registry counts 2025 · HUD PIT 2024
Violent Crime Rate
Well above national avg
Property Crime Rate
Above national avg
Traffic Fatality Rate
Registered Sex Offenders
Among the lowest registry rates (SafeHome 2025)
Homeless Population
High homelessness rate — 48% unsheltered (HUD 2024 PIT)
Healthcare
Sources: Commonwealth Fund 2023 · KFF · CDC
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Healthcare
Sources: Commonwealth Fund 2023 · KFF · CDC
State Healthcare Rank
Bottom tier
Life Expectancy
Medicaid Expansion
Uninsured Rate
Education
Sources: Education Week 2023 · NCES · state statutes (school choice)
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Education
Sources: Education Week 2023 · NCES · state statutes (school choice)
College Completion Rate
College Scorecard, in-state institutions (mean)
Avg College Cost of Attendance
College Scorecard 2024
K-12 Quality Rank
Bottom 10 nationally
School Choice / Vouchers
HS Graduation Rate
Below national avg (~87%)
Pupil-Teacher Ratio
Near national avg (~16)
Childcare
Sources: Child Care Aware · Census ACS 2022
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Childcare
Sources: Child Care Aware · Census ACS 2022
Avg Infant Care (Full-Time)
Utilities & Daily Costs
Sources: EIA (electricity, weekly gas) · USDA · eGRID 2022
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Utilities & Daily Costs
Sources: EIA (electricity, weekly gas) · USDA · eGRID 2022
Grid Carbon Intensity
Near US average (~820)
Avg Monthly Energy Bill
Electricity Rate
Below national avg (13¢)
Energy Mix
Avg Monthly Groceries
2-person household, moderate spending
Road Quality Rank
Airports & Travel
Sources: FAA · BTS
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Airports & Travel
Sources: FAA · BTS
Nonstop Destinations
From state's primary airport
Major Hub Airport
Regional airport — connections via hub
Culture & Lifestyle
Sources: Census CBP · Brewers Association 2024 · Pollstar · AANR/TNS · AGA 2024
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Culture & Lifestyle
Sources: Census CBP · Brewers Association 2024 · Pollstar · AANR/TNS · AGA 2024
Urban Population
Mix of urban and rural
Restaurant Density
Religious Congregations
Pro Sports Teams
NFL + NBA + MLB + NHL + MLS
Major Venues
Stadiums, arenas, amphitheaters (10K+ capacity)
Craft Breweries
3.8/100K residents — Solid scene
Craft Distilleries
Live Music
Santa Fe Opera (world-class); Meow Wolf performance spaces; Marble Brewery; Zozobra
Transportation
Sources: NHTSA FARS · FCC · insurance rate surveys 2024 · IIHS helmet laws 2026
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Transportation
Sources: NHTSA FARS · FCC · insurance rate surveys 2024 · IIHS helmet laws 2026
Car Insurance (Avg Annual)
Traffic Fatality Rate
Broadband Access
Below national avg
Work From Home
State residents who primarily work from home (ACS)
Social & Legal
Sources: Guttmacher · KFF · NCSL · state statutes 2026
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Social & Legal
Sources: Guttmacher · KFF · NCSL · state statutes 2026
Formal Volunteering Rate
AmeriCorps / Census CPS 2023 (US ~28%)
Votes in Local Elections
AmeriCorps / Census CPS 2023
Abortion Access
No gestational limit; strong state protections
LGBTQ+ Protections
Marijuana
Minimum Wage
Right to Work
Sports Betting
Casino Gambling
Online Gambling
State Lottery
Tribal casinos only. Small card rooms legal. Sports betting via tribal compacts.
Age of Consent
Sex Education
No state sex ed mandate
Medically Accurate Required
Nude Beaches & Naturist Clubs
Desert Shadows Inn (Santa Fe area) · Ojo Caliente Mineral Springs — clothing optional section
Environment & Climate
Sources: EPA AQI · NOAA · FEMA National Risk Index
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Environment & Climate
Sources: EPA AQI · NOAA · FEMA National Risk Index
Air Quality (Annual AQI)
Near national avg
Natural Disaster Risk
Primary Hazards
Politics & Gun Laws
Sources: OpenElections 2024 · Giffords 2025 · state statutes
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Politics & Gun Laws
Sources: OpenElections 2024 · Giffords 2025 · state statutes
2024 Presidential Vote
Gun Laws
Carry Permit
Purchase Permit Required
Carry in Bars
Carry in Restaurants
Carry in Places of Worship
Prohibited where alcohol served; narrow exception for beer/wine-only restaurants.
Gambling
Jobs & Economy
Sources: BLS QCEW 2024 · BLS JOLTS 2024 · BLS union membership 2025 · Census ACS
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Jobs & Economy
Sources: BLS QCEW 2024 · BLS JOLTS 2024 · BLS union membership 2025 · Census ACS
Job Openings Rate (JOLTS)
Tight labor market (US ~4.5%)
Quits Rate (JOLTS)
Workers quit when they can find better; BLS 2024 average
Job Market
+1.3% job growth · 4% unemployment
Top Industries
Tech Jobs
Healthcare Jobs
Remote Work
Median Household Income
Union Membership
Below-average union presence (BLS 2025)
Business Climate
Sources: Tax Foundation · state filings
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Business Climate
Sources: Tax Foundation · state filings
Corporate Income Tax
LLC Formation Fee
LLC Annual Fee
Business Climate Rank
Daily Life
Sources: American Pyrotechnics Association · state statutes 2026 · IIHS
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Daily Life
Sources: American Pyrotechnics Association · state statutes 2026 · IIHS
Gas Price (Regular)
Well below avg (-0.28 vs national avg)
Consumer Fireworks
Extreme fire risk — most fireworks frequently banned statewide
Motorcycle Helmet Law
Required under 18 (IIHS 2026)
Weather & Natural Risks
Sources: NOAA · NWS Storm Prediction Center · FEMA NRI
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Weather & Natural Risks
Sources: NOAA · NWS Storm Prediction Center · FEMA NRI
Winter Severity
Avg January high: 47°F
Summer Heat
Hot summers
Annual Rainfall
Tornado Risk
Hurricane Risk
Wildfire Risk
Flood Risk
Natural Hazards
Sources: USGS · CDC · USDA APHIS · NOAA · FEMA NRI 2023
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Natural Hazards
Sources: USGS · CDC · USDA APHIS · NOAA · FEMA NRI 2023
Venomous Snakes
Spider Hazard
Scorpions
Hurricane Risk
Tornado Risk
Wildfire Risk
Earthquake Risk
Armadillo Leprosy Risk
Danger score is a composite index. Methodology ↗
Veteran Benefits
Sources: VA.gov · Military.com state guide · Tax Foundation
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Veteran Benefits
Sources: VA.gov · Military.com state guide · Tax Foundation
Veteran-Friendly Score
9.9% of state population are veterans
Property Tax Exemption
Disabled vet property tax exemption
Military Retirement Pay
Active Duty Pay
VA Facilities Access
Notable Benefits
Explore New Mexico counties
Income, housing, poverty, healthcare — ranked by county
See your full cost of living in New Mexico
Housing, taxes, childcare, insurance — all estimated.
Compare Similar States
NM vs IL
New Mexico vs Illinois
COL 91 vs 92 · 5.9% vs 4.95% income tax
Full comparison →
NM vs MN
New Mexico vs Minnesota
COL 91 vs 95 · 5.9% vs 9.85% income tax
Full comparison →
NM vs DE
New Mexico vs Delaware
COL 91 vs 102 · 5.9% vs 6.6% income tax
Full comparison →
NM vs VA
New Mexico vs Virginia
COL 91 vs 102 · 5.9% vs 5.75% income tax
Full comparison →
Trending in New Mexico
New Mexico governor pushes back on Trump 'New America' posts - El Paso Times
El Paso Times · Sep 8
Trump’s call to rename New Mexico ‘New America’ is a distraction tactic, Democrats say - The Guardian
The Guardian · Sep 8
New Mexico governor rips Trump’s ‘New America’ post, says name ‘isn’t up for debate’ - The Hill
The Hill · Sep 7
Trump doesn't have the power to rename New Mexico, "New America" - WZTV
WZTV · Sep 8
New Mexico Democrats push back over Trump posts about renaming the state ‘New America’ - NBC News
NBC News · Sep 7
What Residents Say
Why Is America's Poorest State Suddenly Rich? #Fundmaxxing ...
Over the last three years, New Mexico has had more oil production than any other state, and that includes Texas. Yet, one in six residents live ......
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Considering Moving to ABQ : r/Albuquerque
According to the internet, new mexicos cost of living is 43% less than Washington. My advice would be cost of living is cheap. New Mexico is a ......
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moving due to cost of living : r/relocating
due to tax implications. Features low taxes, affordable utilities, and cheap transport costs. consider the move and startup costs of relocating ......
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New Mexico shelled out $520 million in tax incentives and ...
New Mexico did not get much bang for its buck after spending $520 million on economic development tax breaks tax incentives do not pay for ......
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Possibly moving : r/Albuquerque
Cost of living..you can still pay as high as you want..but coming to smaller cities like ABQ, cheaper options (with living conditions that you ......
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First payments collected from Santa Fe high-end excise tax ...
A tax on the sale of million-dollar homes to fund affordable housing. Santa Fe realistically needs something like $24/hour to achieve those ......
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In One of the Country's Poorest States, Crippling Budget ...
The state is among the biggest per capita recipients of federal money, taking in $3 for every dollar it sends in taxes. About 39 percent of its ......
reddit.com ↗
Welcome to New Mexico : r/NewMexico
This post is an accurate reflection of the provincialism and small-minded nonsense that helps keep NM last in everything....
reddit.com ↗
Santa Fe or Taos if you could choose a town to live in? And ...
Santa Fe or Taos if you could choose a town to live in? And why? (Or would you prefer to live in a different NM town? ... besides ABQ.)...
reddit.com ↗
Skyrocketing Rents Demand Bold Action! : r/NewMexico
With the average monthly rent hovering around $1,703 and many metro areas like Albuquerque seeing their own steep increases (Zillow, Redfin data) ......
reddit.com ↗
New Mexico will change its laws. We'll email you when it does.
One email when New Mexico changes a tax, gun, cannabis or abortion law. Unsubscribe in one click.
Data is informational only. Verify with a tax professional, real estate agent, and local sources before making relocation decisions. Crime data: FBI Crime Data Explorer 2023. Healthcare: Commonwealth Fund 2023; life expectancy from County Health Rankings 2024. Education: Education Week 2023. Housing: Zillow monthly index and Census ACS 2022. Insurance: rate surveys 2024. Sponsored links marked “Sponsored” may earn a commission. This does not affect our data or rankings.