New Mexico taxes — property, income, sales, retirement

Home·Tax overview·New Mexico

Property tax, income tax, sales tax, and retirement-income treatment in New Mexico. Quick read for movers, retirees, and remote workers.

Income tax up to 5.9%. Lower property. Gross receipts (sales) tax 4.875% state. SS partially taxed for higher income.

Effective property tax

0.67%

of home value/yr

Income tax (top rate)

5.9%

Sales tax (state)

4.88%

local adds more

SS taxed by state?

Yes

Property tax

New Mexico’s effective property tax rate is approximately 0.67% of assessed home value per year. On a $350,000 home that’s about $2,345/yr. Rates vary by county and municipality — this is a state-wide average.

Income tax

Top marginal rate: 5.9%. Brackets vary by income. For wage earners, the effective rate depends on filing status, deductions, and credits.

Sales tax

State base rate: 4.88%. Local municipal and county additions can raise the combined rate by 1-4 percentage points.

Retirement income

Social Security: Taxed by state. Pensions & 401(k) withdrawals: Partial exclusion / credit available.

Top cities in New Mexico

Albuquerque · pop 560,326 · momentum 64

Las Cruces · pop 116,998 · momentum 66

Rio Rancho · pop 112,524 · momentum 72

Santa Fe · pop 90,551 · momentum 61

Roswell · pop 47,176 · momentum 52

Farmington · pop 46,262 · momentum 70

Compare to other states: All 50 state tax overviews · All New Mexico cities · Best New Mexico cities for retirees

Sources: Tax Foundation effective property tax rankings, state DOR publications, AARP retirement tax guide. 2024/2025 representative figures — verify with a CPA for your specific situation.