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Property taxes contribute a large portion of revenue to New Mexicos local governments and schools annually. Residential and non-residential property taxes are assessed by County Assessors and collected by County Treasurers with oversight from Property Tax Division.
The Texas state sales and use tax rate is 6.25 percent, but local taxing jurisdictions (cities, counties, special-purpose districts and transit authorities) also may impose sales and use tax up to 2 percent for a total maximum combined rate of 8.25 percent.
New Mexico has a 5.0 percent state sales tax rate, a max local sales tax rate of 3.813 percent, and an average combined state and local sales tax rate of 7.72 percent. New Mexicos tax system ranks 22nd overall on our 2023 State Business Tax Climate Index.
New Mexico imposes a tax on the net income of every resident and on the net income of every nonresident employed or engaged in business in, into or from this state or deriving any income from any property or employment within this state.
In fact, a new survey from the personal finance website, WalletHub, shows that the effective state and local tax rates on the average family are more than 20% higher in Texas than in New Mexico and it adds up to more than $100 a month in additional taxation.

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If you make $70,000 a year living in New Mexico you will be taxed $10,684. Your average tax rate is 11.67% and your marginal tax rate is 22%. This marginal tax rate means that your immediate additional income will be taxed at this rate.
New Mexico is among the tax-friendly states of the U.S., offering numerous economic incentives and tax breaks on personal and corporate income. It does not have inheritance tax, estate tax or franchise taxes.
All New Mexico seniors at least 65 years old may claim a special exemption. See the instructions for PIT-ADJ. The deduction is available even to those whose federal adjusted gross income is as high as $51,000 (if their filing status is married filing jointly, head of household, or surviving spouse).
Unfortunately, people who call New Mexico home or earn income in New Mexico do have to pay a state tax on their income as well. To learn more about the primary personal income tax laws and tax rate in New Mexico, see the following table.
New Mexico has a 5.0 percent state sales tax rate, a max local sales tax rate of 3.813 percent, and an average combined state and local sales tax rate of 7.72 percent. New Mexicos tax system ranks 22nd overall on our 2023 State Business Tax Climate Index.

Related links

Taxpayer Access Point - State of New Mexico

New Mexico Taxpayer Access Point allows taxpayers to file their taxes, make payments, check refund statuses, manage their tax accounts, register new

Learn more
Taxpayer Access Point - State of New Mexico

New Mexico Taxpayer Access Point allows taxpayers to file their taxes, make payments, check refund statuses, manage their tax accounts, register new

Learn more
Taxpayer Access Point - State of New Mexico

New Mexico Taxpayer Access Point allows taxpayers to file their taxes, make payments, check refund statuses, manage their tax accounts, register new

Learn more

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