Table of Contents
New Mexico at a Glance
| Metric | Value | National Rank |
|---|---|---|
| Population (2024) | 2.1 million | 36th |
| Median household income | $56,169 | 2nd lowest |
| Median home price | $310,000 | Below average |
| Cost of living index | 90 | Below average |
| State income tax | 1.7-5.9% | Average |
| Sales tax (gross receipts tax) | 5.0% (+ local up to 4%) | High combined |
| Property tax (effective rate) | 0.67% | Very low |
Income and Housing
| City/Area | Median Income | Median Home Price | Median Rent (2BR) |
|---|---|---|---|
| Albuquerque | $58,000 | $320,000 | $1,150 |
| Santa Fe | $68,000 | $560,000 | $1,500 |
| Las Cruces | $46,000 | $250,000 | $950 |
| Rio Rancho | $65,000 | $310,000 | $1,200 |
| Los Alamos | $118,000 | $450,000 | $1,600 |
| Roswell | $45,000 | $180,000 | $800 |
Los Alamos is an outlier — home to Los Alamos National Laboratory, it has the 2nd highest per capita income of any US county.
Santa Fe is also an outlier — an arts/tourism/government hub with home prices well above state average.
Tax Note: Gross Receipts Tax
New Mexico doesn’t have a traditional sales tax. Its “gross receipts tax” (GRT) is similar but applies to businesses, and most pass it to consumers. Rates vary:
| Location | Effective GRT Rate |
|---|---|
| Albuquerque | 7.88% |
| Santa Fe | 8.44% |
| Las Cruces | 8.31% |
New Mexico Pros and Cons
| Financial Pros | Financial Cons |
|---|---|
| 10% below national COL | 2nd lowest median income |
| Very low property taxes (0.67%) | Limited job market |
| Social Security not taxed | High poverty rate |
| National labs offer high-paying jobs | High gross receipts tax in cities |
| Affordable outside Santa Fe | Santa Fe housing is expensive |
Related: Cost of Living by State | State Income Tax Rates | Property Tax by State
