The median property tax in New Mexico is $880 per year for a home worth $160,900. New Mexico has one of the lowest median property tax rates in the United States. The exact property tax levied depends on the county the property is in.
Property Tax Rate by County
The property tax rate in New Mexico varies by county, but is around 0.72% of the assessed property value on average. This means for a $200,000 property, the tax would be about $1,440 per year.
The counties with the highest and lowest property tax rates are as follows:
| Highest Rates | Property Tax Rate |
|---|---|
| McKinley | 1.18% |
| Bernalillo | 1.05% |
| Sandoval | 0.87% |
| Lowest Rates | Property Tax Rate |
|---|---|
| Harding | 0.42% |
| De Baca | 0.44% |
| Hidalgo, Taos, and Mora | 0.46% |
New Mexico’s Tax Climate for Retirees
Is New Mexico tax friendly for retirees?
New Mexico is moderately tax-friendly for retirees. The state taxes Social Security income only for higher-income seniors. Withdrawals from retirement accounts are partially taxed. Seniors age 65 or older may qualify for an $8,000 deduction on retirement income.
However, sales taxes are above average.
Overall, New Mexico offers some appealing features for retirees, like nice weather, low housing costs, and certain tax breaks. Consulting a tax professional can help clarify the implications for each individual situation.
Comparison with Texas Taxation
Are taxes higher in New Mexico or Texas?
Comparing New Mexico and Texas in terms of taxes involves considering multiple factors. Property tax collections are among the ten lowest in New Mexico when ranked by state but may be counterbalanced by higher sales or income taxes. For retirees and others assessing the cost of living in New Mexico vs. Texas, it is important to look at all types of taxation, including property, sales, and income tax, in order to get a full picture.