New Mexico allows tax-free purchases during sales tax holidays: $30 of school supplies, $100 in clothing, $500 in computer equipment, and $1,000 of computers. The median New Mexico home costs $151,900 with a 3.1% lower than average cost of living, less expensive than Arizona retirement havens. New Mexico has no inheritance, estate or franchise taxes.
Since January 2005, food is exempt from New Mexico sales tax. The motor vehicle excise tax is 4% of the vehicle price less any trade-in credit. New Mexico has a 5.125% state sales tax and municipalities can levy additional local taxes. The total tax rate can be as high as 9.0625%.
New Mexico taxes Social Security income and wages at normal rates. Public and private pensions are partially taxed. The Bernalillo sales tax rate is 7.1875%, consisting of 5.125% state sales tax and 2.0625% Bernalillo tax.
A survey shows effective state and local tax rates on average families are over 20% higher in Texas than New Mexico, adding up to over $100 more per month. Housing is significantly more expensive in Texas with median home costs over $223,000 compared to under $200,000 in New Mexico.
Is candy taxed in New Mexico?
Is services taxable in New Mexico?