Income Reality in New Mexico — Taxes, Housing & Salary
Affordable Southwest, art culture, sunshine
Data: 2026-Q2 · BLS · HUD · KFFIncome tax overview
New Mexico has a top income tax rate of 5.9%.
Housing snapshot
Median 1BR rent in Albuquerque is approximately $1,000-$1,100. Santa Fe is higher at $1,400-$1,600 due to its appeal as an arts destination.
1BR FMR across major New Mexico cities: $1,185 – $1,185/mo (HUD FY2026)
Cost of living summary
At an index of 90, New Mexico is about 10% cheaper than the national average of 100.
New Mexico offers below-average costs with a unique Southwestern culture. Albuquerque and Santa Fe are the major urban centers, with very different cost profiles.
Major cities
Purchasing power context
New Mexico's below-average costs provide solid purchasing power for middle-income earners.
Purchasing Power Reality
What your salary feels like in other cities
Salary reality examples
Comfortable in Albuquerque. Housing is well below the national average.
Strong purchasing power statewide.
Excellent flexibility. New Mexico's low costs allow meaningful savings.
FAQ — Income Reality in New Mexico
Is New Mexico affordable?
Yes. New Mexico has a cost of living index of 90, about 10% below the national average.
What is New Mexico's income tax rate?
New Mexico has a top income tax rate of 5.9%.
Cities in New Mexico
Related tools
Cost of Living Index from C2ER. This is a picture, not a verdict.