Tennessee vs New Mexico Taxes: Income, Property & Sales

Does Tennessee or New Mexico have lower taxes? We answer that in a variety of ways below:

Tennessee vs New Mexico Income Tax Comparison

	Tennessee	New Mexico
Income Tax Rates & Thresholds	None	1.70%: $0-$5,500 3.20%: $5,501-$11,000 4.70%: $11,001-$16,000 4.90%: $16,001-$210,000 5.90%: $210,001+
Median Income	$65,380	$56,420
Income Tax Paid On Median Household Income	$7,151	$7,031
Income After Tax Based on Median Household Income	$58,229	$49,389

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Tennessee vs New Mexico Property Tax Comparison

	Tennessee	New Mexico
Average Property Tax Rate	0.42%	0.60%
Average House Price By State	$310,782	$293,766
Average Property Tax Owed Per Year	$1,305	$1,763
Income After Income Taxes & Property Taxes Based On Median State Household Income	$56,924	$47,626

Tennessee vs New Mexico Sales Tax Comparison

	Tennessee	New Mexico
Average State Sales Tax	7.00%	5.13%
Average Local Sales Tax Across the State	2.55%	2.71%
Average Combined Sales Tax Rate	9.55%	7.84%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,962	$3,462
Maximum Disposable Income Based on Median Household Income	$51,961	$44,164

After Tax Comparison Earning $40,000 Per Year Filing As Single

	Tennessee	New Mexico
Income Tax Owed	$3,040	$4,086
After Tax Income	$36,960	$35,914
Income After Income & Property Tax	$35,655	$34,151
Maximum Disposable Income After Income, Property & Sales Taxes	$32,547	$31,669

After Tax Comparison Earning $60,000 Per Year Filing As Single

	Tennessee	New Mexico
Income Tax Owed	$5,968	$7,994
After Tax Income	$54,032	$52,006
Income After Income & Property Tax	$52,727	$50,243
Maximum Disposable Income After Income, Property & Sales Taxes	$48,130	$46,591

After Tax Comparison Earning $80,000 Per Year Filing As Single

	Tennessee	New Mexico
Income Tax Owed	$10,368	$13,374
After Tax Income	$69,632	$66,626
Income After Income & Property Tax	$68,327	$64,863
Maximum Disposable Income After Income, Property & Sales Taxes	$62,370	$60,148

After Tax Comparison Earning $100,000 Per Year Filing As Single

	Tennessee	New Mexico
Income Tax Owed	$14,768	$18,754
After Tax Income	$85,232	$81,246
Income After Income & Property Tax	$83,927	$79,483
Maximum Disposable Income After Income, Property & Sales Taxes	$76,610	$73,705

After Tax Comparison Earning $100,000 Per Year Filing As Married Filing Jointly

	Tennessee	New Mexico
Income Tax Owed	$8,481	$11,704
After Tax Income	$91,519	$88,296
Income After Income & Property Tax	$90,214	$86,533
Maximum Disposable Income After Income, Property & Sales Taxes	$82,349	$80,242

After Tax Comparison Earning $150,000 Per Year Filing As Married Filing Jointly

	Tennessee	New Mexico
Income Tax Owed	$18,536	$24,209
After Tax Income	$131,464	$125,791
Income After Income & Property Tax	$130,159	$124,028
Maximum Disposable Income After Income, Property & Sales Taxes	$118,812	$115,012

After Tax Comparison Earning $200,000 Per Year Filing As Married Filing Jointly

	Tennessee	New Mexico
Income Tax Owed	$29,536	$37,659
After Tax Income	$170,464	$162,341
Income After Income & Property Tax	$169,159	$160,578
Maximum Disposable Income After Income, Property & Sales Taxes	$154,412	$148,904

After Tax Comparison Earning $250,000 Per Year Filing As Married Filing Jointly

	Tennessee	New Mexico
Income Tax Owed	$41,455	$52,028
After Tax Income	$208,545	$197,972
Income After Income & Property Tax	$207,240	$196,209
Maximum Disposable Income After Income, Property & Sales Taxes	$189,174	$181,945

FAQ

Does Tennessee or New Mexico have lower income taxes?

Tennessee’s income tax falls into the following range: None

Whereas New Mexico’s income tax is the following

• 1.70%: $0-$5,500
• 3.20%: $5,501-$11,000
• 4.70%: $11,001-$16,000
• 4.90%: $16,001-$210,000
• 5.90%: $210,001+

Does Tennessee or New Mexico have lower property taxes?

Tennessee has an average property tax rate of 0.42%

In comparison, New Mexico has an average property tax rate of 0.60%

Does Tennessee or New Mexico have lower sales taxes?

Tennessee has a state sales tax rate of 7.00% and an average local rate of 2.55% for a combined total rate of 9.55%.

In contrast, New Mexico has a state sales tax rate of 5.13% and an average local rate of 2.71% for a combined total rate of 7.84%.

Do you get to keep more money in Tennessee or New Mexico?

Based on median household income after income, property and sales taxes Tennessee gives you a maximum amount of disposable income of $51,961

In comparison, New Mexico gives you $44,164.

More Comparisons:

Tennessee vs Nebraska
Tennessee vs Idaho
Tennessee vs West Virginia
Tennessee vs Hawaii
Tennessee vs New Hampshire

Sources:

https://en.wikipedia.org/wiki/State_income_tax#Rates_by_jurisdiction

https://www.bankrate.com/real-estate/property-tax-by-state/#by-state

https://fred.stlouisfed.org/release/tables?eid=259515&rid=249

https://www.fool.com/the-ascent/research/average-house-price-state/

https://taxfoundation.org/data/all/state/2022-sales-taxes/

https://www.forbes.com/advisor/income-tax-calculator/