Texas vs New Mexico Taxes: Income, Property & Sales

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

Texas vs New Mexico Income Tax Comparison

	Texas	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	$74,640	$56,420
Income Tax Paid On Median Household Income	$9,189	$7,031
Income After Tax Based on Median Household Income	$65,451	$49,389

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Texas vs New Mexico Property Tax Comparison

	Texas	New Mexico
Average Property Tax Rate	1.25%	0.60%
Average House Price By State	$305,497	$293,766
Average Property Tax Owed Per Year	$3,819	$1,763
Income After Income Taxes & Property Taxes Based On Median State Household Income	$61,632	$47,626

Texas vs New Mexico Sales Tax Comparison

	Texas	New Mexico
Average State Sales Tax	6.25%	5.13%
Average Local Sales Tax Across the State	1.95%	2.71%
Average Combined Sales Tax Rate	8.20%	7.84%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,671	$3,462
Maximum Disposable Income Based on Median Household Income	$56,961	$44,164

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

	Texas	New Mexico
Income Tax Owed	$3,040	$4,086
After Tax Income	$36,960	$35,914
Income After Income & Property Tax	$33,141	$34,151
Maximum Disposable Income After Income, Property & Sales Taxes	$30,630	$31,669

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

	Texas	New Mexico
Income Tax Owed	$5,968	$7,994
After Tax Income	$54,032	$52,006
Income After Income & Property Tax	$50,213	$50,243
Maximum Disposable Income After Income, Property & Sales Taxes	$46,408	$46,591

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

	Texas	New Mexico
Income Tax Owed	$10,368	$13,374
After Tax Income	$69,632	$66,626
Income After Income & Property Tax	$65,813	$64,863
Maximum Disposable Income After Income, Property & Sales Taxes	$60,826	$60,148

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

	Texas	New Mexico
Income Tax Owed	$14,768	$18,754
After Tax Income	$85,232	$81,246
Income After Income & Property Tax	$81,413	$79,483
Maximum Disposable Income After Income, Property & Sales Taxes	$75,243	$73,705

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

	Texas	New Mexico
Income Tax Owed	$8,481	$11,704
After Tax Income	$91,519	$88,296
Income After Income & Property Tax	$87,700	$86,533
Maximum Disposable Income After Income, Property & Sales Taxes	$81,054	$80,242

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

	Texas	New Mexico
Income Tax Owed	$18,536	$24,209
After Tax Income	$131,464	$125,791
Income After Income & Property Tax	$127,645	$124,028
Maximum Disposable Income After Income, Property & Sales Taxes	$117,972	$115,012

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

	Texas	New Mexico
Income Tax Owed	$29,536	$37,659
After Tax Income	$170,464	$162,341
Income After Income & Property Tax	$166,645	$160,578
Maximum Disposable Income After Income, Property & Sales Taxes	$154,016	$148,904

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

	Texas	New Mexico
Income Tax Owed	$41,455	$52,028
After Tax Income	$208,545	$197,972
Income After Income & Property Tax	$204,726	$196,209
Maximum Disposable Income After Income, Property & Sales Taxes	$189,211	$181,945

FAQ

Does Texas or New Mexico have lower income taxes?

Texas’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 Texas or New Mexico have lower property taxes?

Texas has an average property tax rate of 1.25%

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

Does Texas or New Mexico have lower sales taxes?

Texas has a state sales tax rate of 6.25% and an average local rate of 1.95% for a combined total rate of 8.20%.

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 Texas or New Mexico?

Based on median household income after income, property and sales taxes Texas gives you a maximum amount of disposable income of $56,961

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

More Comparisons:

Texas vs Nebraska
Texas vs Idaho
Texas vs West Virginia
Texas vs Hawaii
Texas 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/