Median one-bedroom rent across the cities we track is $1,688 in California versus $889 in New Mexico. Overall, New Mexico runs roughly 47% cheaper on rent than California, its main day-to-day cost driver.
Median household income across tracked cities is $83,969 in California and $65,604 in New Mexico — about 22% higher in California. California has a top state income tax rate of 13.30% and a 7.25% state sales tax; New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.
State Taxes
Housing (median across tracked cities)
Income (median across tracked cities)
Climate (median across tracked cities)
California vs New Mexico — FAQ
- Is it cheaper to live in California or New Mexico?
- New Mexico is cheaper on rent — its median one-bedroom of $889 runs about 47% below California's $1,688, based on the cities we track in each state.
- How much more do you need to earn to live in California than in New Mexico?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $68,000 a year in California versus $36,000 in New Mexico.
- Which has lower taxes, California or New Mexico?
- California has a top state income tax rate of 13.30% and a 7.25% state sales tax. New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.
Housing, income, and climate are medians across the 9/1 cities we track in California/New Mexico — not population-weighted statewide figures. Taxes are exact state-level rates. Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026.