Median one-bedroom rent across the cities we track is $889 in New Mexico versus $1,170 in Texas. Overall, New Mexico runs roughly 24% cheaper on rent than Texas, its main day-to-day cost driver.
Median household income across tracked cities is $65,604 in New Mexico and $67,043 in Texas — about 2% higher in Texas. New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax; Texas has no state income tax and a 6.25% state sales tax.
State Taxes
Sales Tax
4.875%
6.25%
+1.4 pp in Texas
Income Tax (top rate)
5.90%
None
+5.9 pp in New Mexico
Housing (median across tracked cities)
Median 1BR Rent
$889
$1,170
+32% in Texas
Median Home Value
$266,700
$264,900
+1% in New Mexico
Income (median across tracked cities)
Median Household Income
$65,604
$67,043
+2% in Texas
Climate (median across tracked cities)
Avg Annual Temperature
57.2°F
67.2°F
+10.0°F in Texas
New Mexico vs Texas — FAQ
- Is it cheaper to live in New Mexico or Texas?
- New Mexico is cheaper on rent — its median one-bedroom of $889 runs about 24% below Texas's $1,170, based on the cities we track in each state.
- How much more do you need to earn to live in New Mexico than in Texas?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $36,000 a year in New Mexico versus $47,000 in Texas.
- Which has lower taxes, New Mexico or Texas?
- New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax. Texas has no state income tax and a 6.25% state sales tax.
Housing, income, and climate are medians across the 1/8 cities we track in New Mexico/Texas — 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.