Is it cheaper to live in Salem or Santa Fe?

Salem, OR is cheaper. Its monthly baseline of $1,170 (1BR rent + utilities) runs about 11% below Santa Fe, NM's $1,310, mainly because of rent.

How much more do you need to earn to live in Salem than in Santa Fe?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $40,000 a year in Salem versus $47,000 in Santa Fe.

Which has lower taxes, Salem or Santa Fe?

Salem is taxed under Oregon's rules (a top state income tax rate of 9.90% and no state sales tax); Santa Fe under New Mexico's (a top state income tax rate of 5.90% and a 4.875% state sales tax).

Salem vs Santa Fe Cost of Living 2026

Salem

Oregon

$1,170/mo est.

Santa Fe

New Mexico

$1,310/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,170 in Salem, OR versus $1,310 in Santa Fe, NM. Overall, Salem, OR is roughly 11% cheaper to live in day-to-day than Santa Fe, NM, driven mainly by rent.

Median household income is $71,900 in Salem, OR and $70,110 in Santa Fe, NM — about 2% higher in Salem, OR. Oregon has a top state income tax rate of 9.90% and no state sales tax; New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.

Salem, OR

Santa Fe, NM

Rent

Studio

$1,075

$969

+10% in Salem, OR

1 Bedroom

$989

$1,167

+18% in Santa Fe, NM

2 Bedroom

$1,337

$1,559

+17% in Santa Fe, NM

3 Bedroom

$1,778

$1,733

+3% in Salem, OR

Buying a Home

Median Home Value

$382,400

$411,500

+8% in Santa Fe, NM

Income

Median Household Income

$71,900

$70,110

+2% in Salem, OR

Metro Median Wage (annual)

$55,310

$48,710

+12% in Salem, OR

People & Lifestyle

Median Age

35.7 yr

46.4 yr

+10.7 yr in Santa Fe, NM

Homeownership

55.7%

62.8%

+7.1 pp in Santa Fe, NM

Bachelor's+ (25+)

31.4%

45.4%

+14.0 pp in Santa Fe, NM

Avg Commute

22.4 min

20.2 min

+2.2 min in Salem, OR

Crime (per 100k/yr)

Violent Crime

540.6

843.3

+56% in Santa Fe, NM

Property Crime

2,878.6

5,189

+80% in Santa Fe, NM

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

53.0°F

51.9°F

+1.1°F in Salem, OR

Annual Precipitation

39.7 in

13.5 in

+26.2 in in Salem, OR

Gas

Regular Gasoline

$5.09/gal

$3.62/gal

+29% in Salem, OR

Area: West Coast (PADD 5) vs Gulf Coast (PADD 3).

Utilities

Electricity (¢/kWh)

16.3

14.1

+13% in Salem, OR

Natural Gas ($/MCF)

$20.59

$11.90

+42% in Salem, OR

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.82

about equal

Bread (lb)

$2.04

about equal

Eggs (doz)

$2.19

about equal

Ground Beef (lb)

$7.36

about equal

Chicken (lb)

$2.01

about equal

Bananas (lb)

$0.70

about equal

Average prices — West vs West (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (OR / NM)

None

4.875%

+4.9 pp in NM

Income Tax (top rate)

9.90%

5.90%

+4.0 pp in OR

Salem vs Santa Fe — FAQ

Is it cheaper to live in Salem or Santa Fe?: Salem, OR is cheaper. Its monthly baseline of $1,170 (1BR rent + utilities) runs about 11% below Santa Fe, NM's $1,310, mainly because of rent.
How much more do you need to earn to live in Salem than in Santa Fe?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $40,000 a year in Salem versus $47,000 in Santa Fe.
Which has lower taxes, Salem or Santa Fe?: Salem is taxed under Oregon's rules (a top state income tax rate of 9.90% and no state sales tax); Santa Fe under New Mexico's (a top state income tax rate of 5.90% and a 4.875% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).