Cost of Living in New Mexico
Based on 3 cities we track in New Mexico.
Cost of living in New Mexico is shaped mostly by rent across the 3 cities we track there. A one-bedroom apartment runs around $889 a month — 15% lower than the $1,052 median across the 51 states we track.
Median household income across those cities is $65,604, about the same as the $67,043 median across the states we track. New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.
State Medians
Median 1BR Rent
$889
Median Home Value
$266,700
Median Income
$65,604
Avg Temperature
57.2°F
Medians across the New Mexico cities we track — not a statewide population-weighted figure.
State Taxes
State Sales Tax
4.875%
State Income Tax (top rate)
Up to 5.90%
Cities in New Mexico
Compare New Mexico with
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New Mexico cost of living — FAQ
- Is New Mexico expensive to live in?
- New Mexico is around the middle of the 51 states we track. Its median one-bedroom rent of $889 ranks #34 of 51 and is 15% lower than the $1,052 median.
- What is the average rent in New Mexico?
- Across the 3 cities we track in New Mexico, average rent runs a studio around $797, a one-bedroom around $889, a two-bedroom around $1,140, a three-bedroom around $1,459 per month (US Census ACS).
- What is the median home price in New Mexico?
- The median home value across the cities we track in New Mexico is $266,700 — 7% lower than the $287,500 median across the states we track.
- Does New Mexico have a state income tax?
- Yes — New Mexico's top state income tax rate is 5.90% (most filers pay less than the top rate). Its state sales tax rate is 4.875%; local jurisdictions may add more.
- How much do you need to earn to live in New Mexico?
- To keep a one-bedroom rent of $889 near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year. Median household income across the cities we track in New Mexico is $65,604.
Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026 (state taxes).