New Mexico Property Tax

Effective Property Tax Rate

71.88%

Median Annual Tax

$1,669

Median Home Value

$232,200

Property Tax Overview in New Mexico (2026)

This article summarizes property‑tax data for New Mexico using the U.S. Census Bureau’s American Community Survey (ACS) 5‑year estimates for 2023.

Key Statistics

Metric	Value (2023 ACS)
Median home value	$232,200
Average effective property tax rate	0.72 %
Median annual property tax payment	$1,669

Effective property tax rate = (annual property tax ÷ market value of the property) × 100.

New Mexico Property Tax Rate in Practice

Example Calculations

Home value	Approx. annual tax (based on 0.72 % rate)
$250,000	$1,797
$500,000	$3,594

These figures are derived by applying the average effective rate of 0.72 % to the stated property values.

Variation by County

Property tax rates are not uniform across the state. Each of New Mexico’s 33 counties sets its own millage rates, assessment practices, and exemption policies. Consequently, the actual tax bill for a given property may be higher or lower than the statewide average depending on its location.

Comparison to the National Average

National average effective property tax rate (2023 ACS): 0.97 %
New Mexico’s rate: 0.72 %

New Mexico’s effective rate is approximately 25.72 % lower than the national average. In the 2023 ACS ranking, New Mexico placed 19th out of 52 states and territories (including Washington, D.C. and U.S. territories) for the lowest effective property tax rates.

Considerations for Retirees and Landlords

Group	Relevant facts (based on ACS data)
Retirees	The lower effective property tax rate reduces the annual cost of homeownership relative to many other states. However, total living expenses also depend on other taxes (e.g., sales and income taxes) and local service fees.
Landlords	Property‑tax obligations are calculated on the assessed value of each rental unit. The statewide average rate of 0.72 % can result in lower tax expenses compared with states that have rates near or above the national average, but county‑specific rates and local exemptions (e.g., for agricultural or historic properties) must be considered.

All statements are factual and derived from the ACS; they do not constitute a recommendation.

Frequently Asked Questions

1. How is the effective property tax rate calculated?
The effective rate equals the annual property tax bill divided by the property's market value, expressed as a percentage. It provides a comparable measure across jurisdictions with different assessment methods.

2. Are there exemptions that can lower the tax bill?
Yes. New Mexico offers exemptions such as the Homeowner’s Homestead Exemption, Senior Citizen Exemption, and exemptions for disabled veterans. Eligibility and exemption amounts vary by county.

3. Where can I find county‑specific tax rates?
County assessor or treasurer websites publish current millage rates and assessment rules. The New Mexico Taxation and Revenue Department also provides links to each county’s tax information.

References

U.S. Census Bureau, American Community Survey (ACS) 5‑year estimates, 2023. Data on median home value, effective property tax rate, and median annual property tax for New Mexico.
U.S. Census Bureau, ACS 5‑year estimates, 2023. National effective property tax rate and state rankings.

All figures reflect the most recent ACS estimates available as of 2023.

Neighboring States