Arizona vs New Mexico
Property‑Tax Comparison: Arizona vs. New Mexico
Intro
Both Arizona and New Mexico levy property taxes that are collected by local governments and used to fund schools, roads, and other public services. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Arizona’s effective property‑tax rate is lower than New Mexico’s, which results in smaller annual tax bills for comparable home values. The table below places the key metrics for each state side by side.
Side‑by‑Side Metrics
| Metric (2023 ACS) | Arizona | New Mexico |
|---|---|---|
| Effective property‑tax rate | 0.52 % | 0.72 % |
| Median home value | $358,900 | $232,200 |
| Median annual property tax | $1,858 | $1,669 |
| Property tax on a $250,000 home | $1,294 | $1,797 |
| Property tax on a $500,000 home | $2,589 | $3,594 |
| Median household income | $76,872 | $62,125 |
| Internal link | Arizona property tax | New Mexico property tax |
All figures are taken from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Which State “Wins” on Property Taxes?
- Winner (lower tax rate): Arizona
- Rate difference: 0.20 percentage points, which is a 27.98 % lower effective rate than New Mexico’s.
- Annual tax difference:
- On a $250,000 home, Arizona’s tax is $503 lower ($1,294 vs. $1,797).
- On a $500,000 home, Arizona’s tax is $1,005 lower ($2,589 vs. $3,594).
The lower effective tax rate in Arizona translates directly into smaller yearly property‑tax obligations for owners of homes at any price point.
Who May Benefit Most from This Comparison?
| Audience | Relevance of the Data |
|---|---|
| Current or prospective homeowners | The table shows the expected yearly tax burden for typical home values in each state, allowing buyers to factor property taxes into total housing costs. |
| Retirees or fixed‑income households | Lower property‑tax rates can reduce ongoing expenses, which is especially important for budgets that rely on limited income. |
| Real‑estate investors | Understanding the tax differential helps assess the long‑term cost of holding property in either state. |
| Policy analysts or researchers | The side‑by‑side ACS data provide a baseline for comparing fiscal policy outcomes across state lines. |
All groups can use the effective tax‑rate figures and the calculated tax amounts to evaluate how property taxes might affect their financial planning.
Summary
Based on the most recent ACS estimates, Arizona’s effective property‑tax rate of 0.52 % is lower than New Mexico’s 0.72 %. This 0.20‑percentage‑point gap yields annual tax savings of $503 on a $250,000 home and $1,005 on a $500,000 home. While other factors such as overall cost of living, climate, and local services also influence relocation decisions, the data presented here indicate that Arizona imposes a smaller property‑tax burden than New Mexico for comparable housing values.
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Discover how property taxes compare across all states in our comprehensive comparison guide.
Data Source
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates). This comprehensive dataset provides reliable, standardized property tax information across all states.