California vs New Mexico
California
Property Tax Comparison: California vs. New Mexico
Intro
Both California and New Mexico levy property taxes based on the assessed value of real‑estate holdings. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), the two states have very similar effective property tax rates, but they differ markedly in median home values and household incomes. The following sections present a side‑by‑side view of the key metrics, identify which state has the lower tax rate, and outline the types of residents for whom the comparison may be most relevant.
Side‑by‑side comparison
| Metric | California | New Mexico |
|---|---|---|
| Effective property tax rate | 0.71 % | 0.72 % |
| Median home value | $695,400 | $232,200 |
| Median annual property tax | $4,926 | $1,669 |
| Tax on a $250,000 home | $1,771 | $1,797 |
| Tax on a $500,000 home | $3,542 | $3,594 |
| Median household income | $96,334 | $62,125 |
| Link to detailed state page | California property tax | New Mexico property tax |
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which state “wins” on property tax rate?
Winner (lower tax rate): California
- Effective tax‑rate difference: 0.01 percentage point (California 0.71 % vs. New Mexico 0.72 %).
- Relative difference: 0.01 % ÷ 0.71 % ≈ 1.45 % lower in California.
- Annual tax difference on a $250k home: $26 less in California.
- Annual tax difference on a $500k home: $52 less in California.
The lower effective tax rate makes California the winner in this specific comparison, even though the absolute tax amounts are higher in California because of its substantially higher median home values.
Who is this comparison most relevant for?
| Audience | Relevance |
|---|---|
| Current or prospective homeowners | Understanding how the effective tax rate interacts with local home values helps estimate yearly property‑tax costs. |
| Retirees or fixed‑income households | Property‑tax burden relative to household income may influence decisions about where to purchase a primary residence. |
| Real‑estate investors | The tax rate, combined with median home values, affects the cost of holding properties in each state. |
| Policy analysts | The data illustrate how two states with similar rates can generate very different revenue per homeowner because of valuation differences. |
Summary
Based on the most recent ACS estimates, California’s effective property tax rate of 0.71 % is marginally lower than New Mexico’s 0.72 %. The difference translates to a $26–$52 annual saving on typical home values of $250 k and $500 k, respectively. However, the overall tax payment in California remains higher due to the state’s considerably higher median home values and household incomes. Stakeholders such as homeowners, retirees, and investors can use these figures to assess the fiscal impact of purchasing real‑estate in either state.
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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.