Colorado vs New Mexico
Property Tax Comparison: Colorado vs. New Mexico
Introduction
Both Colorado and New Mexico levy property taxes that fund local services such as schools, roads, and public safety. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Colorado’s effective property tax rate is lower than New Mexico’s, while the median home values and household incomes differ markedly between the two states. The following side‑by‑side table and analysis present the key metrics for each state.
Side‑by‑side Comparison
| Metric (2023 ACS) | Colorado | New Mexico |
|---|---|---|
| Effective property tax rate | 0.49 % | 0.72 % |
| Median home value | $502,200 | $232,200 |
| Median annual property tax | $2,448 | $1,669 |
| Property tax on a $250,000 home | $1,219 | $1,797 |
| Property tax on a $500,000 home | $2,438 | $3,594 |
| Median household income | $92,470 | $62,125 |
Sources: According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which State Has the Lower Property Tax Burden?
Winner (lower effective tax rate): Colorado
- Tax‑rate difference: 0.23 % (Colorado 0.49 % vs. New Mexico 0.72 %). This represents a 32.18 % relative reduction in the effective rate.
- Annual tax difference on a $250,000 home: $578 (Colorado $1,219 vs. New Mexico $1,797).
- Annual tax difference on a $500,000 home: $1,156 (Colorado $2,438 vs. New Mexico $3,594).
The lower effective tax rate in Colorado results in lower property‑tax payments across comparable home values, even though Colorado’s median home price is more than double that of New Mexico.
Who Is Most Affected by This Comparison?
| Audience | Relevance of the Comparison |
|---|---|
| Current homeowners | Homeowners evaluating the ongoing cost of property ownership can compare the tax burden relative to home value and income. |
| Prospective homebuyers | Buyers weighing relocation options can use the effective tax rate and median tax amounts to estimate annual expenses. |
| Retirees and fixed‑income households | Because property taxes represent a recurring expense, a lower effective rate (as in Colorado) may be advantageous, though overall cost of living and home prices must also be considered. |
| Real‑estate investors | Investors assessing cash‑flow projections can factor the differing tax rates into their calculations for each market. |
The data are purely fiscal; other factors such as state income taxes, sales taxes, and cost‑of‑living differences are not addressed here.
Further Reading
- Detailed information on Colorado’s property‑tax structure: Colorado property tax
- Detailed information on New Mexico’s property‑tax structure: New Mexico property tax
Summary
Based on the most recent ACS estimates, Colorado has a lower effective property tax rate (0.49 %) than New Mexico (0.72 %). This results in lower annual property‑tax payments for comparable home values, although Colorado’s median home price and median household income are both higher. The comparison is most useful for homeowners, prospective buyers, retirees, and investors who need to understand the relative tax burden associated with residential property in each state.
Explore More Comparisons
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.