Cost of Living in New Mexico (NM)
Compare costs across 2 New Mexico cities. From home services to salaries, see how NM stacks up against the national average.
2
Cities
103
Avg Cost Index
$55K
Avg Income
Direct Answer
New Mexico's average cost index is 103, which is near the national baseline of 100. Albuquerque is the most affordable tracked city in NM at index 93, while Santa Fe is the most expensive at index 112.
The gap between the cheapest and most expensive tracked cities is 19 index points, so state-level averages should be used as a map, not a final budget.
State cost overviewBLS, Census, HUD inputsLast verified May 2026
New Mexico Highlights: Most affordable city: Albuquerque (index 93). Most expensive: Santa Fe (index 112). The gap between cheapest and most expensive is 19 index points.
What Drives the Statewide Cost Picture?
Average index
103/100
New Mexico is near the national cost baseline across tracked cities.
Cheapest city
Albuquerque
Albuquerque has a cost index of 93.
Most expensive
Santa Fe
Santa Fe has a cost index of 112.
Income average
$55K
Average median household income across 2 tracked NM cities.
Cheapest and Most Expensive Cities in New Mexico
| City | Population | Cost Index | Median Income | Tier |
|---|---|---|---|---|
| Albuquerque | 565K | 93 | $53K | mid |
| Santa Fe | 88K | 112 | $57K | small |
New Mexico State Taxes (2026)
Headline tax rates that affect your real take-home pay and total cost of living in New Mexico.
State Income Tax
1.7-5.9%
progressive system
Combined Sales Tax
7.56%
4.875% state + 2.69% avg local
Property Tax (Effective)
0.67%
~$2,010/yr on a $300K home
Income tax: New Mexico uses a progressive income tax at 1.7-5.9%. No state estate tax. Estimate your take-home pay
State Planning Checklist
- Start with Albuquerque if the priority is lowest recurring cost inside New Mexico.
- Compare Santa Fe against salary and tax advantages before assuming the higher-cost city is worse.
- Use city pages for rent, salary, insurance, and local service costs before making a relocation decision.