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Old 01-01-2012, 12:00 AM
 
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Are there any advantages in living in NM than TX as far as taxes go?
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Old 01-01-2012, 08:27 AM
 
Location: Abu Al-Qurq
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None.

NM has a state income tax, TX does not.
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Old 01-01-2012, 08:30 AM
 
Location: On the sunny side of a mountain
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Our property taxes in Houston were 4x our property taxes in Santa fe for a house that was half the price.
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Old 01-01-2012, 09:05 AM
 
Location: Bernalillo, NM
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Check out The Tax Tale: 50-state comparison - JSOnline. It's a little dated (from April 2010) but should still reflect fairly well the relative tax burden in each state.
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Old 01-02-2012, 02:00 AM
 
Location: Sequim, WA
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It really depends on your individual situation. For example, if you plan to buy a $1 million home, you'll pay a much higher property tax bill in Texas than New Mexico. If you plan to rent but have a high income, you'll pay far more state income tax in New Mexico than Texas (as Texas has no state income tax). If you are really thinking about the overall cost of living, you need to look at other taxes, as well as cost of utilities and insurance. I believe homeowner insurance in New Mexico is generally a lot less costly than in Texas...especially if you're in reach of hurricanes.

I think what you're really trying to decide is which state has a lower cost of living. But you also need to consider a "city to city" comparison as there is a wide range in both states. And...my recommendation would be to make a spreadsheet with all the "major players" you can think of, not just taxes.
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Old 01-02-2012, 03:06 PM
 
Location: Texas
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Quote:
Originally Posted by gjtolbert View Post
Are there any advantages in living in NM than TX as far as taxes go?
As a property owner in both states, I can tell you that taxes in Texas are several multiples of what they are in NM. True, NM has an income tax that levels things somewhat. But there's NO advantage to Texas. Keep in miond that the state of Texas is in horrible financial condition and you can maybe get an idea of how those taxes will go in the next few years.

BTW, my NM property is the more expensive of the two.
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Old 01-04-2012, 05:44 AM
 
Location: Albuquerque, NM
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Quote:
Originally Posted by Old Gringo View Post
As a property owner in both states, I can tell you that taxes in Texas are several multiples of what they are in NM. True, NM has an income tax that levels things somewhat. But there's NO advantage to Texas. Keep in miond that the state of Texas is in horrible financial condition and you can maybe get an idea of how those taxes will go in the next few years.

BTW, my NM property is the more expensive of the two.
Very true about the property taxes Old Gringo. We just moved from Austin and are renting out our house down there. After four months rent, we will finally have paid the property taxes.

Also, Austin has an 8.25% sales tax--much higher than ABQ.
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Old 10-02-2013, 04:04 PM
 
Location: Okinawa, Japan
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Texas has a 8.25% Sales Tax, vs about 7% for Albuquerque(really gross receipts but it has the same effect on the consumer). Yes, there is a income tax in NM but it goes up to about 4.7% or so. NM also has zero turnpikes and most state user fees are relatively low. There is no state inspection for cars in NM vs a state inspection for TX. The property taxes in NM are some of the lowest in the nation, vs TX being high due to not having a state income tax. Not sure how corporate taxes work in Tx, but I know in NM the highest bracket is 7.6% over 1 million dollars.

One more thing..utilities in Texas are much higher since the climate is much hotter in general. I only use my AC for about 4 months out of the year in ABQ, 4-5 months for heat and the remainder I don't use any heating or cooling.
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Old 10-02-2013, 04:16 PM
 
Location: Old Town
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Originally Posted by paleo99 View Post
Not sure how corporate taxes work in Tx, but I know in NM the highest bracket is 7.6% over 1 million dollars.
The corporate tax rate was cut to 4.9% (IIRC) during the last legislative session.
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Old 10-02-2013, 05:23 PM
 
Location: Near the hometowns of Buddy and Waylon.
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I have a city home at Albuquerque and a small Texas South Plains farm. The city home is worth about 5.25X what the Texas farm is worth. We have no ag exemptions on the farm because we have no ag production. My wife and I also have taxable income in both states. I have to say New Mexico beats Texas hands down on taxes simply because of the extremely high Texas property taxes. However, tax rates in Texas can vary considerably across counties since it is the counties that set the largest portion of their rate structures.

I'm told utilities tend to be higher in Texas but I only have a NM city home vs a TX rural home to compare.

Another consideration living rurally may also be considered. Our rural groundwater in Texas belongs to us thus there are no monthly charges, I believe in New Mexico, groundwater is public owned and has to be paid for by the landowner. Someone might want to correct me on NM rural water rights.
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