New Mexico state taxes (Albuquerque: real estate, insurance, house)

[BJS699]

I like the idea of retiring to New Mexico however the state taxes every source of income. Is the cost of living low enough to off-set this fact? I've read that the state does has low property taxes. I would love to hear from those of you that retired to this beautiful state to see if you are burdened with taxes on a fixed income. I have no problems paying taxes and realize states have get their money somehow, even the non income tax states make up for it in other forms of taxes.

[Poncho_NM]

Major New Mexico Tax Threads out of 30+ Threads:

https://www.city-data.com/forum/new-m...es-nation.html
https://www.city-data.com/forum/albuq...s-reality.html
https://www.city-data.com/forum/albuq...rty-taxes.html
https://www.city-data.com/forum/albuq...ons-about.html
https://www.city-data.com/forum/albuq...rty-taxes.html
https://www.city-data.com/forum/las-c...-you-have.html
https://www.city-data.com/forum/new-m...s-like-nm.html
https://www.city-data.com/forum/albuq...perty-tax.html

My wife and I have now lived in New Mexico continuously for the past 20 years. The longest I have ever stayed in one place. We are now retired. The tax issue was never a problem for us. I suggest you consider all costs of living rather than just one portion.

We have other family members who followed us to New Mexico.

[nmguy]

Originally Posted by BJS699

I like the idea of retiring to New Mexico however the state taxes every source of income. Is the cost of living low enough to off-set this fact?

State taxes are only part of the equation. When real estate, cost of entertainment, eating out, and making major purchases like a new car are factored in, you will immediately feel a sense of relief.

I lived in NM for 11 years, then left for California where nobody talks about state taxes because they don't want to upset their stomach.

Good luck with your journey.

[phydeaux3]

If taxed income was the only consideration, I wouldn't move to New Mexico. But I considered costs of everything as much as I could. I also visited several times so I could get a feel for what daily costs would be like. One visit showed me I'd make out better. Multiple visits proved to me the first time wasn't a fluke. Visiting different times a year showed me it wasn't a seasonal thing. (That last one wasn't really necessary, but in some places around the country there's a big difference.) Factored it all together and it works out that I should about break even, maybe still slightly in NM's favor. Plus I get warmer, less humid weather and mountain views I can only see in pictures around where I am now.

Your case may be different. Only you can decide how the differences will affect you. But NEVER move somewhere sight unseen unless you don't have a choice. Make sure you like what you're potentially getting into, not just be willing to settle.

[Poncho_NM]

Cheapest States To Live In

Rank State Cost Index Grocery Housing Utilities Transportation Misc

1 Mississippi 86.1 91.6 70.1 89.1 89.2 91.4
2 Arkansas 86.9 92 73.9 91.8 83.6 85.6
3 Oklahoma 87 95.4 71.9 94.1 89.5 93.2
4 Missouri 87.1 96.6 70.6 99.6 87.3 95.7
5 New Mexico 87.5 100.9 77.7 87.9 91.6 100.1
6 Tennessee 88.7 93.3 80.2 93.4 89.7 88.5
7 Michigan 88.9 89.3 75.2 97.3 97.4 93
8 Kansas 89 91.9 73.8 103 92.3 98.9
9 Georgia 89.2 96.9 73.8 92.4 97.6 98.5
10 Wyoming 89.3 98.7 72.3 87.3 99.3 94.9

I only listed first 10. There are 51 listed. List and article is at: http://worldpopulationreview.com/sta...es-to-live-in/

[elkotronics]

No. 5 out of 51 ain't bad.

[aries63]

NM state tax is a pittance, I would pay more. Depends on your income, most retirees here don't have enough income to pay tax.

[jiminnm]

I moved here from a state with very high auto insurance rates. I am paying only a little more now than I paid before moving here 20 years ago. Auto registration are also lower than many other states. Like any other state, property taxes vary bu city and county. I live in an unincorporated area of Sandoval county and my property taxes are probably 1/2-2/3 what they would be for the same house value in Albuquerque. Then again, we've lived in this house for 20 years and our annual increase are restrained by law.



New Mexico income tax starts with your federal taxable income and then has some adjustments. All the info is here:
Individuals - NM Taxation and Revenue Department