Overview of New Mexico Taxes
New Mexico has some of the lowest property tax rates in the U.S. While the state’s effective property tax rate is 0.74%, the median annual property tax paid by homeowners in New Mexico is $1,588, nearly $1,500 less than the national median.
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To calculate the exact amount of property tax you will owe requires your property's assessed value and the property tax rates based on your property's address. Please note that we can only estimate your property tax based on median property taxes in your area. There are typically multiple rates in a given area, because your state, county, local schools and emergency responders each receive funding partly through these taxes. In our calculator, we take your home value and multiply that by your county's effective property tax rate. This is equal to the median property tax paid as a percentage of the median home value in your county.
New Mexico Property Taxes
If you’re thinking about buying a home in this state, also known as the Land of Enchantment, there’s good news: New Mexico has among the lowest property taxes of any state in the U.S. The median annual property tax paid by homeowners in New Mexico is $1,588 – 17th lowest across the United States. Likewise, the state’s average effective property tax rate of 0.74% is also below the nationwide average (0.90).
One reason property taxes in New Mexico are so low is that the state has capped the amount the taxable value of a property can increase in a year at 3%. That means that even when home prices are surging, property taxes will remain stable.
Our New Mexico mortgage guide will help make the home buying process a bit easier by providing you with the key information you’ll want to be familiar with before getting a mortgage there.
A financial advisor can help you understand how homeownership fits into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
How Do New Mexico Property Taxes Work?
In New Mexico, taxes on real estate are entirely used to support local governments and services. Nearly half of property tax revenue goes to county and city governments and about 30% goes to schools. Other recipients are hospitals and community colleges.
Taxes are based on the market value of property, which an assessor in each county calculates annually. Taxes in one year are based on the prior year’s market value, so your 2025 taxes will be based on the 2024 value of your home.
The taxable value of residential real estate in New Mexico is equal to one-third of the appraised value. This means that if your home’s market value is $180,000, the taxable value will be $60,000 minus any exemptions. The most commonly claimed exemption is the "head of family" exemption, which reduces taxable value by $2,000 for any homeowner who provides the majority of financial support for his or her household.
One big way that New Mexico limits property tax increases is through a valuation cap. The valuation cap limits annual increases in appraised value to 3%. Thus, if your home value was $200,000 last year, it can’t be any more than $206,000 this year. The cap is lifted when a home is sold or when improvements are made to a home.
New Mexico Property Tax Rates
Tax rates in New Mexico are expressed in terms of mills, which are equal to $1 of tax for $1,000 of taxable value. For example, if your taxable value after exemptions is $40,000 and your mill rate is 20 mills (i.e. $0.020), your taxes owed will be $800. Rates differ between cities, counties, school districts and special districts.
It’s difficult to compare property taxes across areas that all use different rates. For that reason, we use effective tax rates for comparisons. An effective tax rate reflects the annual amount paid as a percentage of current home value. The table below shows the average effective tax rate for every county in New Mexico, as well as the median home value and the median annual property tax paid.
Calculate your potential monthly mortgage payment with our mortgage calculator.
Bernalillo County
As home to the city of Albuquerque, Bernalillo County is New Mexico's most populous. Bernalillo County also has among the highest property tax rates in the state. The county’s effective property tax rate is 0.99%, second-highest across New Mexico. While the median home value in Bernalillo County is $247,300, the median property tax bill is $2,459 per year.
If you have questions about how property taxes can affect your overall financial plans, a financial advisor in Albuquerque can help you out.
Doña Ana County
This southern New Mexico county has property taxes that are slightly lower than the state average. The median annual property tax payment in the county is $1,350. That is about $200 less than the state median and about $1,700 less than the national median. The largest city in Doña Ana County is Las Cruces, which is the second largest city in the state.
Santa Fe County
Santa Fe County may be a good choice for you if you’re looking for low property taxes in New Mexico. The county’s effective property tax rate is just 0.51%, which ranks as the 13th lowest in the state. At that rate, the annual taxes on a home worth $374,200 (the median home value) would be $1,921.
Sandoval County
Situated north of Bernalillo County and the city of Albuquerque, Sandoval County has the third-highest effective property tax rate in New Mexico (0.79%). The median home value in Sandoval County is $258,100, meaning the typical homeowner pays $2,042 per year in property taxes.
San Juan County
The fifth-largest county in New Mexico by population, San Juan County is part of the “four corners” region where Colorado, Arizona, Utah and New Mexico all come together.
Property taxes in San Juan County are quite low compared to the national average. The county’s effective property tax rate is just 0.69%, while the median property tax bill is $1,185.
Valencia County
Valencia County is located south of Albuquerque and has relatively low property tax rates compared to other counties the greater Albuquerque area. The effective property tax rate in Valencia County is 0.70%. That compares favorably to the effective rates in Bernalillo (0.99%) and Sandoval (0.79%) counties.
McKinley County
Situated along the Arizona state border in western New Mexico, McKinley County has the highest property tax rates of any county in New Mexico by far. More specifically, it's the only one of two counties in the state with an effective property tax rate that is higher than the national average. The effective rate in the county is 1.91%, although the median tax bill is only $1,339.
Lea County
The median property tax paid by homeowners in Lea County is just $756 per year. That is less than half of the state median, and around one-quarter of the national median. Part of the reason taxes are so low is that the tax base is also relatively low. The median home value in Lea County is $162,000, meaning the effective rate is just 0.47%, which is the sixth-lowest rate in New Mexico.
Chaves County
Chaves County, home to Roswell, is a largely rural county in southeast New Mexico. The effective rate here is 0.60% and the median tax payment is $804.
Otero County
Situated along the Texas border in southern New Mexico, Otero County has property tax rates that are well below the state average. The county’s average effective rate is just 0.57%. That rate is also far lower than neighboring El Paso County, Texas, where the rate is 2.14%.
