Property Taxes in New Mexico
New Mexico's effective property tax rate is 0.61%, ranking #17 out of 50 states (1 = lowest). The median annual property tax paid is $1,557.
New Mexico property tax rates are below the national average, with the state imposing a constitutional limit of 20 mills ($20 per $1,000 of assessed value) on non-school operating levies. Residential property is assessed at one-third of market value, which reduces the effective rate further. A head-of-household exemption reduces assessed value by $2,000, and veterans and disabled persons qualify for additional exemptions. The combination of low property taxes and no transfer tax makes New Mexico's ongoing ownership costs very manageable.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Tax Foundation, U.S. Census
Tax Rate
0.61%
Median Annual Tax
$1,557
National Rank
#17 of 50
1 = lowest
Homestead Exemption
Yes
Annual Property Tax by Home Price
| Home Price | Annual Tax | Monthly |
|---|---|---|
| $200,000 | $1,220 | $102 |
| $300,000 | $1,830 | $153 |
| $400,000 | $2,440 | $203 |
| $500,000 | $3,050 | $254 |
| $750,000 | $4,575 | $381 |
* Based on the average effective rate of 0.61%. Actual rates vary by county and municipality.
Homestead Exemption in New Mexico
Up to $60,000
File for the homestead exemption after purchasing your primary residence in New Mexico to reduce your assessed property value, lowering your annual tax bill. Contact your county assessor's office for the application.
How New Mexico Compares
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