According to Kiplinger (hat tip to Albuquerque Business First), only one state — California — is a worse place to retire than New Mexico.
In a new analysis, the business and finance publisher warns, “When it comes to taxes, the Land of Enchantment presents a lackluster reality to its retired residents.”
The gross receipts tax was singled out as a villain. The rate for New Mexico’s peculiar form of sales taxation is 8 percent or higher in some locales, and is obviously a deterrent for cost-conscious senior citizens.
Kiplinger’s conclusion: “If you’re eyeing the Southwest for its sunny climate and multicultural vibe, check out Arizona, one of our 10 most tax-friendly states for retirees, instead. The Grand Canyon State does not tax Social Security benefits … and its top income tax rate of 4.54% is lower than New Mexico’s 4.9%.”