The Federation of Tax Administrators has made 2015 state tax burden data available. Although not a surprise to the Rio Grande Foundation, the data show that as a percent of personal income, New Mexico’s tax burden is on par with that of high-tax California.
As if that is not bad enough, New Mexico’s tax burden is 10th in the nation while its next-highest-taxing neighbor (Utah) comes in at just 31st. Despite New Mexico’s heavy tax burdens, policymakers are meeting in Santa Fe right now considering myriad tax hike bills.
3 Replies to “NM’s tax burdens are at California levels: why is Santa Fe even talking about tax hikes?”
We might move to NM. Are there any tax breaks for senior citizens? Thanks.
There is a property tax credit for seniors. Here you go: https://smartasset.com/retirement/new-mexico-retirement-taxes
This is perhaps a bit misleading, since school funding (for operations anyway) in New Mexico is provided by state revenues, while in most states, a large portion of school funding comes from local sources (primarily property taxes). As such, the total tax burden that citizens of New Mexico face is composed of relatively high state taxes, but relatively low local taxes when compared to other states. If you combine both state and local tax burdens, according to WalletHub, New Mexico comes in at 20th place. Although our tax burden is still higher than our neighbors, the difference isn’t nearly as extreme as the table above would indicate.