Compare taxes and see how much you save moving from New Mexico to Texas
Texas wins decisively on income tax — its constitutional ban on state income tax saves residents $4,418/year on a $100,000 salary compared to New Mexico’s progressive 1.7–5.9% rates. However, New Mexico’s property tax rate (0.67%) is dramatically lower than Texas’s (1.60%), saving homeowners $3,720/year on a $400,000 home. For wage earners and renters, Texas is significantly cheaper. For retirees with fixed incomes and high home equity, New Mexico’s property tax advantage partially offsets the income tax difference.
Progressive
4 brackets; top 5.9% on income above $210,000 (single)
No Income Tax
Constitutional prohibition on state income tax
At $100,000 income:
That is $368/month back in your pocket!
| Income | NM Tax | TX Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $1,893 | $0 | $1,893 | $18,930 |
| $75,000 | $3,118 | $0 | $3,118 | $31,180 |
| $100,000 | $4,418 | $0 | $4,418 | $44,180 |
| $150,000 | $7,383 | $0 | $7,383 | $73,830 |
| $250,000 | $13,543 | $0 | $13,543 | $135,430 |
| $500,000 | $28,043 | $0 | $28,043 | $280,430 |
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Talk to a CPA About Your State Move →Yes, on earned income alone. New Mexico imposes progressive rates from 1.7% to 5.9%, resulting in approximately $4,418 state income tax on a $100,000 single-filer salary. Texas has no state income tax. However, Texas’s property tax rate (1.60%) vs New Mexico’s (0.67%) means Texas homeowners pay $3,720 more per year on a $400,000 home. If you own an expensive home in Texas, the property tax can erase a large portion of the income tax savings.
New Mexico uses a Gross Receipts Tax (GRT) instead of a traditional sales tax. The combined state and local GRT ranges from 7.5% to 9.3% depending on municipality. Unlike most states’ sales taxes, the GRT applies to a broader range of transactions including many services, making it a heavier tax burden in practice. Texas’s state sales tax is capped at 8.25%. For most consumers, GRT and sales tax feel similar, but New Mexico’s GRT can hit more categories of spending.
New Mexico has a meaningful retirement advantage for lower-income retirees: Social Security is fully exempt for single filers earning under $100,000 and joint filers under $150,000. Texas has no income tax at all, which also means zero tax on retirement income. Texas wins for high-income retirees. However, New Mexico’s much lower property tax (0.67% vs 1.60%) can save retirees $3,720+/year on a $400k home, which matters on a fixed income. Choose Texas for high retirement income; consider NM for low-income retirees with valuable property.
Yes, significant migration flows from New Mexico to Texas, primarily driven by Texas’s zero income tax, larger job market (Austin, Dallas, Houston), and higher wages. El Paso sits on the NM/TX border, making it a common relocation corridor. In recent years, Albuquerque to Austin and Albuquerque to San Antonio have been common migration paths. However, some Texans move to New Mexico for lower property taxes and a quieter lifestyle, particularly retirees settling in Santa Fe and Taos.