State Comparison
Arizona vs New Mexico
Side-by-side comparison of 16 financial metrics using documented public datasets and estimates, with sources listed below.
Overall Score
Cost of Living
Housing
Taxes
Income & Employment
Business
Insurance & Living
Key Takeaways
- 1
Arizona leads in 7 of 16 financial metrics, making it the more favorable state overall.
- 2
Housing: Median home prices are $423,000 in Arizona vs $321,000 in New Mexico — a $102,000 difference.
- 3
Taxes: Arizona has a 2.5% top income tax rate while New Mexico has a 5.9% top rate. Property tax rates are 0.48% vs 0.63%.
- 4
Cost of Living: Arizona's index is 102.2 and New Mexico's is 94.6 (national average = 100).
Run the Numbers
Use our free calculators with real Arizona and New Mexico data to model your specific scenario.
Frequently Asked Questions
Is Arizona or New Mexico more affordable?
New Mexico has a lower cost of living index (94.6) compared to Arizona (102.2), where 100 is the national average. However, affordability depends on your specific situation — compare housing, taxes, and income together for a complete picture.
Which state has lower taxes — Arizona or New Mexico?
Overall, Arizona has a lower combined tax burden. Arizona has a 2.5% top income tax, 5.6% sales tax, and 0.48% property tax. New Mexico has a 5.9% top income tax, 4.875% sales tax, and 0.63% property tax.
What are housing costs in Arizona vs New Mexico?
The median home price in Arizona is $423,000 compared to $321,000 in New Mexico. For renters, a 2-bedroom apartment averages $1,709/month in Arizona vs $1,308/month in New Mexico.
Which state is better for starting a business — Arizona or New Mexico?
LLC filing costs are $50 in Arizona vs $50 in New Mexico, with annual fees of $0 and $0 respectively. Arizona's 2.5% top tax rate compared to New Mexico's 5.9% rate may also factor into your decision.
Should I move from Arizona to New Mexico?
It depends on your priorities. Arizona wins in 7 of 16 metrics we compared. Use our free calculators to model your specific financial scenario — including salary, property tax, and cost of living for each state.
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Related Comparisons
Comparing Arizona and New Mexico
When deciding between living in Arizona or New Mexico, the financial picture goes beyond just one metric. This comparison analyzes 16 key financial indicators sourced from the U.S. Census Bureau, Tax Foundation, HUD Fair Market Rent data, and Bureau of Labor Statistics to give you a comprehensive overview.
Arizona (AZ) has a median household income of $72,581 with a cost of living index of 102.2. New Mexico (NM) has a median household income of $54,020 with a cost of living index of 94.6.
These numbers are estimates. Individual circumstances vary based on location within each state, family size, profession, and lifestyle. Use our free Arizona calculator or New Mexico calculator to model your specific financial scenario.
Inputs include Census Bureau ACS, Tax Foundation, HUD FMR, and BLS data. Last reviewed January 2026. Some values are estimates; consult a qualified professional for financial advice.