State Comparison
New Mexico vs Texas
Side-by-side comparison of 16 financial metrics including taxes, housing costs, cost of living, wages, and insurance — powered by verified government data.
Overall Score
Cost of Living
Housing
Taxes
Income & Employment
Business
Insurance & Living
Key Takeaways
- 1
New Mexico leads in 8 of 16 financial metrics, making it the more favorable state overall.
- 2
Housing: Median home prices are $285,000 in New Mexico vs $310,000 in Texas — a $25,000 difference.
- 3
Taxes: New Mexico has a 5.9% top income tax rate while Texas has no income tax. Property tax rates are 0.8% vs 1.8%.
- 4
Cost of Living: New Mexico's index is 94.6 and Texas's is 93.9 (national average = 100).
Run the Numbers
Use our free calculators with real New Mexico and Texas data to model your specific scenario.
Frequently Asked Questions
Is New Mexico or Texas more affordable?
Texas has a lower cost of living index (93.9) compared to New Mexico (94.6), 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 — New Mexico or Texas?
Overall, Texas has a lower combined tax burden. New Mexico has a 5.9% top income tax, 4.875% sales tax, and 0.8% property tax. Texas has no income tax, 6.25% sales tax, and 1.8% property tax.
What are housing costs in New Mexico vs Texas?
The median home price in New Mexico is $285,000 compared to $310,000 in Texas. For renters, a 2-bedroom apartment averages $970/month in New Mexico vs $1,275/month in Texas.
Which state is better for starting a business — New Mexico or Texas?
LLC filing costs are $50 in New Mexico vs $300 in Texas, with annual fees of $0 and $0 respectively. New Mexico's 5.9% top tax rate compared to Texas's tax-free status may also factor into your decision.
Should I move from New Mexico to Texas?
It depends on your priorities. New Mexico wins in 8 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 New Mexico and Texas
When deciding between living in New Mexico or Texas, 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.
New Mexico (NM) has a median household income of $54,020 with a cost of living index of 94.6. Texas (TX) has a median household income of $67,321 with a cost of living index of 93.9.
These numbers are estimates. Individual circumstances vary based on location within each state, family size, profession, and lifestyle. Use our free New Mexico calculator or Texas calculator to model your specific financial scenario.
Data sources: Census Bureau ACS, Tax Foundation, HUD FMR, BLS. Last verified January 2026. Calculators provide estimates only — consult a qualified professional for financial advice.