Cost of Living for New Mexico (2026)
New Mexico (NM) Key Facts
Cost of Living Index
93
National Average Index
100
Median Household Income
$53,000
Approximate Median Rent (1 B R)
$900/month
State Income Tax Rate
5.9%
How This Calculator Works in New Mexico
This cost of living calculator helps you compare salaries between New Mexico and other states or cities by adjusting for purchasing power differences. Enter a salary and a target location to see what equivalent income you would need. It uses New Mexico's cost of living index of 93 relative to the national average of 100 to provide an accurate comparison.
New Mexico Overview
New Mexico has a cost of living index of 93, where 100 represents the national average. New Mexico has a below-average cost of living overall. Santa Fe and Los Alamos are notably more expensive due to tourism and federal research facilities, while Albuquerque is more moderate. The median household income is $53,000, which has a purchasing power equivalent of approximately $56,989 in an average-cost location.
How New Mexico Compares
New Mexico's cost of living index of 93 compares to Arizona's 103 and Texas's 92. Residents in New Mexico benefit from lower costs compared to the national average, meaning salaries stretch further here. The most affordable states like Mississippi (84) cost roughly 11% less than New Mexico, while the most expensive like Hawaii (192) cost 106% more.
| State | Top Rate | Notes |
|---|---|---|
| Arizona | COL Index: 103 | Arizona has a cost of living index of 103 and a median household income of $65,000. It is more expensive than New Mexico. |
| Texas | COL Index: 92 | Texas has a cost of living index of 92 and a median household income of $67,000. It is more affordable than New Mexico. |
| Colorado | COL Index: 105 | Colorado has a cost of living index of 105 and a median household income of $80,000. It is more expensive than New Mexico. |
The national average cost of living index is 100. New Mexico's index of 93 is below the national average. States like Mississippi (84) and West Virginia (84) have the lowest cost of living, while Hawaii (192) and DC (148) have the highest. New Mexico's median household income of $53,000 should be evaluated alongside its cost of living to understand real purchasing power.
Tips for New Mexico Residents
- 1New Mexico has a below-average cost of living overall. Santa Fe and Los Alamos are notably more expensive due to tourism and federal research facilities, while Albuquerque is more moderate.
- 2New Mexico's median household income of $53,000 has a real purchasing power of about $56,989 when adjusted to the national average. Compare this figure, not the raw salary, when evaluating cross-state moves or job offers.
- 3New Mexico's top state income tax rate of 5.9% further reduces purchasing power beyond what the cost of living index alone shows. Factor in taxes when making state-to-state comparisons.
- 4When comparing job offers between states, adjust salaries by the cost of living index. A $60,000 salary in a state with an index of 90 provides more purchasing power than $70,000 in a state with an index above 105.
- 5Look beyond the state average — costs can vary dramatically within New Mexico between metro areas, suburbs, and rural communities. Research the specific city or county where you would live.