Taxes in Albuquerque, New Mexico
Complete tax guide for Albuquerque, NM. State income tax up to 5.9%, 0.72% property tax, 7.88% sales tax. Calculate your total tax burden.
State Income Tax
5.9%
New Mexico
Property Tax
0.72%
Effective rate
Sales Tax
7.88%
Combined rate
Tax Burden
Moderate
Albuquerque, NM Tax Overview
Largest city; moderate tax burden; gross receipts tax instead of sales tax
Population
564,559
Median Income
$53,936
Cost of Living
93.2 (100 = avg)
State Income Tax
5.9%
Median Home Price
$275,000
Albuquerque Tax Calculator
Pre-filled with Albuquerque median: $53,936
Total Tax Burden in Albuquerque
$11,742
Take-Home: $42,194 · Effective Rate: 21.77%
Federal Tax
$4,434
8.22% eff.
NM State
$3,182
5.90% eff.
FICA
$4,126
7.65% eff.
Take-Home
$42,194
78.23% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $53,936.00 | $4,494.67 |
| Federal Income Tax | -$4,433.82 | -$369.48 |
| New Mexico State Tax | -$3,182.22 | -$265.19 |
| Social Security (6.2%) | -$3,344.03 | -$278.67 |
| Medicare (1.45%) | -$782.07 | -$65.17 |
| Take-Home Pay | $42,193.85 | $3,516.15 |
Property Tax in Albuquerque
Median Home
$275,000
Annual Tax
$1,980
Monthly Tax
$165
Effective Rate
0.72%
Sales Tax in Albuquerque
Combined Rate
7.88%
State Portion
~5.4%
Local Portion
~2.5%
The combined sales tax rate in Albuquerque is 7.88%, which is above the national average of 7.12%. On a $100 purchase, you would pay $7.88 in sales tax.
Tax Burden Comparison
| Tax Type | Albuquerque | New Mexico Avg | National Avg |
|---|---|---|---|
| Income Tax | 5.9% | 5.9% | 4.6% |
| Property Tax | 0.72% | ~0.72% | 1.1% |
| Sales Tax | 7.88% | ~7.88% | 7.12% |
| Overall Burden | Moderate | — | Moderate |
Tax Saving Tips for Albuquerque Residents
- New Mexico's income tax rate of 5.9% is above average. Maximize pre-tax retirement contributions (401k up to $23,500, IRA up to $7,000) to reduce both federal and state taxable income.
- Property tax in Albuquerque (0.72%) is below the national average of 1.1%. This makes homeownership more affordable here relative to property tax burden.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,300 individual, $8,550 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
Other Cities in New Mexico
Calculate Your Full New Mexico Tax Burden
See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Albuquerque, NM?
Albuquerque, New Mexico has a state income tax rate up to 5.9%. The property tax rate is 0.72% and the combined sales tax rate is 7.88%. Largest city; moderate tax burden; gross receipts tax instead of sales tax
How much is property tax in Albuquerque?
The effective property tax rate in Albuquerque is 0.72%. On the median home price of $275,000, this equals approximately $1,980 per year or $165 per month. This is below the national average of 1.1%.
What is the sales tax rate in Albuquerque?
The combined sales tax rate in Albuquerque is 7.88%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Albuquerque's tax burden compare to other cities?
Albuquerque has a moderate overall tax burden. The effective total tax rate for a median-income household is approximately 27.1%. The combination of 5.9% state income tax, 0.72% property tax, and 7.88% sales tax determines the total burden. Cost of living index is 93.2 (100 = national average).
Are there any local taxes in Albuquerque?
Albuquerque does not impose a separate local or city income tax. Residents pay the state income tax of 5.9%, federal income tax, and FICA (Social Security and Medicare). Largest city; moderate tax burden; gross receipts tax instead of sales tax