Taxes in Hobbs, New Mexico
Complete tax guide for Hobbs, NM. State income tax up to 5.9%, 0.83% property tax, 5.14% sales tax. Calculate your total tax burden.
State Income Tax
5.9%
New Mexico
Property Tax
0.83%
Effective rate
Sales Tax
5.14%
Combined rate
Tax Burden
Moderate
Hobbs, NM Tax Overview
Population
40,508
Median Income
$54,200
Cost of Living
94.7 (100 = avg)
State Income Tax
5.9%
Median Home Price
$255,000
Hobbs Tax Calculator
Pre-filled with Hobbs median: $54,200
Total Tax Burden in Hobbs
$11,810
Take-Home: $42,390 · Effective Rate: 21.79%
Federal Tax
$4,466
8.24% eff.
NM State
$3,198
5.90% eff.
FICA
$4,146
7.65% eff.
Take-Home
$42,390
78.21% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $54,200.00 | $4,516.67 |
| Federal Income Tax | -$4,465.50 | -$372.13 |
| New Mexico State Tax | -$3,197.80 | -$266.48 |
| Social Security (6.2%) | -$3,360.40 | -$280.03 |
| Medicare (1.45%) | -$785.90 | -$65.49 |
| Take-Home Pay | $42,390.40 | $3,532.53 |
Property Tax in Hobbs
Median Home
$255,000
Annual Tax
$2,117
Monthly Tax
$176
Effective Rate
0.83%
Sales Tax in Hobbs
Combined Rate
5.14%
State Portion
~2.6%
Local Portion
~2.5%
The combined sales tax rate in Hobbs is 5.14%, which is below the national average of 7.12%. On a $100 purchase, you would pay $5.14 in sales tax.
Tax Burden Comparison
| Tax Type | Hobbs | New Mexico Avg | National Avg |
|---|---|---|---|
| Income Tax | 5.9% | 5.9% | 4.6% |
| Property Tax | 0.83% | ~0.83% | 1.1% |
| Sales Tax | 5.14% | ~5.14% | 7.12% |
| Overall Burden | Moderate | — | Moderate |
Tax Saving Tips for Hobbs 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 Hobbs (0.83%) 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 Hobbs, NM?
Hobbs, New Mexico has a state income tax rate up to 5.9%. The property tax rate is 0.83% and the combined sales tax rate is 5.14%.
How much is property tax in Hobbs?
The effective property tax rate in Hobbs is 0.83%. On the median home price of $255,000, this equals approximately $2,117 per year or $176 per month. This is below the national average of 1.1%.
What is the sales tax rate in Hobbs?
The combined sales tax rate in Hobbs is 5.14%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Hobbs's tax burden compare to other cities?
Hobbs has a moderate overall tax burden. The effective total tax rate for a median-income household is approximately 26.5%. The combination of 5.9% state income tax, 0.83% property tax, and 5.14% sales tax determines the total burden. Cost of living index is 94.7 (100 = national average).
Are there any local taxes in Hobbs?
Hobbs 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).