The Land of Enchantment will surely enchant you with its property tax rates, which are among the lowest in the country. In fact, no more than 9-11% of statewide revenue is generated from property taxes, which is a similar pattern shared by few other states, particularly those in the South and surprisingly, Delaware as well. (Compare these numbers with the New England states where that percentage hovers around a whopping 50%!)
Taxes are levied at both the state and local levels, and property is assessed at its fair market value. Assessors usually determine this value through the sales-comparison approach which matches the value of a property with that of other similar properties. After that, the taxable value is determined simply by multiplying the assessed value by 33.33%, which is the taxable rate for the property.
New Mexico places a cap on property tax rate growth by an annual maximum of 3%. This includes rental properties as well as owner occupancy properties. Additionally, personal property such as household items, licensed vehicles, and registered aircraft is not subject to taxation. For additional information or to contact someone who may answer a specific question, go here.
Although New Mexico does not have an official Homestead Exemption, it does offer a Head of the Family Exemption for $2,000 of the property’s taxable value. The head of the family can include married couples, widow(er)s, or anyone who provided more than half the cost of support for any related person (including single people). Consult your county assessor to qualify. There is also a veteran’s exemption, which is also capped at $2,000 of the property’s taxable value.
Residents 65 years of age or older can benefit from a valuation limitation as long as they reside in New Mexico by the first of the year and have a modified household income of no more than $18,600. In other words, the assessed value of your property can’t increase as long as you qualify for the limitation. To qualify, simply fill out a form each year.
Read here for more information on exemptions as well to direct questions on matters not covered here.
New Mexico Taxation & Revenue Department
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