New Mexico vs Utah: Tax Impact on Your Salary
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 Utah delivers about $43 more in annual take-home at $85,000 (4.85% versus 4.90%). New Mexico keeps competitive by providing outdoor recreation. The decision often centers on job market rather than tax rates alone.
New Mexico charges 4.90% while Utah sits at 4.85%. For $85,000 earners, that difference translates to approximately $43 per year. It's a meaningful gap, though hardly the only consideration in a state-to-state comparison.
🔑 Key Differences
- **State income tax**: New Mexico at 4.90% vs Utah at 4.85%
- **Annual savings** (on $85,000): Utah saves you ~$43
- **Tax system**: Both use progressive brackets
- **Deductions**: Standard federal deductions apply, state variations exist
- **Local taxes**: Check your specific county/city as rates vary within states
Tax Comparison
| Tax Type | New Mexico | Utah |
|---|---|---|
| State Income Tax | 1.7% - 4.9% | 4.85% |
| 💰 On $40,000 Salary |
State Tax: $1,320
Take Home: $38,680
+$620
|
State Tax: $1,940
Take Home: $38,060
|
| 💰 On $60,000 Salary |
State Tax: $1,980
Take Home: $58,020
+$930
|
State Tax: $2,910
Take Home: $57,090
|
| 💰 On $100,000 Salary |
State Tax: $3,300
Take Home: $96,700
+$1,550
|
State Tax: $4,850
Take Home: $95,150
|
| Cost of Living | New Mexico ranks among America's most affordable states. Albuquerque offers genuine metropolitan amenities with housing costs dramatically below national averages - quality homes often sell for $200,000-300,000. Santa Fe commands premium prices but remains more affordable than comparable tourist destinations. Las Cruces, Farmington, and other cities provide exceptional value. Property taxes stay low statewide. General expenses run well below national averages. The extreme affordability means even modest incomes support comfortable lifestyles. | Utah costs have increased substantially. Salt Lake City and surrounding areas command prices approaching expensive metros - median home prices often exceed $450,000-500,000. Provo-Orem follows similar trajectory. Smaller Utah cities offer better value. Property taxes stay moderate. Sales tax reaches 7-8%. The affordability advantage Utah once offered has compressed significantly as technology sector drives population growth and housing demand. |
Pros & Cons
New Mexico
✓ Advantages
- Low cost of living
- Beautiful landscapes
- Unique culture
- Research institutions
⚠ Considerations
- Lower average salaries
- Limited job market
- High poverty rate in some areas
- Education challenges
Utah
✓ Advantages
- Flat 4.65% income tax is simple and predictable
- Strong growing technology sector
- Beautiful outdoor recreation and skiing
- Lower unemployment rates
- Young educated workforce
⚠ Considerations
- Rising housing costs especially in Salt Lake area
- Air quality issues in winter months
- Limited public transportation
- Sales tax can be high
- Some areas face water scarcity
Bottom Line
Tax-wise, Utah wins with about $43 annual savings at $85,000. New Mexico maintains pull through outdoor recreation, which resonates particularly with skiers. Recent trends show artists moving to Utah, though New Mexico continues drawing people who prioritize {factor}.📢 Share This Comparison
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