Kiplinger: New Mexico one of 10 Most Tax-Friendly States in the U.S.
Given a choice of several job opportunities across the country, or several contiguous states in which to live for a job in the area, don’t overlook the impact of state and local taxes on your household finances. New Mexico imposes some of the lowest taxes in the U.S., according to Kiplinger’s analysis of state tax rules.
State income tax: 1.7%-4.9%State sales tax: 5.125%Gas taxes and fees: $0.19 cents per gallon
Personal income tax rates in the Land of Enchantment top out at 4.9% on taxable income over $16,000 for single filers and $24,000 for married couples filing jointly.
Gas taxes are below average for the U.S. Car buyers get a break: Sales taxes on motor vehicles are 3%, well below the overall sales tax rate.
Property taxes are among the lowest in the country. The median property tax on the state's median home value of $160,900 is $880, according to the Tax Foundation.
The state levies a sales tax of 5.125%, which is imposed on businesses and typically passed on to consumers. County and city sales taxes may add up to 3.56%. And unlike most states, New Mexico doesn’t exclude food from sales taxes, although prescription drugs are exempt.
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