New Mexico · Population 562,488 · Updated March 2026
How far your income goes in Albuquerque
State-level tax rates that affect your costs
Albuquerque is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 80 (where 100 equals the national median), Albuquerque residents can expect to pay median rent of $1,085/month while earning a median household income of $65,604/year.
The median home value in Albuquerque, NM is $266,700, with typical monthly owner costs around $1,149 including mortgage, insurance, and taxes. The median rent-to-income ratio of 19.8% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.
New Mexico has a moderate income tax rate of 5.9%. Combined with a 5.0% sales tax rate and 0.67% effective property tax rate, the overall tax environment is a factor in the total cost of living in Albuquerque.
Common questions about living costs in Albuquerque
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