Should I Retire in New Mexico?
Category: Best Retirement Towns and States
January 28, 2024 — People ask, should I retire in New Mexico? The answer is easy if you are looking for a place to retire that has a varied climate, mountains, deserts, a big city (Albuquerque), small towns, ski resorts, and plenty of wide open spaces. It is also much less crowded than more traditional and popular retirement destinations like Florida, Arizona, and the Carolinas. In this article we will explore the pluses and minuses of a New Mexico retirement, along with some of the best places to retire in the Land of Enchantment.
New Mexico Climate
The State has a climate that many people will find as excellently suited for retirement. For folks who like low humidity, New Mexico is dry with a semi-arid climate. The northern sections experience winter, while the southern realms have warm winters. Generally the altitude is high and even has some mountains over 12,000 feet. The eastern portion of the State is more like the Great Plains. The southern portion borders on El Paso, TX, and Cuidad Juarez, Mexico.
New Mexico Taxes in Retirement
Tax Burden: At 10.2% the total tax burden in New Mexico is the 25th lowest of all the states (TaxFoundation.org).
Marginal Income Tax Rates: The New Mexico income tax has marginal rates from 1.7% to 5.9%.
Retirement Income Exemptions: There is a modest reduction in taxes for couples 65 or over with incomes less than $51,000. Military pensions might be eligible under this exemption. Search online and you can download the “Tax Information for New Mexico’s Senior Residents”
Social security exemption: NM is one of the few states that taxes social security payments, although the exemption discussed above might apply.
Sales Tax: State sales tax is called the Gross Receipts Tax : it is 5.13%, though higher in many municipalities, so the statewide average after surcharges is 7.35%.
Property Taxes: Per capita property tax paid is $880, which ranks it a tax-friendly 39th of all states. People over 65 with incomes less than $18,000 can get a small rebate on some of their property taxes.
Estate and/or Inheritance Taxes: New Mexico has no estate tax.
Link to New Mexico Taxation & Revenue
Map source: Nations online project
New Mexico State Guide
New Mexico has a population of just over 2.1 million. Household income is almost $59,000, almost $16,000 below the national median. Its cost of living is ranked 21st lowest in the nation, just above Kentucky’s. Compared to neighboring Arizona to the west and Colorado to the north, this less populous state has a smaller number of retirement choices. The most desirable towns are concentrated in the central portion of the state.
Let’s take a New Mexico Retirement Road Trip
To explore New Mexico by car could take some time. Since most of the most popular retirement towns run down the center of the State, you might want to start either in the north or the south. This virtual tour will hopefully whet your appetite for a New Mexico exploration, and help you learn more about the towns we mention here. There are 53 active adult and 55+ communities in our New Mexico Directory. You can also use our Community Explorer to filter for communities by unit type, amenities, and lifestyle.
Starting off in the northwestern corner of the state is Farmington. This town of 46,000 is in the “Four Corners” region, where the New Mexico, Colorado, Utah, and Arizona state borders intersect. It is a quiet portion of the state that is not a household name for retirees. San Juan College is an important part of the community. It also home to the Connie Mack Baseball tournament.
Taos, the famous ski and mountain resort, is a very popular place to retire in the top center of the State. Pueblo Indians lived here 500 years ago, followed by the Spanish in the 1500s and white settlers in the late 1800s. Taos has been home to a long line of famous artists and writers from Georgia O’Keeffe to Thornton Wilder. There are some active communities here.
Santa Fe. Located at 7000 feet in the foothills of the Rocky Mountains, Santa Fe offers a unique climate – high enough to be near some good skiing, yet southern enough to have a year-round livable climate. It offers awe-inspiring vistas of mountains, canyons, and gorges. Santa Fe is the oldest European community west of the Mississippi. Valverde is a cohousing community in Santa Fe. Residents there share common amenities but have their own private homes. Some amenities include a workshop/barn and a common house for community dining and meetings
Albuquerque, located near the State center, is by far the biggest city with the most retirement communities to choose from. It is home to the University of New Mexico. The Sandia Peak Tramway is the longest aerial passenger tramway in the world, ascending to the Sandia Mountains from the city. Fans of the TV show “Breaking Bad” will recognize many landmarks from the surrounding countryside. Las Lunas is a suburb just south of town. Here is a list of active communities in the Albuquerque area. One of those is Paa Ko, an interesting golf community with over 1,300 homes in Sandia Park. Mesa del Sol is another large community of “Build Green Homes”.
Moving south is Ruidoso. A mountain town and popular retirement destination, there is good skiing nearby at Ski Apache. Ruidoso Downs is a suburb and home to Ruidoso Downs (flat) horse racing track, the Billy the Kid Casino, and the Hubbard Museum of the American West. Ruidoso gets its name from the creek running through town.
Alamogordo is south of Albuquerque and an interesting, more affordable town. There is a surprising amount going on in Alamogordo thanks to the New Mexico Museum of Space History, a zoo, and a performing arts center. White Sands National Monument is nearby. Skiing and a casino are both available in the area. There are nice city parks. Desert Lakes Golf Course is a city-owned golf course
Las Cruces, the second largest city on New Mexico, is just south of Alamogordo along the Interstate. It had a rich history under Spain, and now has many cultural venues including New Mexico State University. The town is 4000 feet above sea level and enjoys 350 days of sunshine per year. Picacho Mountain Las Cruces is a master planned community has several neighborhoods featuring courtyard homes, villas and estate homes. There is golf, pickleball, and access to trails.
Carlsbad is off to the east from here, straddling the Pecos River on the edge of the Guadalupe Mountains. The town, which is the county seat of Eddy County, has a population over 26,000. The Carlsbad Caverns National Park and Lincoln National Forest are local attractions.
Deming is west of Las Cruces. Our member, Glenda, who lived here for a time, describes the town: “It is a small town with a slow pace of living. Everyone knows everyone. Retirees have been moving there for many years. Deming is a big farming and ranching community. Yes, I would say it is a good place to retire.”
To find more New Mexico communities by amenities, type of property, and lifestyle, use our Community Explorer. If you know additional places to retire here please let us know.
Comments? We and all your fellow members love to know what you are thinking. Please share your thoughts about retirement in the Comments section below.
For further reference:
Arizona, Utah, and New Mexico Retirement Guide
State Retirement Guides
Gulf Coast Retirement: Sun, Tax-friendly, and a Lower Coast of Living
Retirement 101 Mid-Atlantic States: MD, DE, VA, NJ
I’m Thinking of Retiring in Maine, NH, or VT
Dueling Carolinas: NC vs. SC
Dueling States Mid-South: TN, GA, KY, AL
Dueling States: Arizona vs. Florida
California Retirement 101
The Mountain States: CO, ID, MT, NV, UT, WY
The Pacific Northwest: Oregon vs. Washington
Comments on "Should I Retire in New Mexico?"
craig says:
The climate is excellent, but that's where the good news ends.
The crime is perpetual and out of control in all areas due to the
unchecked gangs that continue flooding into that city.
Our home was vandalized multiple times before we moved and
the police department is so minimally staffed they couldn't respond
to our call to investigate.
We has security cameras that showed the scumbags doing their
break-in, but the police said these gangs had overtaken the city.
If you move there you're putting your personal safety and property
at extreme risk!
Jini says:
Craig: Which community?
JS says:
Craig is correct! Crime is over the top! We moved away to retire elsewhere.
JBear says:
Craig and JS: Are you open to sharing specifically which communities or areas you are referring to? Thanks!
Bob says:
Last I checked Deming was west of Las Cruces not east. Thank you
Editor's Comment: Thank you Bob for the correction - sharp eyes! We have changed that in the article.