New Mexico Property Taxes
Overview of New Mexico Property Taxes
Homeowners in New Mexico are required by law to pay property taxes every year unless exempted. New Mexico property taxes are administered and collected by local governments with oversight from the state's Property Tax Division. Property taxes are a major source of funding for local governments and schools. Almost half of the revenue collected from property taxes fund county and city governments while roughly 30% is used to fund schools.
Every year, the state and its local governments collect $21 billion in revenue. Of that, $1.7 billion or 7.85% of total revenue comes from property taxes. Generally speaking, New Mexico is a low property tax state as indicated by the lower percentage of property taxes compared to total revenue. The average homeowner pays $6.57 for every $1,000 of home value in property taxes. The average New Mexico property tax bill adds up to $1,320 although it ultimately depends on the county in which your property is located. For instance, homeowners in Santa Fe County pay an average of $1,717 while those in McKinley County pay $393.
How do New Mexico property taxes work? Property taxes are based on the market value of your property. Each year, County Assessors are required to value properties at their "market value" or the amount an unobligated buyer would pay for the property. The state limits an increase in property values by 3% every year. It is also noteworthy that taxes are based on the previous year's value. This means your 2021 New Mexico property tax bill will be based on the value of your property as of 2020.
However, New Mexico property taxes are applied to the assessed value of your property, not its market value. The state requires that properties be assessed at one-third of their market value. Assuming your home has a market value of $150,000, the assessed value would be ($150,000 x 1/3) $50,000. If you qualify for any exemptions, they are deducted from the assessed value to get the taxable value. Tax rates are then applied to the taxable value to get your annual New Mexico property tax bill.
New Mexico tax rates are determined by the local taxing authorities depending on their budgetary requirements. The rates are expressed in "mills" where a mill rate is equivalent to $1 of tax for every $1,000 of taxable value, or $0.001. If your property's taxable value after exemptions was $50,000 and your tax district has a mill rate of 20 mills, your New Mexico property tax bill would be ($50,000 x $0.02) $1,000.
If you are planning to buy a home in New Mexico and want to understand how much your property tax bill could potentially cost, check out our New Mexico Property Tax Tool to see what your bill would be.
New Mexico Property Tax Due Dates
County Assessors determine the tax status of properties within their boundaries as of January 1 each year. You receive the official Notice of Value on or before April 1. The notice contains details about your property's net taxable value. It provides you with an opportunity to verify the correctness of your property's information. The notice also contains the procedure for appealing property taxes if you disagree with the valuation of your property. Tax bills are sent out to homeowners by November 1. It is noteworthy that you are still liable for New Mexico property taxes even if you didn't receive a tax bill. If you don't receive a property tax bill by Nov. 7, call the County Treasurer's Office.
But when are property taxes due in New Mexico? The state allows you to pay property taxes in two installments. The first half is due on November 10 and becomes delinquent after December 10. The second half is due on April 10 and becomes delinquent after May 10. New Mexico property taxes are payable to the County Treasurer.
Taxes that remain unpaid after New Mexico property tax due dates result in interest calculated at 1% of the due taxes per month until paid. Additionally, a maximum penalty of 5% and a minimum of $5 of the base tax due is imposed every month. If the New Mexico property taxes remain unpaid after three years, the State Taxation and Revenue Department, Property Tax Division conducts a public auction in which your property is sold to the highest bidder to recover the delinquent taxes, interest, and penalty charges.
New Mexico Property Tax Exemptions
Besides offering you the option to appeal property taxes if you feel your property was wrongly valued, the state of New Mexico offers several exemptions to cushion homeowners. They include the head of family exemption and senior exemptions. Eligible homeowners can reduce their New Mexico property tax bills. However, you are still subject to New Mexico property tax due dates notwithstanding your eligibility.
New Mexico Homestead Exemption
Instead of the homestead exemption offered in most other states, the state of New Mexico has the head of family exemption. Under this provision, $2,000 of your property's taxable value is exempted from New Mexico property taxes. To qualify, you must be the head of the family and the property's legal owner. Only a single-family exemption is allowed per household. You must apply once for this exemption to receive it in successive years.
New Mexico Senior Citizens Exemption
New Mexico's version of the senior exemption is known as the Property Tax Rebate for Persons 65 or Older. Under this provision, eligible homeowners receive a rebate for New Mexico property taxes paid during the tax year on their principal residence. The maximum credit cannot exceed $250 or $125 for married couples filing separately. To qualify, homeowners must be aged at least 65, be physically present in the state for at least six months of the tax year, and meet certain income limit requirements.
Other New Mexico property tax exemptions include the veterans' exemption. Under this exemption, a completely disabled veteran benefits from 100% exemption from property tax on their principal residence. Additionally, veterans who are not disabled benefit from a reduction of their property's taxable value by up to $4,000 per veteran. Eligibility for these exemptions is determined by New Mexico Veteran's Service Commission which issues a certificate to qualifying veterans. You must take this certificate to the County Assessor to apply for the exemption.
How to Appeal Your Property Taxes in New Mexico
You can appeal property taxes in New Mexico if you have reasons and evidence showing that your home's valuation is higher than its market value. A successful appeal can lower your New Mexico property taxes. The first step of appeal is a petition to the County Assessor within 30 days of receiving the Notice of Value. The assessor can resolve the issues without the need for a formal appeal. However, if you still disagree with the valuation, you can file a formal appeal with the Valuation Protest Board. If you don't find the decisions by the Board satisfactory, you can appeal to the New Mexico Court of Appeals. You must pay the amount of taxes due on your property's "un-protested value", or the value you think your property is worth, pending the outcome of your appeal. Contact your local Treasurer's Office for more information on the amount you should pay on the un-protested value.
The process of filing an assessment appeal varies across New Mexico though it generally follows the same steps from county to county:
- Obtain your assessment
- Determine if you are overassessed
- Complete forms needed to appeal
- File property tax appeal
- Prepare for hearing
- Attend hearing
- Appeal the decision
How to Appeal Your Property Taxes in Bernalillo County
To help you understand how to appeal your property taxes in New Mexico, here is a breakdown of the process in Bernalillo County, the most populous county in New Mexico.
Obtain your assessment
Details about your assessment can be obtained from the Notice of Value. Alternatively, contact the Bernalillo County Assessor.
Determine if you are over-assessed
The best way to determine if you are over-assessed is by comparing the sales prices of units around your neighborhood with similar characteristics to your property. Use TaxProper's search tool to conduct the search and see how the prices compare to the value placed on your property.
Complete forms needed to appeal
The forms you need to appeal property taxes will be provided to you at the Bernalillo County Assessor's Office or on the Assessor's web page.
File property tax appeal
Property tax appeals in Bernalillo County are filed with the Assessor's Office which then sets a formal hearing with the Bernalillo County Valuation Protest Board.
Prepare for hearing
The Assessor's valuation is presumed correct and the burden of proof is on you as the appellant. Preparing for an appeal hearing involves collecting and organizing evidence supporting your opinion of value. This can include but is not limited to comparable sales, photos showing the condition of the property, and an appraisal report from a certified appraiser.
Bernalillo County Valuation Protest Board requires you to attend the appeal hearing to present evidence and answer questions from members of the Board.
Appeal the decision
Decisions by the County Board can be appealed to the New Mexico Court of Appeals.
Property Tax Information for New Mexico Counties
The table below provides county-level information about how property taxes work in each New Mexico county.
Want to learn more? Click the county links to learn more about a specific New Mexico county.
|County||Average Home Value||Average Tax Bill||Bill per $1,000|
|De Baca County||$139,494||$881||$6.30|
|Doña Ana County||$160,669||$1,082||$6.70|
|Los Alamos County||$290,187||$1,866||$6.40|
|Rio Arriba County||$371,466||$538||$1.40|
|San Juan County||$158,845||$753||$4.70|
|San Miguel County||$153,635||$786||$5.10|
|Santa Fe County||$346,849||$1,717||$5.00|