NEW MEXICO (KRQE) – As the deadline to file your taxes for last year gets closer, WalletHub has come out with a study ranking each U.S. state on how “tax-friendly” they are. They compared state and local tax rates with the 50 states and the District of Columbia against national averages.
Overall, the Land of Enchantment ranked #22 in the study. WalletHub looked at each state across four types of taxation: 1) real-estate Tax, 2) vehicle property tax, 3) income tax, and 4) sales & excise tax.
The study shows New Mexico’s total state and local tax rate on median U.S. households is 10.59% and the total annual state and local taxes on median U.S. households at $7,361. The state shined bright when it came to gas taxes. New Mexico is the third lowest behind Mississippi and Alaska.
The study did note that red states typically fared better in their average rankings over blue states due to the fact that red states impose lower tax rates than blue states do. The study was based on the assumption that the median U.S. Household has an income equal to $69,508 and owns a home valued at $244,900 as well as owns a car valued at $26,220.
