Albuquerque, NM Taxes 2025
Complete local tax guide and OBBBA calculator
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Albuquerque Tax Overview 2025
Moderate tax burden with affordable housing. Growing tech sector.
Local Income Tax
0%
City/county rate
Sales Tax
7.80%
State + local
Property Tax
0.78%
Effective rate
Median Home
$285,000
Home value
No Local Income Tax!
Albuquerque does not impose a local income tax on residents, which means you only pay state income tax (if applicable) and federal taxes.
State Tax Information
Albuquerque is located in New Mexico (1.7% - 5.9% state income tax)
💼 Albuquerque Local Income Tax
Albuquerque does not impose a local income tax on residents. Your income tax obligations are limited to state income tax (if applicable in New Mexico) and federal income tax.
This is good news for Albuquerque residents, as it means one less tax to worry about compared to cities that do impose local income taxes.
Total Income Tax Burden in Albuquerque
🛒 Albuquerque Sales Tax 2025
The combined sales tax rate in Albuquerque is 7.80%. This includes both the New Mexico sales tax and any local sales taxes.
Sales tax applies to most retail purchases in Albuquerque. Some items like groceries, prescription medications, and clothing may be exempt or taxed at reduced rates depending on New Mexico law.
Sales Tax Breakdown
Sales Tax Examples
| Purchase Amount | Sales Tax | Total |
|---|---|---|
| $50 | $3.90 | $53.90 |
| $100 | $7.80 | $107.80 |
| $500 | $39.00 | $539.00 |
| $1,000 | $78.00 | $1,078.00 |
🏠 Albuquerque Property Tax 2025
The average effective property tax rate in Albuquerque is 0.78%. Based on the median home value of $285,000, the typical homeowner pays approximately $2,223 per year in property taxes.
Property taxes fund local services including schools, police, fire departments, roads, and parks. Rates vary by specific location within Albuquerque based on school district and other taxing authorities.
Estimated Annual Property Tax in Albuquerque
| Home Value | Annual Tax | Monthly | SALT Deductible? |
|---|---|---|---|
| $200,000 | $1,560 | $130 | ✓ Yes |
| $300,000 | $2,340 | $195 | ✓ Yes |
| $400,000 | $3,120 | $260 | ✓ Yes |
| $500,000 | $3,900 | $325 | ✓ Yes |
| $750,000 | $5,850 | $488 | ✓ Yes |
| $1,000,000 | $7,800 | $650 | ✓ Yes |
💡 SALT Tip: Under the OBBBA, you can deduct up to $40,000 in state and local taxes (SALT) on your federal return. This includes property taxes, state income taxes, and local income taxes.
💰 Albuquerque Cost of Living
Housing Costs
Tax Summary
OBBBA Tax Benefits for Albuquerque Residents
Service and hospitality workers benefit from OBBBA deductions.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several federal tax deductions that can significantly reduce your tax burden as a Albuquerque resident.
Available OBBBA Deductions:
Calculate Your Albuquerque Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Albuquerque resident.
Calculate My SavingsFrequently Asked Questions
What is the sales tax in Albuquerque?
The combined sales tax rate in Albuquerque is 7.80%. This includes both state and local sales taxes.
Does Albuquerque have a local income tax?
Albuquerque has a local income tax of 0%. This is in addition to any state and federal income taxes.
What is the property tax rate in Albuquerque?
The average effective property tax rate in Albuquerque is 0.78%. On a home worth $285,000, you'd pay approximately $2,223 per year.
How do OBBBA deductions benefit Albuquerque residents?
Service and hospitality workers benefit from OBBBA deductions. You can use our free calculator to estimate your total savings from tips, overtime, auto loan interest, SALT, and senior bonus deductions.