How do tax burdens compare in Texas and New Mexico?
El Paso, Texas — Here's a good question now that it's tax season: How do the tax burdens in Texas and New Mexico compare?
You might be surprised to learn that while Texas often boasts about having no state income tax, the average tax burden on Texans is substantially higher than it is on their New Mexico neighbors.
In fact, a new survey from the personal finance website, WalletHub, shows that the effective state and local tax rates on the average family are more than 20% higher in Texas than in New Mexico and it adds up to more than $100 a month in additional taxation.
The WalletHub survey looked at how much each state taxed everything from property to income, sales, gas, cars and food, and how much they'd all cost the median U.S. household.
WalletHub defines that as an annual income of a little more than $63,000 a year and a median home value of about $217,000.
The survey showed New Mexico had the 20th lowest taxes among the 50 states and the District of Columbia while Texas had the 11th highest taxes on median households, with a tax burden of nearly 13%.
Here's something else that might surprise you. The overall tax burden in Texas was more than 40% higher than in California.
That's due in large part to the fact that California has much lower property taxes than Texas.