NM · #36 by population

Buying a home in New Mexico

Costs and rules that are specific to New Mexico. Main city: Albuquerque.

In short

New Mexico has no real estate transfer tax, does not require an attorney at closing and imposes only limited seller disclosures. It allows both court and out-of-court foreclosure and is a community property state. Deadline to appeal a property tax assessment: within 30 days of the notice of valuation (some counties mail it with the prior bill; then the later of April 1 or 30 days).

Calculate for New Mexico

If you buy

New Mexico state transfer tax

New Mexico has no real estate transfer tax. Change the price: the amount is recalculated instantly.

Price$279,900
State transfer tax$0
Share of the price—

Default price: the New Mexico median value of owner-occupied homes, $279,900 (Census ACS 2024). Rule: No tax is calculated on the price. A 2022 transfer tax bill (H.B. 158) died. Who pays: No transfer tax to assign. Buyers pay recording fees for the deed and mortgage; the sources do not assign them by law. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. New Mexico transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: New Mexico state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

New Mexico in short

Is there a real estate transfer tax in New Mexico?

New Mexico does not tax the transfer of a home in the sources read. The Bernalillo County Clerk records a deed for $25 per document with no tax line, and a homeowner's sale of their own home is exempt from gross receipts tax as an isolated or occasional sale.

Full New Mexico guide · Compare all 50 states

What closing costs does New Mexico law set?

New Mexico has no official typical closing-cost total. It has no transfer tax, recording in Bernalillo County costs $25 per document, and the Superintendent of Insurance sets title prices, such as $100 for a lender's policy issued with an owner's policy.

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How is property tax calculated in New Mexico?

New Mexico taxes one-third of a home's market value. Albuquerque's 2026 residential rate is 48.313 mills, about $6,357 a year on a $400,000 home after the $2,000 head-of-family exemption.

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What is the deadline to appeal a property tax assessment in New Mexico?

In New Mexico, file a protest with the county assessor within 30 days of the notice of valuation (mailed by April 1), the county valuation protests board hears it, and you can appeal its decision to district court.

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Do you need a real estate attorney to close in New Mexico?

The New Mexico statutes and Real Estate Commission rules read do not require a buyer or seller to hire an attorney for a home closing. Companies that hold escrow money for pay need a state escrow license (NMSA 58-22-7).

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What must a home seller disclose in New Mexico?

New Mexico statutes reviewed do not require a seller to complete a property condition form.

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How does foreclosure work in New Mexico?

New Mexico has two paths: a lender can sue in district court, or use the Deed of Trust Act to sell the home at a trustee's sale held at least 90 days after the notice of sale is recorded.

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What first-time home buyer programs does New Mexico offer?

In New Mexico, Housing New Mexico (the New Mexico Mortgage Finance Authority) runs FirstDown, a second mortgage of up to 4% of the price for down payment and closing costs, HomeNow, which gives $7,000 to lower-income buyers, and FirstDown Plus, which adds $10,000.

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Is New Mexico a community property state?

New Mexico is a community property state: property acquired during marriage is presumed community property (NMSA 40-3-12), and both spouses must join in a sale or mortgage of community real estate (NMSA 40-3-13).

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How are title insurance rates set in New Mexico?

New Mexico sets title insurance prices by government order: the Superintendent of Insurance fixes every premium in a title rate case, and agents may not discount or rebate them (13.14.9.8 and 13.14.9.12 NMAC). A lender's policy issued with the owner's policy costs a flat $100.

Full New Mexico guide

How much tax when you sell a home in New Mexico?

The federal rule is the same in New Mexico as in every state: if you owned and lived in the home as your main home for at least 2 of the last 5 years, the first $250,000 of gain is excluded, $500,000 for a married couple filing jointly (Section 121, IRS Publication 523). Bought $400,000, sold $750,000: a single owner has $100,000 of taxable gain, $15,000 of federal tax at the 15% long-term rate; a couple filing jointly owes nothing. New Mexico income tax on the gain is not computed here.

Capital gains on a home sale

New Mexico guides

Albuquerque

Buying a home in Albuquerque, New Mexico

Professionals in New Mexico

All states · Federal guides