State Comparison

Arizona vs New Mexico

New Mexico is cheaper overall, while $100 goes further in New Mexico, Arizona has higher incomes, Arizona has lower state income tax, and Arizona gets more sunshine.

Arizona

AZ • West

Better quality of life

Quality of Life Score

51.01

New Mexico

NM • West

Quality of Life Score

39.68

Arizona

17 / 31

metrics won

Wins

Score

New Mexico

14 / 31

metrics won

NM wins Housing

NM wins Quality of Life

AZ wins Climate

AZ wins Income

Quality of Life

Composite score — income, affordability, education, health, and safety.

Arizona winner

51.01

New Mexico

39.68

Arizona scores higher on quality of life — 11.33 points difference.

Quick Take

Arizona vs New Mexico

This quick read mixes affordability, housing, income, politics, density, and climate so the biggest tradeoffs show up fast.

Arizona has a larger population than New Mexico by 5,033,980 people.
New Mexico has the lower cost-of-living index. New Mexico is at 93.1, while Arizona is at 103.1.
After BEA price-level adjustments, $100 has about $106.52 of local buying power in New Mexico, versus $103.97 in Arizona.
Arizona has the higher median household income at $72,581, compared with $57,287 in New Mexico.

Overview

Key differences overview

These cards keep the comparison factual first, so the biggest tradeoffs in affordability, housing, taxes, politics, climate, and day-to-day living are easy to scan.

Overall Affordability

New Mexico is 10.0 points cheaper overall

New Mexico has the lower cost-of-living index. New Mexico is at 93.1, while Arizona is at 103.1.

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Real Dollar Value

$100 goes $2.55 further in New Mexico

After BEA price-level adjustments, $100 has about $106.52 of local buying power in New Mexico, versus $103.97 in Arizona.

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Income

Arizona income is 26.7% higher

Arizona has the higher median household income at $72,581, compared with $57,287 in New Mexico.

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Jobs

Arizona minimum wage is $3.15 higher

Arizona has the higher statewide minimum wage at $15.15/hr, compared with $12.00/hr in New Mexico.

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Housing

Arizona homes cost about 1.4x more

New Mexico has the lower median home value at $233,200, versus $327,400 in Arizona.

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Taxes

Arizona has lower state income tax

Arizona has the lower state income tax rate. Its top rate is 2.50%, compared with 5.90% in New Mexico.

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Full Comparison

Pick a category to focus on. General shows the most important facts at a glance.

Metric	AZ	NM	Deep dive
Capital City The official state capital.	Phoenix	Santa Fe	Details ->
State Color Simple political color label based on the 2024 presidential result and battleground status.	Swing State	Solid Blue	Details ->
Population Total resident population (2020 Census).	7,151,502	2,117,522	Details ->
Median Income Median household income in U.S. dollars.	$72,581	$57,287	Details ->
Cost of Living Composite cost of living index (100 = national average). Lower = more affordable.	103.1	93.1	Details ->
Median Housing Value Median residential home value in U.S. dollars.	$327,400	$233,200	Details ->
Property Tax Effective real-estate property tax rate (% of home value, WalletHub February 17, 2026 using 2024 data).	0.48%	0.70%	Details ->
State Income Tax Top marginal state income tax rate. 0% = no state income tax.	2.50%	5.90%	Details ->
Minimum Wage State minimum wage in U.S. dollars per hour (U.S. Department of Labor, updated January 1, 2026).	$15.15/hr	$12.00/hr	Details ->
Gas Price Average regular gasoline price by state (AAA State Gas Price Averages, updated daily).	$4.742/gal	$4.013/gal	Details ->
Electricity Rates Average residential electricity price in cents per kWh (EIA monthly state data, January 2026 preliminary).	15.61 c/kWh	14.70 c/kWh	Details ->
Livability Score Best States to Live In total score (August 11, 2025).	51.01	39.68	Details ->
Average Temperature Average annual statewide temperature in degrees Fahrenheit.	60.3°F	53.4°F	Details ->
Sunny Days Average number of sunny or mostly sunny days per year.	193 days	167 days	Details ->
Land Area Total land area in square miles.	113,990 sq mi	121,590 sq mi	Details ->
Population Density Number of residents per square mile.	62.7 per sq mi	17.4 per sq mi	Details ->
Statehood When the state was admitted to the Union and its admission order.	February 14, 1912 (#48)	January 6, 1912 (#47)	Details ->

Population -> Median Income -> Cost of Living -> Median Housing Value -> Property Tax -> State Income Tax -> Minimum Wage -> Gas Price -> Electricity Rates -> Livability Score -> Average Temperature -> Sunny Days -> Land Area -> Population Density ->

Metric	AZ	NM	Deep dive
Population Total resident population (2020 Census).	7,151,502	2,117,522	Details ->
Population Density Number of residents per square mile.	62.7 per sq mi	17.4 per sq mi	Details ->
Bachelor's Degree Adults age 25+ with a bachelor's degree or higher (ACS 2023).	33.5%	31.6%	Details ->
Advanced Degree Adults age 25+ with a graduate or professional degree (ACS 2023).	13.1%	14.1%	Details ->

Population -> Population Density -> Bachelor's Degree -> Advanced Degree ->

Metric	AZ	NM	Deep dive
Minimum Wage State minimum wage in U.S. dollars per hour (U.S. Department of Labor, updated January 1, 2026).	$15.15/hr	$12.00/hr	Details ->

Minimum Wage ->

Metric	AZ	NM	Deep dive
Livability Score Best States to Live In total score (August 11, 2025).	51.01	39.68	Details ->
Best State to Live In Composite living score for comparing states to live in, based on the existing livability score.	51.01	39.68	Details ->
Cost of Living Composite cost of living index (100 = national average). Lower = more affordable.	103.1	93.1	Details ->
Gas Price Average regular gasoline price by state (AAA State Gas Price Averages, updated daily).	$4.742/gal	$4.013/gal	Details ->
Gas Tax State gasoline excise tax in cents per gallon. Lower = lower state fuel tax burden.	18.00 c/gal	17.00 c/gal	Details ->
Electricity Rates Average residential electricity price in cents per kWh (EIA monthly state data, January 2026 preliminary).	15.61 c/kWh	14.70 c/kWh	Details ->
Commute Time Average commute time in minutes.	25.9 min	21.7 min	Details ->

Livability Score -> Best State to Live In -> Cost of Living -> Gas Price -> Gas Tax -> Electricity Rates -> Commute Time ->

Metric	AZ	NM	Deep dive
Average Temperature Average annual statewide temperature in degrees Fahrenheit.	60.3°F	53.4°F	Details ->
Summer Temperature Average statewide summer temperature across June, July, and August.	78.1°F	71.4°F	Details ->
Winter Temperature Average statewide winter temperature across December, January, and February.	43.6°F	36.1°F	Details ->
Sunny Days Average number of sunny or mostly sunny days per year.	193 days	167 days	Details ->
Annual Precipitation Average annual rain and snowfall combined, measured in inches.	13.6 in	14.6 in	Details ->

Average Temperature -> Summer Temperature -> Winter Temperature -> Sunny Days -> Annual Precipitation ->

Metric	AZ	NM	Deep dive
Median Housing Value Median residential home value in U.S. dollars.	$327,400	$233,200	Details ->
Median Gross Rent Median gross monthly rent in U.S. dollars.	$1,311/mo	$966/mo	Details ->
Median Monthly Owner Costs With Mortgage Median selected monthly owner costs for households with a mortgage.	-	-	Details ->
Owner Costs Without Mortgage Median selected monthly owner costs for households without a mortgage.	-	-	Details ->
Homeownership Rate Share of occupied housing units that are owner-occupied.	65.5%	68.3%	Details ->
Home Value to Income Ratio Median home value divided by median household income.	4.51x	4.07x	Details ->
Rent to Income Ratio Annualized median gross rent as a share of median household income.	21.7%	20.2%	Details ->
Owner Costs to Income Median selected monthly owner costs as a percentage of household income (ACS 2023).	16.6%	15.9%	Details ->

Median Housing Value -> Median Gross Rent -> Median Monthly Owner Costs With Mortgage -> Owner Costs Without Mortgage -> Homeownership Rate -> Home Value to Income Ratio -> Rent to Income Ratio -> Owner Costs to Income ->

Metric	AZ	NM	Deep dive
State Income Tax Top marginal state income tax rate. 0% = no state income tax.	2.50%	5.90%	Details ->
State Sales Tax State-level sales tax rate. 0% = no state sales tax (local taxes may apply).	5.60%	5.00%	Details ->
Property Tax Effective real-estate property tax rate (% of home value, WalletHub February 17, 2026 using 2024 data).	0.48%	0.70%	Details ->

State Income Tax -> State Sales Tax -> Property Tax ->

Metric	AZ	NM	Deep dive
State Color Simple political color label based on the 2024 presidential result and battleground status.	Swing State	Solid Blue	Details ->
Presidential Voting Margin Signed 2024 presidential margin in percentage points (positive = Democratic, negative = Republican).	Rep +5.51	Dem +6.00	Details ->
Swing State / Battleground Whether the state was part of the core 2024 battleground map.	Battleground	Not a battleground	Details ->
Governor Party Current governor's party (NCSL partisan composition, January 27, 2026).	Democratic	Democratic	Details ->
State House Control Current partisan control of the lower legislative chamber (NCSL, January 27, 2026).	Republican	Democratic	Details ->
State Senate Control Current partisan control of the upper legislative chamber (NCSL, January 27, 2026).	Republican	Democratic	Details ->
Trifecta Whether one party controls the governorship and both legislative chambers (NCSL, January 27, 2026).	No Trifecta	Democratic Trifecta	Details ->

Presidential Voting Margin ->

Metric	AZ	NM	Deep dive
Gun Laws Status Simplified statewide gun-law label based on current Giffords grades: A to B = Restrictive, C to F = Permissive (scorecard modified February 20, 2026).	Permissive	Restrictive	Details ->
Alcohol Laws Whether the state uses a control-state or license-state model for distilled-spirit sales (NABCA directory accessed April 6, 2026).	License State	License State	Details ->
Marijuana Legalization Current statewide marijuana status: Legal, Medical, or Illegal (NCSL state cannabis laws page updated June 27, 2025).	Legal	Legal	Details ->

Metric	AZ	NM	Deep dive
Land Area Total land area in square miles.	113,990 sq mi	121,590 sq mi	Details ->
Highest Point Highest natural point in the state, with summit elevation.	Humphreys Peak (12,637 ft)	Wheeler Peak (13,167 ft)	Details ->
Statehood When the state was admitted to the Union and its admission order.	February 14, 1912 (#48)	January 6, 1912 (#47)	Details ->
Capital City The official state capital.	Phoenix	Santa Fe	Details ->
Region U.S. Census Bureau geographic region.	West	West	Details ->

Land Area -> Highest Point ->

Metric	AZ	NM	Deep dive
Life Expectancy Life expectancy at birth in years (CDC 2021).	76.6 yrs	74.1 yrs	Details ->
Older Adult Health Outcomes Composite score for comparing state health outcomes for older adults, using life expectancy, insurance coverage, and obesity prevalence.	51.3	44.1	Details ->
Uninsured Rate Share of residents without health insurance coverage.	9.9%	9.1%	Details ->
Obesity Rate Adult obesity prevalence.	33.3%	34.5%	Details ->

Life Expectancy -> Older Adult Health Outcomes -> Uninsured Rate -> Obesity Rate ->

Metric	AZ	NM	Deep dive
Violent Crime Rate Violent crime incidents per 100,000 residents (FBI UCR 2022).	473.4	779.0	Details ->
Property Crime Rate Property crime incidents per 100,000 residents.	2150.2	3176.6	Details ->

Violent Crime Rate -> Property Crime Rate ->

Metric	AZ	NM	Deep dive
Median Income Median household income in U.S. dollars.	$72,581	$57,287	Details ->
Regional Price Parity Official price level relative to the national average (100 = U.S. average).	99.2	92.0	Details ->
Purchasing Power of $100 Real local value of $100 after adjusting for BEA Regional Price Parities.	$103.97	$106.52	Details ->
Poverty Rate Share of residents below the federal poverty line (ACS 2023).	12.4%	17.8%	Details ->
Employment/Population Ratio Employed civilian population as a share of the adult population (ACS 2023).	57.8%	55.0%	Details ->
Unemployment Rate Seasonally adjusted unemployment rate (BLS, December 2025).	4.3%	4.3%	Details ->
Job Growth Change in total nonfarm payroll employment from December 2024 to December 2025 (BLS).	0.8%	1.0%	Details ->

Median Income -> Regional Price Parity -> Purchasing Power of $100 -> Poverty Rate -> Employment/Population Ratio -> Unemployment Rate -> Job Growth ->

Metric	AZ	NM	Deep dive
Retirement Score Composite score for comparing states for retirement, combining affordability, taxes, housing, health, safety, and winter climate.	69.4	56.0	Details ->

Retirement Score ->

Intent-Oriented

Which state fits your priorities better?

Use these cards as decision shortcuts for common goals like saving money, buying a home, finding better weather, or optimizing for work and family life.

Saving Money

New Mexico is cheaper overall

Overall cost-of-living index: 93.1 vs 103.1 in Arizona. On a national baseline of 100, the lower score usually means cheaper day-to-day expenses.

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Gas Price

New Mexico is cheaper at the pump

Average regular gas price: $4.013/gal in New Mexico vs $4.742/gal in Arizona. Lower pump prices can cut everyday driving costs.

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Minimum Wage

Arizona has the higher minimum wage

State minimum wage: $15.15/hr in Arizona vs $12.00/hr in New Mexico. That matters most for hourly, entry-level, and part-time workers.

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Electricity Rates

New Mexico has cheaper electricity

Average residential electricity rate: 14.70 c/kWh in New Mexico vs 15.61 c/kWh in Arizona. Lower cents-per-kWh pricing can help keep utility bills down.

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Buying a Home

New Mexico is more attainable for buyers

Home-value-to-income ratio: 4.07x in New Mexico vs 4.51x in Arizona. A lower ratio means the median home is easier to afford on a median income.

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Renting

New Mexico is easier for renters

Rent-to-income ratio: 20.2% in New Mexico vs 21.7% in Arizona. A lower percentage means rent takes a smaller bite out of a typical household budget.

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Property Tax

Arizona has lower property taxes

Effective property tax rate: 0.48% in Arizona vs 0.70% in New Mexico. A lower rate usually means a smaller yearly tax bill relative to home value.

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Battleground Politics

Arizona is a swing state

Arizona was one of the core 2024 battleground states, while New Mexico was not. That usually means tighter races and more campaign attention.

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State Color

New Mexico votes bluer

2024 presidential margin: Dem +6.00 in New Mexico vs Rep +5.51 in Arizona.

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Government Control

New Mexico has a trifecta

New Mexico currently has democratic trifecta, while Arizona does not. That usually means state laws can move faster in New Mexico.

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Gun Laws

New Mexico has stricter gun laws

New Mexico falls into the restrictive category, while Arizona falls into the permissive category on this simplified statewide comparison.

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Lower Taxes

Arizona has lower income taxes

Top state income tax rate: 2.50% in Arizona vs 5.90% in New Mexico.

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More Space

New Mexico feels less crowded

Population density: 17.4 per sq mi in New Mexico vs 62.7 per sq mi in Arizona. Lower density usually means more space and less day-to-day congestion.

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Shorter Commute

New Mexico has the shorter commute

Average commute: 21.7 min in New Mexico vs 25.9 min in Arizona.

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Remote Workers

Arizona looks better for remote workers

Livability score: 51.01 in Arizona vs 39.68 in New Mexico.

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Families

Arizona looks better for families

Arizona wins more family-oriented signals in this matchup, including violent crime rate, life expectancy, bachelor's degree compared with New Mexico.

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Warmer Climate

Arizona is warmer overall

Average annual temperature: 60.3°F in Arizona vs 53.4°F in New Mexico.

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More Sunshine

Arizona gets more sun

Sunny days per year: 193 days in Arizona vs 167 days in New Mexico.

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Detailed Metric Pages

Grouped tabs keep the deep-dive links tighter and easier to scan.

Population

Arizona has a larger population than New Mexico by 5,033,980 people.

Population Density

Arizona is more densely populated than New Mexico.

Bachelor's Degree

Arizona has a higher college-educated share than New Mexico.

Advanced Degree

New Mexico has a higher advanced-degree share than Arizona.

Arizona vs New Mexico - Common Questions

Q Is Arizona cheaper to live in than New Mexico?

New Mexico has the lower cost of living. On the national index (100 = average), New Mexico scores 93.1 versus 103.1 for Arizona - a gap of 10.0 points.

Q Where does $100 go further - Arizona or New Mexico?

$100 goes further in New Mexico. After BEA regional price adjustments, $100 is worth about $106.52 in New Mexico, compared with $103.97 in Arizona.

Q Which state is bigger - Arizona or New Mexico?

New Mexico is larger, covering 121,590 sq mi compared with 113,990 sq mi for Arizona - roughly 1.1x the size.

Q Does Arizona or New Mexico have more people?

Arizona has the larger population at 7,151,502, compared with 2,117,522 in New Mexico.

Q Which state has higher household income - Arizona or New Mexico?

Arizona has the higher median household income at $72,581, versus $57,287 in New Mexico.

Q Which state has lower income taxes - Arizona or New Mexico?

Arizona has the lower state income tax top rate at 2.50%, compared with 5.90% in New Mexico.

Q Is housing cheaper in Arizona or New Mexico?

Homes are cheaper in New Mexico, where the median home value is $233,200, versus $327,400 in Arizona.

Q Which state is more densely populated - Arizona or New Mexico?

Arizona is more densely populated at 62.7 per sq mi people per sq mi. New Mexico is more spread out at 17.4 per sq mi people per sq mi.

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Methodology

All figures are sourced from U.S. government datasets and updated annually. Page last updated: April 2026.

Core demographic data comes from the 2020 U.S. Census, with land area from U.S. Census Bureau TIGER files and statehood dates from the National Archives. Income, housing, affordability, and tax fields are maintained in our comparison dataset; purchasing-power figures use BEA Regional Price Parities. Minimum wage data comes from the U.S. Department of Labor, gas prices from AAA, and electricity rates from the U.S. Energy Information Administration. Political control and election fields use 2024 presidential results together with National Conference of State Legislatures data. Gun-law labels use the Giffords scorecard, alcohol system data comes from NABCA, and marijuana status uses NCSL's state cannabis laws tracker. See our editorial policy for how we review and update these pages.