Colorado and New Mexico at a glance
Colorado and New Mexico share a border, but a paycheck does not travel across it unchanged. A $60,000 salary leaves $22,208 a year after taxes and the four basics in Colorado and $29,334 in New Mexico.
New Mexico comes out ahead by $7,126 a year ($594 a month). The calculation starts from the same gross pay in both states, subtracts federal tax, Social Security and Medicare, then each state's own income tax, and then the population-weighted cost of a one-bedroom rental, groceries, home energy and gasoline across 5,862,189 people in 64 counties in Colorado and 2,120,246 people in 33 counties in New Mexico.
Taxes: what each paycheck loses
Federal income tax ($5,072) and FICA ($4,590) on $60,000 are the same on both sides of the border. State income tax takes $1,980 in Colorado and $1,706 in New Mexico, which leaves take-home pay of $48,359 and $48,633.
At $100,000
At $100,000 take-home pay is $75,161 in Colorado and $75,278 in New Mexico, a difference of $117. The gap does not widen much with income because the two states tax at similar rates.
Living costs
One-bedroom rent averages $1,606 a month in Colorado and $1,051 in New Mexico, so New Mexico is $556 a month cheaper for housing. Food costs $3,436 a year in both, because the USDA Thrifty Food Plan is a national figure; home energy $1,987 and $1,860, and gasoline $1,451 and $1,397. Together the basics cost $26,151 a year in Colorado and $19,299 in New Mexico.
What the Census adds
Median household income is $95,470 in Colorado and $64,059 in New Mexico. Homeowners pay a median of $2,602 a year in property tax in Colorado and $1,731 in New Mexico. Commuters travel 25.2 minutes each way on average in Colorado and 23.5 in New Mexico.
Method
Taxes use the 2025 rules for a single filer with wage income only and the standard deduction. Housing and living costs are county figures from HUD (one-bedroom Fair Market Rent), the USDA Thrifty Food Plan and state energy prices from the Energy Information Administration, averaged across each state's counties and weighted by population, so large counties count more. Local income taxes are not included. Counties differ widely inside every state, so use the county pages for a specific place.