Lifestyle
You might know New Mexico from the TV show Breaking Bad, but television only offers a narrow view of what life in the Land of Enchantment is like. From vast national forests to one-of-a-kind art museums, New Mexico is a wonderful place for retirees to settle down. The state boasts a mild climate, lower cost-of-living, and lots of cultural activities for seniors to enjoy, with towns and cities featuring eccentric architecture and numerous outdoor recreation opportunities.
C.E Larusso
Published December 4th, 2025
C.E Larusso
•
Published December 4th, 2025
Table of Contents
Key Takeaways
Retirees can enjoy New Mexico’s wonderful qualities while living in one of its many charming small towns and cities.
Tourists and residents flock to New Mexico for its outdoor recreation, bewitching landscape, and arts scene.
Seniors who wish to live somewhere with a mild climate should consider New Mexico, which also has bountiful outdoor recreation opportunities.
Is New Mexico a good place to live for retirees?
There are many reasons New Mexico can be a wonderful place for retirees to live. It has a lower cost-of-living than most of the country, as well as affordable housing. Its mild, dry, desert climate is appealing to seniors who don’t want to deal with snowstorms and freezing temperatures. In addition, many of the small towns and cities have unique and tight-knit communities, allowing residents to feel supported.
Some of the drawbacks include an overall higher crime rate than the national average, as well as mediocre tax benefits for seniors. Because the state has fewer metropolitan areas than others, some retirees may find that healthcare facilities with specialists are difficult to find.
Is New Mexico tax-friendly for seniors?
New Mexico is moderately tax-friendly. The state will tax Social Security, but it offers deductions on that income as well: there is an $8,000 deduction on retirement income if the adjusted gross income is less than $28,500 for single filers or $51,000 for married people filing jointly. Those 65 or older can also claim a refundable medical care credit of $2,800 if they have uncompensated medical care expenses exceeding $28,000.
Do seniors in New Mexico pay property taxes over 65?
Most seniors over 65 will pay property taxes in New Mexico, however the state has a special program: seniors with income below $41,900 can apply to have their property assessment frozen, in order to limit the property taxes owed. The average effective property tax in New Mexico is 0.74%, with most homeowners paying around $1,500.
What benefits do seniors get in New Mexico?
New Mexico offers a number of special benefits for seniors, including Centennial Care, which reduces the cost of nursing home care. Through the Community Benefit Program—also run through Centennial Care—seniors can opt to receive at-home assistance rather than move to a nursing facility. This assistance includes nutritional counseling, physical therapy, transportation, personal emergency response systems, and more.
Where is the best place to retire in New Mexico?
Famed for its red and green chile peppers, hot air balloons, and unique desert landscape, New Mexico is home to many small cities and towns that retirees love to call home. It’s a state with an increasing number of seniors, helping those in their golden years feel welcome and surrounded by community. Read on to learn about the best places to retire in New Mexico in 2025.
1. Santa Fe
CITY POPULATION: 91,254
SHARE OF POPULATION 65+: 27%
COST OF LIVING FOR RETIREES: 12% above the national average
MEDIAN HOME VALUE: $579,625
MEDIAN RENT: $2,400
TAX RATING FOR RETIREES: Moderately Tax Friendly
While Santa Fe has a bustling tourism circuit, it still has a small city feel with plenty to do if you love the arts—it has several museums, including one dedicated to the work of Georgia O’Keefe. Being a popular destination, it has excellent dining options as well, and is known for its historic and striking Pueblo Revival architecture.
2. Las Cruces
CITY POPULATION: 114,891
SHARE OF POPULATION 65+: 17%
COST OF LIVING FOR RETIREES: 16% below the national average
MEDIAN HOME VALUE: $287,927
MEDIAN RENT: $1,495
TAX RATING FOR RETIREES: Moderately Tax Friendly
Las Cruces is ideal for retirees who crave mild weather; the growing city has 290 days of sunshine. It sits at the base of the Organ Mountains and has views of the high desert in nearly every direction, with outdoor recreation to match: locals love hiking, biking, golfing and more. Nearby New Mexico State University offers live performances and other amenities.
3. Silver City
CITY POPULATION: 9,574
SHARE OF POPULATION 65+: 25%
COST OF LIVING FOR RETIREES: 25% below the national average
MEDIAN HOME VALUE: $219,464
MEDIAN RENT: $900
TAX RATING FOR RETIREES: Moderately Tax Friendly
Located in the southern part of the state, Silver City is another city that has excellent outdoor recreation. The Gila National Forest is nearby, offering plenty of places to camp, hike, and fish. Silver City has a lower cost-of-living than most other places on this list, but still offers plenty of amenities to make retirement pleasant and easy.
4. Corrales
CITY POPULATION: 8,557
SHARE OF POPULATION 65+: 36%
COST OF LIVING FOR RETIREES: 5% below the national average
MEDIAN HOME VALUE: $692,158
MEDIAN RENT: $2,200
TAX RATING FOR RETIREES: Moderately Tax Friendly
Corrales is a smaller village, but is close to the larger metropolitan area of Albuquerque, giving retirees easy access to healthcare facilities, great dining options, and cultural activities. Corrales also has a large retirement community, with over 35% of the population age 65 or older.
5. Taos
COUNTY POPULATION: 6,468
SHARE OF POPULATION 65+: 33%
COST OF LIVING FOR RETIREES: 4% below the national average
MEDIAN HOME VALUE: $422,186
MEDIAN RENT: $1,895
TAX RATING FOR RETIREES: Moderately Tax Friendly
Situated near the Sangre de Cristo Mountains, Taos is a town with a small population—a little over 6,000 residents—and a bustling art scene, with many artists taking up residence there. The Harwood Museum of Art is the second oldest in New Mexico and has an impressive collection; after a long day at the museum, seniors can unwind at some of the nearby hot springs.
6. Alamogordo
CITY POPULATION: 31,063
SHARE OF POPULATION 65+: 19%
COST OF LIVING FOR RETIREES: 24% below the national average
MEDIAN HOME VALUE: $218,420
MEDIAN RENT: $1,200
TAX RATING FOR RETIREES: Moderately Tax Friendly
Alamogordo is a small, hidden gem of New Mexico. Located in the state’s south-central region, it has plenty of warm days and mild winters with average temperatures in the 50s. A military town, Alamogordo is also home to a New Mexico State University campus, where seniors can take many continuing education classes to keep their minds sharp.
7. Roswell
CITY POPULATION: 47,823
SHARE OF POPULATION 65+: 16%
COST OF LIVING FOR RETIREES: 28% below the national average
MEDIAN HOME VALUE: $169,553
MEDIAN RENT: $1,300
TAX RATING FOR RETIREES: Moderately Tax Friendly
Roswell has quite a serious reputation, as the supposed site of a UFO crash, but the city has more than its legend: miles of outdoor recreation areas, a thriving arts scene, a zoo, and more. The city is the fifth-largest in New Mexico, so it’s got enough hustle-and-bustle for seniors without feeling overwhelming.
8. Ruidoso
CITY POPULATION: 7,701
SHARE OF POPULATION 65+: 26%
COST OF LIVING FOR RETIREES: 11% below the national average
MEDIAN HOME VALUE: $327,272
MEDIAN RENT: $1,600
TAX RATING FOR RETIREES: Moderately Tax Friendly
Ruidoso residents are outdoor enthusiasts—the town sits right next to Lincoln National Forest and is home to many lakes and parks for walks, hikes, bike rides, and picnics. It has a high population of those 65 and older, making retirees feel welcome. Seniors are also well-cared for, with Lincoln County Medical Center offering health services.
9. Artesia
CITY POPULATION: 12,555
SHARE OF POPULATION 65+: 12%
COST OF LIVING FOR RETIREES: 22% below the national average
MEDIAN HOME VALUE: $224,406
MEDIAN RENT: $2,350
TAX RATING FOR RETIREES: Moderately Tax Friendly
Artesia is for retirees who want to live somewhere more rural. The quiet town, located in Eddy County, has a low crime rate and relatively low cost-of-living. Despite being outside of a major metropolis, the town has an excellent medical care facility—Artesia General Hospital—and is only about an hour from Roswell, if you need more robust care.
Bottom Line
Most places in New Mexico are on the smaller side, but each city and town has its own vibe, cost-of-living, amenities, and activities, from the art of Georgia O’Keefe found in Santa Fe to all that New Mexico State University offers in Las Cruces. To decide where in New Mexico you can afford to comfortably retire, it’s best to speak to a financial advisor at Retirable to review your investments and budget.
Share this advice
A professional content writer, C.E. Larusso has written about all things home, finance, family, and wellness for a variety of publications, including Angi, HomeLight, Noodle, and Mimi. She is based in Los Angeles.
Share this advice
A professional content writer, C.E. Larusso has written about all things home, finance, family, and wellness for a variety of publications, including Angi, HomeLight, Noodle, and Mimi. She is based in Los Angeles.
Free Retirement Consultation
Still have questions about how to properly plan for retirement? Speak with a licensed fiduciary for free.
