New Mexico’s natural beauty, abundant land, and relatively affordable cost of living draw many to the state. Santa Fe, the oldest state capital in the United States, is a cultural destination for art and architecture. New Mexico’s top business tax rate of 5.9% is near the median of all states, while its 5% sales tax (known in New Mexico as a gross receipts tax) is near the national average at 5.09%.
Downsides include New Mexico’s small population and poorly performing public education system. You may find a more abundant, well-trained workforce in neighboring states like Colorado. While the Albuquerque–Santa Fe area is teeming and growing, the rest of the state is sparsely populated, which may limit business opportunities.