Closing costs by state
Closing costs in New Mexico
Closing costs in New Mexico run about 2% to 5% of the price for a buyer, made of lender fees, title and settlement, recording, prepaid interest and escrow reserves; on a $400,000 home the worked example below comes to $10,055. New Mexico has no state-level real estate transfer tax.
Last verified ·Sources:nmlegis.gov·nmlegis.gov·tax.newmexico.gov·rld.nm.gov
The rules
What New Mexico does differently
- State transfer tax
- None at the state level.
- Who pays it
- Not applicable.
- County and city add-ons
- None enacted. County clerks charge a flat $25 recording fee per document (NMSA § 14-8-15). Bills to create a state transfer tax (2008 SB 160, 2021 HB 19) did not pass.
- Attorney at closing
- New Mexico does not require an attorney at closing; a title or escrow company usually conducts it, and an attorney is optional.
- Owner’s title policy
- The seller customarily pays for the owner’s title insurance policy in New Mexico; the buyer pays for the lender’s policy.
- Notes
- The Legislative Finance Committee's fiscal report on 2008 SB 160 states New Mexico is among the states without a transfer tax, and the Taxation and Revenue Department's list of taxes has none. Title and escrow companies conduct closings; the seller commonly pays the owner's policy.
- nmlegis.gov — “Some type of transfer tax is in effect in all but 13 states (see attached table). New Mexico is one of those states”
- nmlegis.gov — “AN ACT RELATING TO TAXATION; ENACTING THE REAL ESTATE TRANSFER TAX ACT”
- tax.newmexico.gov — “Types of Taxes: Compensating Tax, Gross Receipts Tax, ... Personal Income Tax, Property Tax”
- rld.nm.gov — “Title companies typically provide what is referred to as 'escrow closing services' by 'escrow closing agents.'”
Worked example
A $400,000 home in New Mexico, 20% down
Loan of $320,000 at 6.5%, closing on the 15th. Lender, title and recording figures are typical line items used for illustration, the same on every state page; the transfer tax and the owner’s policy side follow New Mexico’s rules above. Not a quote: the calculator takes your own figures.
Buyer pays
| Loan origination, 1% of the loan | $3,200 |
| Appraisal | $550 |
| Title and settlement services | $1,800 |
| Lender’s title policy | $900 |
| Recording | $150 |
| Prepaid interest, 15 days at 6.5% | $855 |
| Escrow reserve, 3 months of tax at 1.1% | $1,100 |
| First year of homeowners insurance | $1,500 |
| Total (2.514% of price) | $10,055 |
Seller pays
| Commission, 5% | $20,000 |
| Title and escrow fees | $2,000 |
| Owner’s title policy (estimate) | $1,500 |
| Prorated property tax | $1,500 |
| Total | $25,000 |
Questions
What people ask about New Mexico
- Who pays the transfer tax in New Mexico?
- New Mexico has no state-level real estate transfer tax.
- Do you need an attorney to close on a house in New Mexico?
- New Mexico does not require an attorney at closing; a title or escrow company usually conducts it, and an attorney is optional.
- Who pays for the owner’s title policy in New Mexico?
- The seller customarily pays for the owner’s title insurance policy in New Mexico; the buyer pays for the lender’s policy.
- How much are seller closing costs in New Mexico?
- On a $400,000 sale with a 5% commission, the worked example on this page comes to $25,000 for the seller, before the mortgage payoff and any concessions or repairs. The seller net sheet calculator shows the walk-away figure.
Last reviewed September 8, 2026 by the EstatePass editorial team. Formulas and program limits are checked against the published rules; figures on this page are arithmetic, not market statistics.
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