Best Cities for Small Business in New Mexico
New Mexico ranks #47 of 50 for small business, with a small business score of 34.6. Los Alamos is its best city for small business at 80.7.
- New Mexico, all states
- #47 of 50
- Population
- 13,317
What Small Business Should Know About New Mexico
New Mexico ranks #47 out of 50 for small business owners and entrepreneurs, presenting some challenges for business formation and growth. The state's fiscal health score of 62/100 is adequate, though fiscal conditions aren't a standout advantage.
Tax policy directly impacts the bottom line. New Mexico's overall tax burden is 9.62% of income, with a 5.9% income tax rate that applies to both personal and pass-through business income. The 7.67% combined sales tax rate is on the higher side and worth factoring into pricing strategy. The economic environment (score: 32/100) with 4.2% unemployment shows healthy labor availability.
Declining population (-0.06%) is a headwind for customer-dependent businesses, though it can reduce competition. Workforce quality may require investment in training — the education score of 7/100 suggests gaps in preparation. A typical home value of $318,241 is manageable for employees at typical small-business salary levels.
All 20 Cities Ranked for Small Business
| # City | Grade | Small Business score | Overall | Household finances | Economy | Growth | Population |
|---|---|---|---|---|---|---|---|
| 1Los Alamos | A+ | 80.7 | 75.8 | 94 | 92 | — | 13,317 |
| 2Rio Rancho | B+ | 59.1 | 59.6 | 66 | 59 | 59 | 108,515 |
| 3Santa Fe | B | 51.5 | 57.0 | 48 | 55 | 38 | 89,019 |
| 4Carlsbad | C | 51.4 | 50.0 | 46 | 56 | 56 | 31,746 |
| 5Los Lunas | C | 46.6 | 49.2 | 34 | 24 | 73 | 18,618 |
| 6Albuquerque | D | 46.6 | 48.8 | 41 | 50 | 38 | 562,218 |
| 7Hobbs | D | 45.9 | 48.4 | 32 | 51 | 47 | 40,252 |
| 8Farmington | D | 45.6 | 47.9 | 38 | 49 | 39 | 46,314 |
| 9Artesia | D | 45.4 | 48.5 | 44 | 35 | 40 | 12,576 |
| 10Alamogordo | C | 44.8 | 49.6 | 34 | 44 | 36 | 31,307 |
| 11Las Cruces | C | 43.5 | 49.0 | 23 | 43 | 47 | 114,197 |
| 12Sunland Park | D | 41.9 | 48.8 | 26 | 24 | 43 | 17,463 |
| 13Clovis | C | 40.6 | 49.6 | 24 | 47 | 27 | 37,942 |
| 14Roswell | D | 37.4 | 44.6 | 15 | 41 | 33 | 47,638 |
| 15South Valley | D | 36.7 | 43.7 | 31 | 20 | — | 37,120 |
| 16Portales | F | 28.0 | 42.5 | 10 | 14 | 17 | 11,968 |
| 17Gallup | F | 27.7 | 36.6 | 16 | 20 | 9 | 21,023 |
| 18Chaparral | F | 27.6 | 36.3 | 10 | 10 | — | 18,186 |
| 19Las Vegas | F | 26.0 | 38.0 | 4 | 9 | 11 | 13,000 |
| 20Deming | F | 21.5 | 36.7 | 0 | 0 | 11 | 15,221 |
City small business scores use each city's own data, with the category weights rescaled over the categories the city has; outdoor access has no city-level measure and is left out.
Compare: States with Similar Small Business Rankings
Also See: New Mexico for Other Lifestyles
Frequently Asked Questions
Is New Mexico a good state for small business?
New Mexico ranks #47 out of 50 for small business with a persona-weighted score of 34.6/100. Its strongest relevant category is Affordability (81/100) and its weakest is Education (7/100).
What is the best city for small business in New Mexico?
Los Alamos ranks #1 in New Mexico for small business with a score of 80.7/100, followed by Rio Rancho and Santa Fe.
What factors are most important for small business in New Mexico?
Rankings weighted toward business-friendly tax climate, strong economy, population growth, workforce quality, and transportation infrastructure — what matters when starting or running a small business.