New Mexico Demographics, Healthcare, and Income Tax
New Mexico, according to the 2020 census, has a population of 2,117,522. Despite a modest growth rate of 2.8% over the past decade, which lags behind the national growth rate of 7.4%, New Mexico remains a diverse and culturally rich state. This growth has been concentrated largely in five counties—Bernalillo, Santa Fe, Dona Ana, Sandoval, and San Juan—which collectively account for 1,321,323 of the state’s residents.
Understanding the New Mexico Economy
Demographic Overview
New Mexico is notable for its significant Latino or Hispanic population, which comprises 47.7% of the total population—the highest percentage of any state in the U.S. Additionally, New Mexico ranks third nationally in the percentage of Native American or Indigenous people, following Alaska and Oklahoma.
Healthcare Coverage: Medicaid and Medicare
Healthcare coverage in New Mexico is substantial, with a significant portion of the population reliant on Medicaid and Medicare. As of December 2023, 804,856 individuals were enrolled in Medicaid, including those in the Children’s Health Insurance Program (CHIP). This figure represents nearly 38% of the state’s population. Medicaid in New Mexico requires recipients to meet one of eight poverty criteria to qualify for coverage. It’s noteworthy that 66% of Medicaid recipients in the state are employed, underscoring the importance of this program for working families.
In addition, over 452,000 New Mexicans, or approximately 21% of the population, are enrolled in Medicare. When combined, the total number of individuals on Medicaid and Medicare is 1,256,855, accounting for nearly 60% of the state’s population.
New Mexico’s Income Tax Landscape
The personal income tax data provides insight into the economic landscape of New Mexico. Out of 1,004,047 tax filers, 576,643, or 5% of the population, paid no income tax. A substantial portion, 305,081 filers, reported an income between $25,000 and $100,000, representing 30.3% of the population. Meanwhile, 122,323 individuals, or 12.19% of the population, earned more than $100,000. This group contributed 56.23% of all state income taxes, highlighting a significant concentration of tax burden among higher-income residents.
Workforce and Income Distribution
The workforce in New Mexico reflects a diverse range of incomes, with many residents falling into lower to middle-income brackets. Despite the economic challenges, the state’s tax system ensures that those with higher incomes contribute a larger share of the total income tax revenue, supporting state-funded programs and services.
Shaping New Mexico’s Future
New Mexico’s demographic and economic profile is characterized by its diversity and significant reliance on state-supported healthcare programs. With a substantial portion of the population dependent on Medicaid and Medicare, the state’s policies on health coverage and income distribution remain critical to its socio-economic stability and growth. As New Mexico continues to evolve, understanding these dynamics will be essential for shaping future policies that promote equity and sustainability for all its residents.
About the Author: Scott Gates, CIC
Scott Gates is a seasoned insurance and risk advisor at HUB Southwest in Albuquerque, New Mexico, where he has dedicated 15 years to helping clients navigate the complexities of insurance.
Scott attended the University of New Mexico Anderson School of Management, earning a Bachelor of Business Administration in Marketing Research, and also holds the esteemed CIC designation as a certified insurance counselor. Scott combines his deep expertise of insurance and risk management with current market insights to serve his diverse clientele effectively.
An avid golfer and a passionate New Mexico Lobos fan, Scott brings the same enthusiasm and precision to his professional life as he does to his hobbies. His client portfolio is extensive and varied, including large government entities, oil and gas production companies, contractors, community housing programs, non-profits, attorneys, large real estate developers, golf courses, metal recyclers, waste haulers, and food industry retailers and suppliers.
Scott’s primary focus is on commercial property and casualty insurance, an area he describes as a complicated puzzle that he enjoys solving for his clients. His expertise and personalized approach ensure that each client receives tailored solutions to meet their unique needs, making him a trusted advisor in the industry.
For more information, contact Scott Gates.
