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Updated 2025 Tax Year

McKinley County
Property Tax Guide

Everything you need to know about property taxes in McKinley County, NM. Rates, due dates, exemptions, and how it affects your monthly payment.

10 Official Sources
8 min read
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Quick Facts
Tax Rate
0.85% base rate, varies significantly by special taxing districts within county
Exemptions
4+ Available
Section 1

How Property Tax Works

McKinley County property taxes are administered by the County Assessor's office and fund essential local services including schools, county operations, public safety, and infrastructure maintenance. The property tax system in McKinley County operates on an assessed value basis, where properties are valued at approximately one-third of their market value for residential properties. For the 2025 tax year, McKinley County has set a base property tax rate of 0.85%, though actual rates vary significantly by location within the county due to special taxing districts.

Property owners throughout McKinley County should understand that their effective tax rate depends on their specific location and which special taxing districts serve their property. These districts may include school districts, fire districts, hospital districts, and other local improvement districts, each with their own additional levies. The total combined rate can vary considerably across different areas of the county, making it important for property owners to verify their specific tax obligations based on their property's location and applicable district assessments.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
McKinley County Base Levy0.85%Base county operations, approved October 2024 for FY 2025-2026
School District LevyVariesDepends on specific school district boundaries
Municipal LevyVariesApplied to properties within city/town limits
Special District AssessmentsVariesFire districts, hospital districts, improvement districts
Bond AssessmentsVariesVoter-approved bond measures for infrastructure

Note: The actual property tax rate varies significantly by location within McKinley County due to different combinations of special taxing districts. Property owners should verify their specific rate by contacting the McKinley County Assessor's office or checking their most recent property tax statement. The 0.85% base rate applies to the FY 2025-2026 levy year, with additional district assessments layered on top of this base rate depending on property location.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in McKinley County, property taxes are due in two installments:

Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental property taxes in McKinley County are triggered by specific events that change the assessed value of a property during the tax year. The most common triggers include change of ownership, completion of new construction, or significant improvements to existing properties. When these events occur, the County Assessor recalculates the property's assessed value and issues a supplemental tax bill for the difference between the old and new assessments, prorated for the remaining portion of the tax year.

For example, if a property sells in June for $400,000 and was previously assessed at $300,000, the new assessment would be based on the sale price. The supplemental tax would be calculated on the increased assessed value ($100,000 difference) for the remaining 6 months of the tax year. This supplemental assessment would be in addition to the regular annual property tax bill and would be due within 30 days of the supplemental tax notice being mailed.

Example Calculation

Example 1: $300,000 Home

  • Market Value: $300,000
  • Assessed Value (33.3%): $100,000
  • Applied Tax Credits: $0 (assuming no applications filed)
  • Net Taxable Value: $100,000
  • Annual Tax (0.85% base rate): $850
  • Monthly Escrow: $71

Example 2: $600,000 Home with Veteran Credit

  • Market Value: $600,000
  • Assessed Value (33.3%): $200,000
  • Applied Veteran Tax Credit: -$4,000 (application required)
  • Net Taxable Value: $196,000
  • Annual Tax (0.85% base rate): $1,666
  • Monthly Escrow: $139

Example 3: $1,000,000 Home with Multiple Credits

  • Market Value: $1,000,000
  • Assessed Value (33.3%): $333,000
  • Applied Homestead Credit: -$2,000 (application required)
  • Applied Senior Credit: -$1,500 (application required)
  • Net Taxable Value: $329,500
  • Annual Tax (0.85% base rate): $2,801
  • Monthly Escrow: $233

Note: These examples use the base county rate only. Actual rates will be higher due to school district, municipal, and special district assessments. All tax credits require separate applications and are not automatically applied.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in McKinley County require borrowers to maintain an escrow account for property tax payments, particularly for loans with less than 20% down payment. The lender collects monthly escrow payments along with principal and interest, then pays property taxes directly to McKinley County when due. Escrow payments are calculated by dividing the annual tax bill by 12 months, with lenders typically maintaining a cushion of 1-2 months to account for potential tax increases.

Property tax payments in McKinley County are due in two installments: the first half due April 10th and the second half due May 10th. Lenders monitor these due dates and ensure payments are made on time to avoid penalties. Property owners should verify that their lender has current contact information and review their annual escrow analysis statement to ensure adequate funds are being collected. If property taxes increase due to reassessment or new special district levies, the lender will adjust monthly escrow payments accordingly and may require additional deposits to cover shortfalls.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
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  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are McKinley County property taxes due for FY 2025-2026? A: Property taxes are due in two installments: first half due April 10, 2025, and second half due May 10, 2025. Payments received after these dates are subject to penalty and interest charges.

Q: What tax credits are available in McKinley County and do they require applications? A: Available tax credits include veteran credits, senior citizen credits, and homestead credits. All tax credits require separate applications and are NOT automatically applied. Applications must be filed with the McKinley County Assessor's office by specified deadlines.

Q: How does the homestead credit work in McKinley County? A: The homestead credit in New Mexico limits annual assessment increases rather than reducing market value. This credit caps the amount your property's assessed value can increase each year, providing protection against rapid assessment growth. You must file an application to receive this benefit.

Q: How often are properties reassessed in McKinley County? A: Properties are subject to annual review, though comprehensive revaluations may occur every few years. Property owners receive a Notice of Valuation (NOV) annually showing the assessed value. Appeals must be filed within 30 days of receiving the NOV.

Q: What are the penalties for late property tax payments? A: Late payments are subject to penalty and interest charges that accrue monthly. The penalty structure begins immediately after the due date and compounds over time, making prompt payment important to avoid additional costs.

Q: Can I pay McKinley County property taxes online? A: Contact the McKinley County Treasurer's office to verify current online payment options and accepted payment methods. Many counties offer online payment systems for convenience.

Q: How do special taxing districts affect my property tax bill? A: Special districts such as school districts, fire districts, and improvement districts each have separate tax levies that are added to the base county rate. Your total rate depends on which districts serve your specific property location.

Q: What triggers a supplemental tax assessment in McKinley County? A: Supplemental assessments are triggered by change of ownership, completion of new construction, or major property improvements. These result in additional tax bills prorated for the remaining portion of the tax year.

Verified Sources

Backed by 10 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

01
County
County Net Taxable Valuesnmdfa.state.nm.us
02
County
8th, October 2024 - McKinley Countyco.mckinley.nm.us
03
County
County Data Classificationnmlegis.gov
04
County
Calendar • McKinley County, NM • CivicEngageco.mckinley.nm.us
05
County
Calendar • McKinley County, NM • CivicEngageco.mckinley.nm.us
06
County
Treasurer Calendar | McKinley County, NMco.mckinley.nm.us
07
Tax Doc
Property Tax Exemptions Under the New Mexico property tax ...co.mckinley.nm.us
08
Tax Doc
Property Taxes in New Mexiconmlegis.gov
09
F I S C A L I M P A C T R E P O R Tnmlegis.gov
10
relating to general obligation bondsnmlegis.gov
All sources verified as of 2025 Tax Year

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