The $100,000 Salary Analysis for Hobbs

This guide analyzes the real purchasing power of a $100,000 salary in Hobbs, New Mexico. Numbers are estimates based on 2023-2024 tax brackets and local market data. No fluff, just the math.

1. The Verification Test

A $100,000 salary is not what lands in your bank account. Here is the breakdown of what you actually lose before you see a dime.

• Gross Salary: $100,000
• Federal Tax: Approximately $14,000 (Standard deduction, Single Filer).
• FICA (Social Security & Medicare): $7,650.
• New Mexico State Income Tax: New Mexico uses a graduated bracket system. For this income level, estimate $4,800 (Rate effectively ~4.8%).
• Total Deductions: $26,450

Estimated Net Pay (Annual): $73,550
Estimated Net Pay (Monthly): $6,129

2. Smart Budget (50/30/20)

Using the monthly net pay of $6,129, here is how a standard budget looks in Hobbs.

Needs (50% = $3,064)

• Rent (1BR Market Avg): $900 - $1,100. (Note: "None" implies ownership; if renting, this is the current reality).
• Utilities: $200 - $300 (Electricity, Water, Internet).
• Groceries: $400 - $500.
• Transportation: $300 - $500 (Gas/Insurance).

Wants (30% = $1,838)

• Dining, entertainment, subscriptions, and discretionary spending.

Savings & Debt (20% = $1,225)

• Retirement contributions, student loans, or emergency fund.

3. Hobbs Tax Context

New Mexico is not a tax haven.

• Vs. Texas/Florida: You are paying roughly $4,800 more in state income tax annually than you would in a no-tax state.
• Vs. California/NY: You are saving roughly $5,000 - $8,000 annually in state income tax compared to high-tax coastal states.

Verdict: New Mexico offers a middle-ground tax burden. It erodes your nominal salary, but the low cost of living in Hobbs helps offset the tax bleed.

4. FAQ

"Is $100k good here?"
Yes. While the nominal salary is high, the purchasing power in Hobbs is strong due to low housing costs. You will live comfortably compared to the national average, but do not mistake gross income for disposable wealth.

"Local income tax?"
No. Hobbs (Lea County) does not levy a local income tax. Your tax burden is strictly Federal and New Mexico State.