New Mexico Beats Texas As State That Keeps More Money

A new study shows which states allow you to keep the most of your money. Texas didn't do great, New Mexico barely edged us out.

Ever wonder which state allows residents to keep the most of their money? Visual Capitalist just answered the question and, guess what? New Mexico peeps don't get to keep much. They still beat Texas by about 11% though.

When it comes to the amount of money folks have left after living expenses; the top 2, (Iowa and South Dakota), only hold on to about 37% of their income.

To oversimplify it, that means if the the top 2 states made a dollar, things like bills, rent, food would eat up 63 cents of it. That doesn't leave much for extras or savings but, they're still doing better than Texas and New Mexico.

What Basic Necessities Were Factored In?

This table shows the share of income left for a median-income family of four in 2025, after accounting for shelter, utilities, groceries, health and car insurance, childcare, and gas. Taxes reflect combined state and federal income taxes. - visualcapitalist.com

READ MORE: Texas Is Way More Fun Than New Mexico

States Where People Keep The Most Of Their Income

New Mexico made the top 15, (we were 35), but didn't beat Texas by much. Texans get to keep about 23.6% of their income while New Mexicans keep about 27.7%. The national average is 24.7%.

That difference is slight but most of the US states are within decimal points of each other. That made the percentage difference between Texas and New Mexico very small but the ranking difference is huge - New Mexico is 20 places ahead of Texas.

See where all 50 states rank here.

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