Investing in Our Community: The Affordable Housing Excise Tax
To address Santa Fe’s growing need for affordable homes, voters approved a local measure creating a sustainable funding source for the Affordable Housing Trust Fund.
The High-End Excise Tax for Affordable Housing is a 3% tax on the portion of a residential sale price over $1 million, paid by the seller at closing.
Example:
If a home sells for $1.5 million, the tax applies only to the amount above $1 million:
| Home Sale Price | Amount Above $1M | Tax Rate | Tax Owed |
|---|---|---|---|
| $1,000,000 or less | – | – | $0 - No tax |
| $1,500,000 | $500,000 | 3% | $15,000 |
$1,500,000 − $1,000,000 = $500,000 → 3% of $500,000 = $15,000 tax owed
Homes selling for $1 million or less are not taxed.
Every dollar generated goes directly into the City’s Affordable Housing Trust Fund, which supports:
- Building and preserving affordable rental and for-sale homes
- Down payment assistance for first-time homebuyers
- Rental assistance and eviction prevention programs
- Home repair programs for low-income families and seniors
- Land acquisition for future affordable housing projects
This community-driven initiative helps ensure that teachers, first responders, service workers, and longtime residents can continue to call Santa Fe home.
Learn more on the Finance Department’s Excise Tax page
Or contact us here: excisetax@santafenm.gov