T&D will repair a water leak in the 2300 block of Calle Alvarado from 3:30 p.m. to 11:00 p.m.
Approximately 30 homes will be without water during repairs.
Road closure: Calle Alvarado from Calle Espejo to Calle Cacique St.

Finance Department

If you have questions or feedback on the administrative rule that the draft materials do not address, please email excisetax@santafenm.gov

High-End Excise Tax New Threshold for 2026

Effective May 1, 2026, the High-End Excise Tax new threshold amount will be adjusted by 2.9%, based on the Consumer Price Index (CPI) for calendar year 2025. This results in an increased threshold for home purchase price of $1,029,000.00 for which the tax applies.

The purpose of the ordinance is to establish a dedicated and enduring source of funding for the city’s affordable housing fund by imposing an excise tax of three percent (3%) on the portion of consideration exceeding one million twenty-nine thousand dollars ($1,029,000.00) paid for each conveyance of ownership of real property located within the City, except for those transactions specifically exempted under this ordinance.

Beginning May 1, 2026, and on May 1st thereafter, the threshold will be adjusted unless the consumer price index does not increase during the prior year the threshold amount will remain the same.

What is the High-End Excise Tax?

The High-End Excise Tax for Affordable Housing Ordinance (Chapter 18.18) is in effect as of Monday, October 27, 2025. Santa Fe voters overwhelmingly supported this ballot measure in 2023 (73%), but a district court enjoined the ordinance before it went into effect. On Monday, October 27, 2025, the Court of Appeals ruled in the City’s favor and dissolved the injunction, resulting in the tax applying on or after that date to residential purchase transactions exceeding $1 million dollars. Purchasers of residential property pay a 3% tax on the sale amount over $1,000,000. All the funds generated from this excise tax will go into the Affordable Housing Trust Fund.

 

Where does the tax go?

The City of Santa Fe created the Affordable Housing Trust Fund (AHTF) by ordinance in 2007. This ordinance follows state law, the New Mexico Housing Act, to support various affordable housing needs. The City releases an annual funding opportunity to support projects such as:

  • Homeownership assistance
  • Affordable Housing Development and Construction
  • Rental Assistance for low-income renters
  • Acquisition, Conversion, Rehabilitation, or other Preservation costs for existing structures

The City of Santa Fe passed an ordinance (18-18) in the Fall of 2023 to create a dedicated funding stream using this excise tax. Please see the Office of Affordable Housing’s web page for more information about the AHTF or view the ordinance (AHTF City Code 26.3)

 

Documents