The City of Santa Fe announced on April 28 that the threshold for the High-End Excise Tax will increase to $1,029,000.00 effective May 1, following a 2.9 percent adjustment based on the Consumer Price Index for calendar year 2025.
This change is part of an ordinance designed to provide a steady source of funding for Santa Fe’s affordable housing fund. The excise tax applies at a rate of three percent but only affects the portion of a property’s sale price that exceeds the new threshold. Certain transactions are exempt as outlined in the ordinance.
According to city officials, the threshold will be reviewed every year on May 1 and adjusted depending on changes in the Consumer Price Index. If there is no increase in the index during any given year, then the threshold will remain unchanged.
More information about how this tax supports affordable housing and details about exemptions can be found through city resources.
The annual review process aims to ensure that adjustments reflect current economic conditions while maintaining support for affordable housing initiatives.
