NM · Tax Year 2026
How New Mexico taxes Social Security, pensions, 401(k)/IRA withdrawals, and military retirement pay in 2026.
Up to $8,000 general exemption per eligible elderly/blind person; military retirement $30,000
Age 65+ for elderly exemption
Additional Notes
Social Security exempt subject to AGI limits; unlimited military proposal not enacted
Does New Mexico tax Social Security benefits?
It depends. New Mexico offers partial exemption for Social Security — eligibility is typically income-based or age-based. See the details above.
Does New Mexico tax pension income?
Partially. New Mexico provides exemptions for certain types of pension income — often public, government, or military pensions — while private pensions may be partially or fully taxable. See eligibility details above.
Does New Mexico tax 401(k) and IRA withdrawals?
Yes, traditional 401(k) and IRA withdrawals are generally taxable in New Mexico. However, exclusions or credits may apply depending on your age and income — review the details above.
Is New Mexico a tax-friendly state for retirees?
It depends on your income mix. New Mexico offers some retirement income relief, but the rules vary by income type and eligibility. Review the details above and consider consulting a tax professional for your specific situation.
Partner Services
Planning your retirement location involves more than state taxes. Compare states, model income scenarios, and get personalized advice from a fiduciary financial planner.
DataTactic may earn a referral fee from partner services. Data on this page is independent and unaffected by partnerships.
Data Source
Official New Mexico state tax authority guidance. Tax year 2026. Some annually indexed thresholds may not yet be finalized — confirm with the state revenue department before filing.
Related for New Mexico
Data reflects tax year 2026 rules sourced from official New Mexico state tax authorities. This page is for informational purposes only — always confirm current rules with the state revenue department or a qualified tax professional before making financial or relocation decisions.