New Mexico Veteran Benefits
Complete guide to state benefits for New Mexico veterans in 2026
New Mexico Military Retirement Tax
New Mexico offers significant military retirement exemption for those 65+ or 100% disabled. VA disability is tax-free under federal law.
New Mexico Veteran Benefits Summary: New Mexico offers military retirement exemption (up to $30,000 for 65+), property tax exemptions for disabled veterans ($4,000 for wartime, more for disabled), and education benefits. New Mexico has approximately 150,000 veterans.
State Income Tax
Military retirement (65+): Up to $30,000 exempt
100% disabled: Full exemption
VA disability: Tax-free (federal law)
Property Tax
- Wartime veteran: $4,000 exemption
- 100% disabled: Full exemption
Education
- Free tuition: For wartime veterans
- Children's scholarship: For dependents
Employment
- Veterans' Preference: 10 points
2026 BAH Rates for New Mexico
| Installation | E-5 w/Dep |
|---|---|
| Kirtland AFB | $1,689 |
| Holloman AFB | $1,317 |
| Cannon AFB | $1,143 |