Updated January 2026
New Mexico Veteran Benefits 2026
New Mexico offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in NM for 2026.
New Mexico Highlights
- Partial military retirement tax exemption
- Full property tax exemption for 100% disabled
- Free hunting and fishing licenses for disabled veterans
- New Mexico Veterans Memorial
Income Tax Treatment
New Mexico has a state income tax.
Military Retirement Pay: New Mexico exempts up to $30,000 of military retirement pay through tax year 2026, after which the exemption is scheduled to sunset unless extended.
Active Duty Pay: Active duty pay may be partially exempt.
VA Disability Compensation: VA disability compensation is tax-free at both the federal and state level in all 50 states. New Mexico does not tax VA disability payments.
Property Tax Exemption for Disabled Veterans in New Mexico
Type: Graduated by disability rating
Following voter approval of Constitutional Amendment 1 in November 2024, New Mexico extended its disabled-veteran property tax exemption beyond the prior 100%-only rule. Implementing legislation (HB 47, 2025) creates a proportional exemption: a service-connected disabled veteran's principal residence is exempt from property tax in a percentage equal to the veteran's federal disability rating, taking effect for the 2026 tax year. Veterans rated 100% (or P&T) continue to receive a full exemption of their principal residence. Separately, the baseline (non-disability) veteran exemption increased from $4,000 to $10,000 of taxable value effective 2025, with future inflation adjustments.
| VA disability rating / category | What you get |
|---|---|
| 100% (P&T) | Full exemption of the veteran's principal residence from property tax (continues the pre-existing full exemption).Permanent service-connected disability per federal determination; property occupied as principal place of residence. Surviving spouse may continue. |
| Less than 100% (e.g., 10%-90%), beginning tax year 2026 | Proportional exemption: percentage of the residence's value exempt equals the veteran's federal disability rating percentage.Permanent service-connected disability per federal law; occupied as principal residence. New under 2024 Amendment 1 / HB 47; first applies to 2026 tax year. |
| Baseline veteran exemption (any honorably discharged veteran, no disability rating required) | $10,000 reduction of taxable value (raised from $4,000 effective 2025), inflation-adjusted in later years. This is separate from the disability exemption.Honorably discharged veteran (or surviving spouse). Applies to a residence or, in some cases, other property; one exemption per person. |
- Income limit: None for the disabled-veteran exemption or the baseline veteran exemption.
- Age requirement: None.
- Surviving spouse: Eligible. The constitutional provision and statute extend the disabled-veteran exemption to the unremarried widow or widower of a qualifying disabled veteran; the baseline veteran exemption also extends to surviving spouses.
- Counts being paid at 100% via unemployability (TDIU)? Varies / not explicitly addressed — confirm with the assessor or state VA
Source: N.M. Const. art. VIII, sec. 5 & sec. 15 (disabled veteran); N.M. Stat. Ann. sec. 7-37-5.1 (disabled veteran exemption) and 7-37-5 (veteran exemption); 2025 HB 47. and a second official source. Verified June 2026 against primary sources.
To apply, contact your county assessor's office or the New Mexico Department of Veterans Affairs. You will typically need your VA disability rating letter (and often your DD‑214) and proof that the home is your primary residence.
Real estate vs. personal property: this benefit applies to real-estate (home/homestead) property tax. Personal-property taxes — such as the annual tax some states levy on vehicles — are separate and generally still apply, even at a 100% rating, unless your state specifically exempts them.
VA Healthcare in New Mexico
New Mexico has approximately 2 VA medical centers along with community-based outpatient clinics (CBOCs) throughout the state. Veterans enrolled in VA healthcare can receive care at any VA facility nationwide.
To find the nearest VA facility, visit VA.gov Facility Locator.