Menu

New Mexico Retirement Income Tax Calculator

New Mexico exempts Social Security only below $100,000 single / $150,000 joint AGI; pensions are taxed at 1.5%–5.9%.

Checked against sources 1 official source linked How we verify

New Mexico resident retirement worksheet

Use the year income is received, not the filing year. Later years use a separately approved assessment until the next return rules are verified.

Ordinary full-year New Mexico resident with actual federal AGI, distinct federally included Social Security and current approved senior / disability subtraction; contributions, military modifications and other deductions prepared separately. Special lump-sum tax and centenarian relief outside this ordinary worksheet.

Prepare actual resident filing status and ownership. A selector change does not split joint dollars or approve a deduction.

Federally included receipts after contribution basis and all other income; this is not gross retirement cash or federal taxable income.

Current conformity and other additions, prepared independently. Zero is a confirmed amount.

Exclude every retirement subtraction calculated here. Basis differences and protected railroad benefits require approval; no duplicate deduction.

Actual year, filing category and deduction eligibility. This illustration is an entered amount, not an automatic standard deduction.

Separate from withholding, estimated payments and refundable credits. Blank leaves after-credit tax unresolved.

Only federally included Social Security. Other protected railroad benefits use other approved subtraction.

Current age / disability and income-tested worksheet amount. Not automatically 8000 and not inferred from Social Security eligibility. Do not subtract this again through other modifications.

NM · 2026 scoped worksheet

Waiting on a figure

NM displayed annual tax estimate —
NM modeled taxable income
—
Calculated retirement subtractions
—
Included benefits subtracted
—
Qualified pension / IRA subtraction
—
Separate senior / disability subtraction
—
Modeled retirement / exemption credits
—
Estimate after other approved credits
—

Calculation scopeOrdinary full-year New Mexico resident with actual federal AGI, distinct federally included Social Security and current approved senior / disability subtraction; contributions, military modifications and other deductions prepared separately. Special lump-sum tax and centenarian relief outside this ordinary worksheet.

Illustrative defaults. Enter approved taxable amounts and confirm eligibility. The result covers the displayed worksheet conditions; a complete return may require other income, adjustments, deductions or credits.

Statutory graduated rates effective 2025; Social Security exemption strictly below 100000 single /150000 joint, head, surviving /75000 separate. Other approved deductions and senior relief entered distinctly Primary agency / statute sources independently reviewed October 2, 2026. Illustrative amounts require confirmation; final return, credits and special taxes remain separate.

Reviewed October 2, 2026. New Mexico: strict benefit limits and current graduated brackets

What New Mexico taxes in retirement

Partly taxed: limits by age, plan, owner or income apply. Military retirement is covered in the guide. How these labels work.

New Mexico: strict benefit limits and current graduated brackets

Calculate New Mexico’s current graduated tax and income-tested Social Security exemption, with separately approved senior/disability relief.

New Mexico’s Social Security exemption has strict federal-AGI thresholds. A single taxpayer needs AGI below $100,000; joint, head-of-household and qualifying surviving filers use below $150,000; married-separate filers use below $75,000. Exactly the threshold is outside the exemption. A withdrawal that raises AGI across the boundary can restore the entire federally included benefit amount to the modeled state base rather than merely reduce an allowance by the extra withdrawal.

The exemption subtracts the eligible benefit dollars included in federal AGI. Gross benefits already excluded federally are not deducted again. Keep ordinary pension and IRA distributions in federal income after recovering any approved contribution basis. Those payments are not exempt merely because Social Security qualifies. Add state conformity modifications and other approved subtractions in their own fields without repeating the benefit amount.

Signed 2024 House Bill 252 supplies the current brackets effective for 2025 and later years. The ordinary rates are 1.5%, 3.2%, 4.3%, 4.7%, 4.9% and 5.9%, with filing-category thresholds. For a joint retiree, the first three thresholds are $8,000, $25,000 and $50,000. A $50,000 taxable base therefore produces $120+$544+$1,075=$1,739 before credits. A top-rate multiplication would miss all three lower-rate steps.

The displayed resident illustration starts with $80,000 federal AGI, $20,000 federally included benefits, no other modifications and an independently entered $10,000 deduction. The benefit income test passes for a joint return, leaving $50,000 taxable. The separate age/disability subtraction is entered only after its own income and eligibility worksheet is prepared; being 65 does not automatically authorize an $8,000 subtraction at every household income.

Prepare military retirement and other lawful modifications separately. Special lump-sum distribution taxes, centenarian relief, nonresident income and a move during the year need the applicable full return. Leaving other nonrefundable credits blank keeps the after-credit total unresolved while retaining the before-credit estimate. Withholding and estimated payments belong to settlement, not to the subtraction or credit fields. Recheck both federal AGI and benefit inclusion when a distribution changes.

Prepare these New Mexico records

Official New Mexico source. Signed 2024 HB 252 section 5 effective 2025+; agency Social Security exemption guidance.

Calculate the federal portion separately

Use the federal retirement-tax worksheet to prepare federally included benefits and ordinary income. Its federal deduction and rates do not replace the New Mexico rules above.

Compare New Mexico with nearby states

Arizona, Colorado, Oklahoma and Texas border New Mexico. Run each one’s worksheet with the same household figures before deciding where a move would leave you.

Retirement tax calculators for all 50 states and DCInputs and calculation scopeSources and tax yearsReport a correction

Updated / verified · Retirement Income Tax Calculator Editorial Team