Active-Duty Military Pay Income Tax Exemption

Active-Duty Military Pay Income Tax Exemption: Full State Tax Exemption

Active-duty members of the U.S.

Active Duty
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Last checked: 2026-05-21

Details

Active-duty members of the U.S. Armed Forces who are New Mexico residents do not pay New Mexico state income tax on their military active-duty pay. The deduction is claimed on the NM Schedule of Additions, Deductions, and Exemptions (Form PIT-ADJ).

Restrictions

Spouses of active-duty members who elect to keep out-of-state residency are also exempt from NM withholding on their income.

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