Military Retirement Income Tax Exemption
Military Retirement Income Tax Exemption: Up to $30,000 Deduction
New Mexico allows armed forces retirees to deduct up to $30,000 of military retirement income from their state taxable income for tax years 2024 through 2026.
Details
New Mexico allows armed forces retirees to deduct up to $30,000 of military retirement income from their state taxable income for tax years 2024 through 2026. This is part of a phased exemption enacted in 2022 that started at $10,000 and rose to $30,000.
Restrictions
Five-year exemption: $10,000 (2022), $20,000 (2023), $30,000 (2024-2026). Check NM PIT-ADJ form instructions each filing year for any extension or change.
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