New Mexico Retirement Income Tax Guide for Seniors
Yes. New Mexico is one of only eight states that still taxes Social Security benefits at the state level, though most of these states provide income-based exemptions or credits that reduce or eliminate the tax for many retirees.
Yes. New Mexico is one of only eight states that still taxes Social Security benefits at the state level, though most of these states provide income-based exemptions or credits that reduce or eliminate the tax for many retirees.
Does New Mexico Tax Social Security?
Yes. New Mexico is one of eight states (alongside Colorado, Connecticut, Minnesota, Montana, Rhode Island, Utah, and Vermont) that still taxes Social Security benefits at the state level. Most of these states provide income-based exemptions, deductions, or credits that reduce or eliminate the tax for many retirees, but the exact thresholds vary by state and change over time — check with New Mexico's Department of Revenue for current figures before assuming your benefits are taxed.
Does New Mexico Tax Pensions and 401(k)/IRA Withdrawals?
Pension and 401(k)/IRA tax treatment in New Mexico is being independently verified for this site — check with New Mexico's Department of Revenue for exact current rules. A state taxing Social Security does not automatically mean it taxes pensions and retirement accounts the same way, or vice versa.
Check Your Exact Numbers
This page covers New Mexico's state-level tax treatment only. Social Security benefits can also be taxed at the federal level depending on your total income, regardless of which state you live in — use the Is Social Security Taxable? Calculator to check that separately. For the full 50-state comparison, see the State Retirement Income Tax Exemption Finder.
Frequently Asked Questions
Is Social Security taxed in New Mexico?
Yes, New Mexico is one of eight states that taxes Social Security benefits at the state level, though income-based exemptions often reduce or eliminate the tax for many retirees.
Does New Mexico tax pensions?
Pension and retirement account tax treatment in New Mexico is still being verified on this site. Check with New Mexico's Department of Revenue for current rules.
This page is for general educational purposes and is not affiliated with the New Mexico Department of Revenue or the IRS. State tax rules change; verify current details with New Mexico's Department of Revenue. See our Data Sources page for how we source figures.