For tax year 2025, up to $30,000 of military retirement pay or Survivor Benefit Plan (SBP) payments can be excluded from New Mexico state taxable income.
The exemption is specifically for retirees of the U.S. armed forces. The exemption is also available to surviving spouses of qualified U.S. armed forces retirees. Eligibility for the exemption applies to retirees who served in the U.S. Armed Forces and qualified for lifetime benefits, or their surviving spouses. This includes former members who served for a qualifying number of years or were separated from service due to disability.
Program Entry
To apply this exemption to your New Mexico State return:
- State section
- Three dots to edit New Mexico State return
- Deductions from Income
- Enter the amount of your retirement pay included in your net income