Does New Mexico Tax Social Security?
New Mexico exempts Social Security entirely for AGI at or below $100,000 (single) / $150,000 (married filing jointly) — most residents pay nothing; above the thresholds the federally taxable portion is taxed.
New Mexico is one of only 8 states that tax Social Security benefits in 2026.
State Tax Rate
1.7%–5.9%
Who's Exempt
Exempt below $100K single / $150K joint AGI
Who is exempt from New Mexico's Social Security tax?
Available Exemptions & Deductions
- Full exemption when AGI is $100,000 or less (single) or $150,000 or less (married filing jointly) — thresholds in place since 2022.
- Married filing separately: exempt at $75,000 AGI or less.
Key facts about New Mexico and Social Security
New Mexico’s income tax rates range from 1.7% to 5.9%.
The 2022 exemption removed state Social Security tax for the large majority of New Mexico retirees.
Above the thresholds, the federally taxable portion of benefits (up to 85%) is taxed at ordinary state rates.
Tax-smart strategy for New Mexico residents
With generous thresholds, the planning question in New Mexico is usually whether a one-time income event (home sale, large conversion) breaches the cliff in a single year — spreading it across years can keep benefits fully exempt.
Frequently Asked Questions
About New Mexico Social Security tax
The other states that tax Social Security in 2026
Get Your Personalized New Mexico Analysis
Our engine factors in New Mexico's exemptions and thresholds to show your true after-tax Social Security benefit.