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
Social Security tax rules in other states, 2026
Beyond state tax: the numbers that move more
The state tax on benefits is usually a few hundred dollars a year. These decide thousands — and three of them are set in Washington, not in the statehouse.
- Optimal Social Security Strategy for Married CouplesCoordinate both records — spousal excess, survivor protection, and the claiming-age combinations that maximize the household's lifetime benefit.
- Social Security & Medicare 2027: Every Number in One PlaceCOLA, Part B, IRMAA brackets, Part D, earnings-test limits — each figure labeled official or projected, updated in place as agencies announce.
- Social Security Claiming Timing and the IRMAA LookbackOne dollar over a threshold applies the surcharge for the whole year — decided by a tax return from two years ago. How claiming feeds in.
- SECURE 2.0's Roth Catch-Up and Your Social Security TaxHow the forced-Roth catch-up rule, effective 2026, quietly changes how high earners' benefits are taxed.