New Mexico Veteran Benefits 2026: Property Tax Exemptions and Military Retired Pay Tax
The state benefits New Mexico gives veterans and their surviving spouses: property tax exemptions, how the state taxes military retired pay, and other benefits, each with who qualifies, the amount, how to apply and the official source.
New Mexico gives every resident veteran (or un-remarried surviving spouse) a property tax exemption of up to $10,000 of taxable value, and gives service-connected disabled veterans an exemption on their principal residence equal to their VA disability rating, so a 100% rating is a full exemption. Up to $30,000 a year of military retired pay per retiree is exempt from state income tax (tax year 2025). The state also offers free or reduced plates, scholarships, reduced-fee hunting and fishing licenses and a hiring preference for veterans. (sources)
Official sources Checked against official sources on November 4, 2026. This page lists only benefits confirmed on an official state or federal page; counties and cities may offer more.
Property tax exemptions for veterans in New Mexico
| Benefit | Who qualifies | Amount | How to apply | Source |
|---|---|---|---|---|
| Veteran property tax exemption | New Mexico resident veteran with 90+ continuous days of active duty (or less if discharged for a service-connected disability), not dishonorably discharged or discharged for misconduct; also the resident, un-remarried surviving spouse of a qualifying veteran or of a veteran who died in service. No income limit or disability requirement. | Up to $10,000 of the property's taxable value, including community or joint property of husband and wife (amount as published by NMDVS, DVS Form 1 rev. March 2025). | Apply to NMDVS on DVS Form 1 with your DD-214 (or equivalent) and proof of NM residency to get a Certificate of Eligibility, then file the original certificate with your county assessor. Once claimed, the exemption carries forward each year. | New Mexico Department of Veterans' Services |
| Disabled veteran property tax exemption (prorated by VA rating) | Veteran who was honorably discharged (i.e. not dishonorably or bad-conduct discharged) and has been determined by the U.S. Department of Veterans Affairs to have a service-connected disability, and who occupies the property as their principal residence. Joint or community property with a spouse qualifies. No income limit. | Exempts a share of the residence's taxable value equal to the veteran's VA service-connected disability rating (a 100% rating = full exemption). | Apply to NMDVS on DVS Form 1 (Disabled Veteran Tax Exemption) with your DD-214, the VA finding of service-connected disability and proof of NM residency. NMDVS issues a certificate, which you file with your county assessor. | NMDVS DVS Form 1 |
| Surviving spouse continuation of the disabled veteran exemption | Resident, un-remarried surviving spouse of a veteran who qualified for the disabled veteran exemption, even if the veteran never applied for it. A spouse who remarries and later divorces loses eligibility. | Same exemption as the veteran's disabled veteran exemption (share of taxable value equal to the VA rating). | Submit DVS Form 1 to NMDVS with the marriage certificate, the veteran's DD-214, the VA finding of service-connected disability or service-related death, the death certificate and proof of NM residency. File the resulting certificate with the county assessor. | NMDVS DVS Form 1 |
Is military retired pay taxed in New Mexico?
| Treatment | Amount or limit | Source |
|---|---|---|
| Partially exempt. Each armed forces retiree, or surviving spouse of one, can deduct up to $30,000 of armed forces retirement pay on Schedule PIT-ADJ, line 24. On a joint return where both spouses qualify, each can claim $30,000. | $30,000 per qualifying retiree (tax year 2025, per the 2025 PIT-ADJ instructions) | tax.newmexico.gov |
For the dollars this treatment adds to (or saves on) a retiree’s state tax in 2026, see the military retirement tax by state study; for the pension itself, the military retirement pay calculator.
Other New Mexico veteran benefits
Vehicles and license plates
| Benefit | Who qualifies | Amount | Source |
|---|---|---|---|
| Free disabled veteran and other honor license plates | Disabled veterans rated 50% or more; also Purple Heart, Pearl Harbor survivor, ex-POW and Medal of Honor recipients | Free plate | dvs.nm.gov |
| Reduced vehicle registration fees | Veterans entitled to the veteran property tax exemption who don't own enough property to use the full exemption | Registration fees at two-thirds of the normal rate on vehicles the veteran owns | dvs.nm.gov |
| Motor vehicle excise tax exemption | NM resident veterans who lost, or lost the use of, one or both legs at or above the ankle or one or both arms at or above the wrist while serving or from a service-connected cause | Full exemption from the Motor Vehicle Excise Tax | dvs.nm.gov |
Hunting, fishing and other licenses
| Benefit | Who qualifies | Amount | Source |
|---|---|---|---|
| Free lifetime hunting and fishing license (Disabled Veteran Card) | NM resident veterans rated 100% service-connected disabled | Free lifetime small-game hunting and fishing license (Disabled Veteran Card), plus free annual application for the public-land deer draw | dvs.nm.gov |
| Reduced-fee hunting and fishing license | NM service-connected disabled veterans at any rating | $10 small-game and fishing license | dvs.nm.gov |
Education
| Benefit | Who qualifies | Amount | Source |
|---|---|---|---|
| Vietnam Veteran Scholarship | Honorably discharged Vietnam Campaign Medal recipients who were NM residents at entry or have lived in NM 10+ years | Tuition at state-funded post-secondary schools, plus reimbursement for books and fees | dvs.nm.gov |
| Wartime Veteran Scholarship Fund | Honorably discharged veterans who were NM residents at entry or have lived in NM 10+ years and hold a qualifying campaign or service medal for service after August 1, 1990 (e.g., Southwest Asia, GWOT, Iraq or Afghanistan campaign medals) | Tuition and required fees for undergraduate, master's or doctoral study, capped at the highest full-time undergraduate tuition, plus reimbursement for books and supplies | dvs.nm.gov |
| Children of Deceased Veterans Scholarship | Children aged 16–26 of service members who were NM residents at entry and were killed in action or died as a result of service during WWI, WWII or any armed conflict, and of NM National Guard or State Police members killed on active state duty | Admission to state educational institutions free of tuition, plus not more than $300 per child per year in addition to free tuition | dvs.nm.gov |
| Immediate in-state tuition | Veterans, their spouses and children using GI Bill education benefits | Resident tuition rates at state-funded colleges and vocational programs with no residency waiting period | dvs.nm.gov |
Employment
| Benefit | Who qualifies | Amount | Source |
|---|---|---|---|
| State Personnel Office veterans' hiring preference | Honorably discharged veterans and current National Guard members; veterans with a service-connected disability get the larger preference | 5 points added to passing screening-exam scores (10 points for service-connected disabled veterans) | dvs.nm.gov |
| Veteran-owned business procurement preference | Veteran-owned businesses or contractors bidding on state contracts | An extra 5% preference on top of the existing 5% resident (in-state) business preference | dvs.nm.gov |
Other benefits
| Benefit | Who qualifies | Amount | Source |
|---|---|---|---|
| State Park Lifetime Veteran Pass | New Mexico resident veterans | Free unlimited day-use and camping at all NM state parks | dvs.nm.gov |
| Free State Monuments and Museums Pass | NM veterans rated 50% or more service-connected disabled | Free admission to state monuments and museums (personal use) | dvs.nm.gov |
Common questions
Does New Mexico have a property tax exemption for disabled veterans?
New Mexico lists 3 veteran property tax benefits. The main one: Veteran property tax exemption. Who qualifies: New Mexico resident veteran with 90+ continuous days of active duty (or less if discharged for a service-connected disability), not dishonorably discharged or discharged for misconduct; also the resident, un-remarried surviving spouse of a qualifying veteran or of a veteran who died in service. No income limit or disability requirement.. Amount: Up to $10,000 of the property's taxable value, including community or joint property of husband and wife (amount as published by NMDVS, DVS Form 1 rev. March 2025). (New Mexico Department of Veterans' Services – State Benefits (Veteran Property Tax Exemption)).
How do I apply for the New Mexico veteran property tax exemption?
Apply to NMDVS on DVS Form 1 with your DD-214 (or equivalent) and proof of NM residency to get a Certificate of Eligibility, then file the original certificate with your county assessor. Once claimed, the exemption carries forward each year. (New Mexico Department of Veterans' Services – State Benefits (Veteran Property Tax Exemption)).
Does New Mexico tax military retirement pay?
Partially exempt. Each armed forces retiree, or surviving spouse of one, can deduct up to $30,000 of armed forces retirement pay on Schedule PIT-ADJ, line 24. On a joint return where both spouses qualify, each can claim $30,000. Amount or limit: $30,000 per qualifying retiree (tax year 2025, per the 2025 PIT-ADJ instructions) (tax.newmexico.gov).
What other benefits do veterans get in New Mexico?
Free disabled veteran and other honor license plates (dvs.nm.gov); Reduced vehicle registration fees (dvs.nm.gov); Motor vehicle excise tax exemption (dvs.nm.gov); Vietnam Veteran Scholarship (dvs.nm.gov); Wartime Veteran Scholarship Fund (dvs.nm.gov); Children of Deceased Veterans Scholarship (dvs.nm.gov); Immediate in-state tuition (dvs.nm.gov); Free lifetime hunting and fishing license (Disabled Veteran Card) (dvs.nm.gov); Reduced-fee hunting and fishing license (dvs.nm.gov); State Park Lifetime Veteran Pass (dvs.nm.gov); Free State Monuments and Museums Pass (dvs.nm.gov); State Personnel Office veterans' hiring preference (dvs.nm.gov); Veteran-owned business procurement preference (dvs.nm.gov). Who qualifies and the amounts are in the tables above.
Sources
- New Mexico Department of Veterans' Services – State Benefits (Veteran Property Tax Exemption)
- NMDVS DVS Form 1 – Application for Veteran Tax Exemption and Disabled Veteran Tax Exemption (rev. March 2025)
- tax.newmexico.gov
- dvs.nm.gov
Every row above is copied from the official page linked beside it. Benefits change with new laws and local decisions, so confirm the amount and the deadline with the office that runs the program before you apply. QuantCalc is calculation software, not legal, tax or benefits advice. Last updated November 4, 2026.
Related
New Mexico senior property tax relief → New Mexico state income tax for retirees → Veteran benefits in every state → Military retirement tax by state 2026 → Military retirement pay calculator → 2026 VA disability rates → Military retiree and VA COLA 2027 → VA loan limits 2026 →