Social Security benefits in New Mexico
Varies
Is Social Security Taxed in New Mexico?
Short answer: Partly. Federally taxable Social Security is exempt if AGI does not exceed $100,000 (single), $150,000 (married filing jointly, head of household, surviving spouse) or $75,000 (married filing separately). Above those limits, the federally taxable portion is taxed. These limits have applied since tax year 2022 and are not indexed. Bills introduced in 2026 to remove or phase out the caps (HB 92, SB 156) were not found to have been enacted. Separately, people 65+ may qualify for an income-based exemption of up to $8,000 each.
Federally, up to 85% of benefits can be taxable depending on your combined income (IRS Pub 915); that part doesn't change by state.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Social Security benefits in New Mexico
Varies
Individuals / Personal Taxes
Partly. Federally taxable Social Security is exempt if AGI does not exceed $100,000 (single), $150,000 (married filing jointly, head of household, surviving spouse) or $75,000 (married filing separately). Above those limits, the federally taxable portion is taxed. These limits have applied since tax year 2022 and are not indexed. Bills introduced in 2026 to remove or phase out the caps (HB 92, SB 156) were not found to have been enacted. Separately, people 65+ may qualify for an income-based exemption of up to $8,000 each.
Business justification
Partly. Federally taxable Social Security is exempt if AGI does not exceed $100,000 (single), $150,000 (married filing jointly, head of household, surviving spouse) or $75,000 (married filing separately). Above those limits, the federally taxable portion is taxed. These limits have applied since tax year 2022 and are not indexed. Bills introduced in 2026 to remove or phase out the caps (HB 92, SB 156) were not found to have been enacted. Separately, people 65+ may qualify for an income-based exemption of up to $8,000 each. Federally, up to 85% of benefits can be taxable depending on your combined income (IRS Pub 915); that part doesn't change by state.
Category
- Personal Tax Deductions