NEW MEXICO RETIREMENT INCOME TAX · TAX YEAR 2026
Does New Mexico tax Social Security and retirement income?
New Mexico exempts all taxable benefits when federal AGI is $100,000 or less ($150,000 joint) and taxes all of them above that. New Mexico taxes pensions and 401(k) and IRA withdrawals at its regular rates, but exempts up to $30,000 of military retirement pay per retiree. A single 67-year-old with $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals pays $286 in New Mexico income tax for 2026.
Your estimate
- New Mexico income tax
- $285.70
- Federal income tax
- $1,810.00
- Total income tax
- $2,095.70
Subtracted from New Mexico income
- Social Security
- $11,300.00
Railroad retirement, tribal pensions and the 65+ medical care deduction are not modeled.
New Mexico tax at different retirement incomes
New Mexico income tax for 2026 on a single 67-year-old with $24,000 of Social Security, and on a married couple, both 67, with $20,000 each. Half the pension and IRA income is a private pension and half IRA withdrawals, all received by one spouse in the couple.
| Pension and IRA income | Single | Married |
|---|---|---|
| $20,000 | $0 | $0 |
| $40,000 | $665 | $68 |
| $60,000 | $1,558 | $648 |
| $100,000 | $4,468 | $2,421 |
| $150,000 | $6,918 | $6,466 |
Does New Mexico tax Social Security?
Partly. New Mexico exempts Social Security income included in federal AGI when AGI is $100,000 or less for single filers, $150,000 or less for joint filers, heads of household and surviving spouses, or $75,000 or less for married couples filing separately. Above those limits, it is taxed at the regular rates.
Of the single 67-year-old's $24,000 in benefits, $11,300 is federally taxable and New Mexico taxes none of it. Of the couple's $40,000, $28,100 is federally taxable and New Mexico taxes none of it.
Does New Mexico tax pensions?
Yes. Private and government pensions are taxed at the regular rates, with no pension exclusion. Up to $30,000 of armed forces retirement pay per retiree is exempt, with no income limit, and each spouse on a joint return can claim it. Railroad retirement and pensions earned on tribal land by enrolled tribal members are also exempt; the calculator does not model them.
State tax for a single 67-year-old with $24,000 of Social Security, a $20,000 pension of each type and $10,000 of IRA withdrawals. Excluded is the part of the pension New Mexico exempts.
| Pension | Excluded | State tax |
|---|---|---|
| Private | $0 | $286 |
| New Mexico government | $0 | $286 |
| Federal civil service | $0 | $286 |
| Military | $20,000 | $0 |
Does New Mexico tax IRA and 401(k) withdrawals?
Yes. IRA and 401(k) withdrawals are taxed at the regular rates, with no subtraction. Qualified Roth IRA withdrawals are not taxed.
With $24,000 of Social Security, $20,000 of IRA withdrawals and no other income, a single 67-year-old pays no New Mexico income tax for 2026.
At what age do retirement tax breaks start in New Mexico?
At 65. Each person 65 or older can subtract up to $8,000 from any income when federal AGI is $18,000 or less for single filers, or $30,000 or less for joint filers and heads of household. It drops $1,000 for each $1,500 of AGI above that ($3,000 joint) until it is gone. The Social Security exemption has no age requirement.
What the calculator leaves out
Railroad retirement, tribal pensions and the 65+ medical care deduction are not modeled.
The calculator uses New Mexico rules from the 2025 forms and instructions, the latest published.
Federal tax uses the 2026 brackets, the standard deduction with the extra amount at 65, and the $6,000 senior deduction. Estimates assume no other deductions, credits or local taxes except as noted.