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Gov. Michelle Lujan Grisham eliminates
tax on Social Security
Exemption will save senior taxpayers an average of $630
“For years, New Mexico was one of just a few states that still taxed Social Security benefits. New Mexico seniors deserve to hold onto their hard-earned benefits – and now, they will.” — Gov. Michelle Lujan Grisham
Beginning with tax year 2022, most seniors will be exempt from paying taxes on their Social Security benefits when they file their New Mexico Personal Income Tax returns. Tax relief from the new Social Security exemption is expected to total $84.1 million in the first year. The exemption is available to single taxpayers with less than $100,000 in income, to married couples filing jointly, surviving spouses and heads of household with under $150,000 in income, and to married couples filing separately with under $75,000 in income.
Instructions on how to claim the exemption will be available beginning with the 2022 Tax Year Personal Income Tax instructions.
Do you know someone who could benefit? Please share this page. Are you considering retiring in New Mexico? Retire New Mexico can help. Learn more here: https://www.retirenewmexico.org/