Does New Mexico tax Social Security?
Taxes Social Security for some people
For most people, no. New Mexico exempts Social Security for taxpayers under its income limits. Above them, the benefits are taxed.
What the New Mexico Taxation and Revenue Department says
We do not paraphrase the rule from memory. This is the state's own wording, copied from the page linked below it:
“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.”
Federal tax is a separate question
Whatever New Mexico does, the IRS decides on its own how much of your benefit is taxable on your federal return. Whether it does depends on your other income. Our taxable Social Security calculator follows the IRS worksheet line by line, and this guide explains the rule.
You can ask Social Security to withhold federal tax from each payment. Withholding for New Mexico state tax, if you need it, is arranged with the state, not with Social Security. State rules change with new laws, so check with the New Mexico Taxation and Revenue Department before you file.
Other states where the answer is “taxes Social Security for some people”
Check our work
The answer above comes from this page. Follow the link and compare.
- Social Security Income Tax ExemptionNew Mexico Taxation and Revenue Department. Read on November 12, 2026.