New Mexico does not tax Social Security benefits
New Mexico is one of the states that does not impose income tax on Social Security retirement, survivor, or disability benefits. If Social Security is your only income source, you will not owe state income tax to New Mexico on those payments, regardless of how much you receive.
However, the federal government may still tax your Social Security benefits depending on your total income. New Mexico's exemption applies only to state taxes. You should still file a federal return if your combined income—including wages, pensions, interest, and dividends—exceeds certain thresholds set by the IRS.
Key Takeaways
- New Mexico does not tax Social Security income at the state level, so you owe no state income tax on these benefits.
- The federal government may still tax your Social Security benefits if your total income exceeds IRS thresholds, even though New Mexico does not.
- If you have other income sources like pensions, wages, or investment earnings, you may owe New Mexico state income tax on those, but not on Social Security.
- You should verify your federal tax obligation by checking IRS Publication 915 or consulting a tax professional, since federal rules differ from state rules.
How New Mexico treats Social Security versus other retirement income
New Mexico exempts Social Security from state income tax, but it treats other retirement income differently. If you receive a pension from a government job, a private employer, or an IRA withdrawal, New Mexico taxes that income at the state level unless you may have access to for a specific exemption.
Military pensions and certain government employee pensions have their own exemptions under New Mexico law. If you are unsure whether your particular pension qualifies, the New Mexico Taxation and Revenue Department can tell you which forms and documentation you need to claim the exemption on your state return.
Federal taxation of Social Security: what you need to know
Even though New Mexico does not tax Social Security, the IRS may. The federal government taxes Social Security benefits based on your combined income, which includes wages, self-employment income, interest, dividends, and half of your Social Security benefits.
If your combined income exceeds $25,000 (single filer) or $32,000 (married filing jointly), up to 50 percent of your benefits may be taxable. If your combined income exceeds $34,000 (single) or $44,000 (married filing jointly), up to 85 percent of your benefits may be taxable. These thresholds have not changed since 1984, so they affect more beneficiaries each year as incomes rise.
You can find the exact calculation in IRS Publication 915, which walks through the worksheet line by line. A tax professional or the IRS can also help you determine whether you owe federal tax on your benefits.
When you must file a federal return despite New Mexico's exemption
You may be required to file a federal income tax return even if New Mexico does not tax your Social Security. The IRS has its own income thresholds, which are separate from New Mexico's state thresholds.
For 2024, a single person age 65 or older must file a federal return if their gross income is $15,000 or more. A married couple (both age 65 or older) must file if their combined gross income is $30,000 or more. These amounts include all income sources—Social Security, pensions, wages, and investment earnings—but the IRS worksheet for Social Security taxation uses a different calculation called "combined income."
Even if you do not owe federal tax, filing a return may be worthwhile if you paid estimated taxes or had taxes withheld from other income sources, because you could receive a refund.
Filing your New Mexico state return when you receive Social Security
If Social Security is your only income, you do not need to file a New Mexico state return. New Mexico has no state income tax requirement for people whose only income is Social Security benefits.
If you have other income—such as a pension, wages, or investment earnings—you must file a New Mexico return if that income exceeds the state threshold. For 2024, a single person must file if their income is $12,200 or more. The Social Security portion of your income does not count toward this threshold, but everything else does.
You can file your New Mexico return online through the Taxation and Revenue Department's website, by mail, or through a tax professional. The state does not require you to report your Social Security benefits on the return, but you should keep your Social Security statement for your records.
What to do if you moved to New Mexico from another state
If you moved to New Mexico from a state that does tax Social Security—such as Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, Rhode Island, Utah, or Vermont—you may have already paid state income tax on your benefits in your previous state. You do not get that money back, but you will not owe New Mexico tax on the same benefits going forward.
When you move to New Mexico, update your address with the Social Security Administration so your statements and tax documents go to the correct location. You may also want to notify your previous state's tax authority that you have moved, in case they need to adjust your account.
Frequently Asked Questions
Do I need to report my Social Security income on my New Mexico state tax return?
No. New Mexico does not require you to report Social Security benefits on your state return. If you file a return because you have other income, you can leave the Social Security line blank.
Will I owe federal tax on my Social Security if I live in New Mexico?
Possibly. New Mexico's exemption applies only to state tax. The IRS uses a separate calculation based on your combined income. Check IRS Publication 915 or speak with a tax professional to determine your federal obligation.
What if I have both Social Security and a pension?
You will not owe New Mexico tax on the Social Security portion, but you may owe tax on the pension unless it qualifies for a specific exemption. Military pensions and some government pensions are exempt. Contact the New Mexico Taxation and Revenue Department to confirm whether your pension qualifies.
Can I file my New Mexico return online if I receive Social Security?
Yes. You can file through the New Mexico Taxation and Revenue Department's online system, by mail, or with a tax professional. If Social Security is your only income, you do not need to file a state return at all.
What income thresholds trigger a New Mexico state return requirement?
For 2024, a single person must file if their income (excluding Social Security) is $12,200 or more. A married couple filing jointly must file if their combined income is $24,400 or more. These thresholds change yearly, so check the current year's requirements on the Taxation and Revenue Department website.