Is Social Security Taxed in New Mexico in 2026?
Is Social Security taxed in New Mexico in 2026? Yes. Yes, but New Mexico provides one of the nation's most generous exemptions, shielding Social Security completely for single filers with AGI up to $100,000 ($150,000 for joint filers).
Income thresholds shown adjust annually for inflation. Figures reflect the most recently available data — always confirm the current-year threshold with your state's Department of Revenue before filing.
How New Mexico's Social Security Tax Rule Works
Fully exempt if AGI is at or below the threshold — the most generous flat cutoff of the eight states, so most retirees pay nothing.
New Mexico High-Cap Exemption
Calculate Your Federal Taxable Benefits
State taxes on Social Security start with your federally taxable benefits. Use our free interactive tool to compute your Combined Income threshold.
Compare With Other Social Security Taxing States
Only 8 states in the US tax Social Security in 2026. Explore how other taxing states structure their exemptions:
Frequently Asked Questions (New Mexico)
Is Social Security taxed in New Mexico?
Yes, New Mexico is one of only 8 states that levy state income tax on Social Security benefits in 2026. However, Yes, but New Mexico provides one of the nation's most generous exemptions, shielding Social Security completely for single filers with AGI up to $100,000 ($150,000 for joint filers).
What is the top state income tax rate in New Mexico?
New Mexico's top marginal income tax rate for 2026 is 5.90%. The actual tax paid on Social Security benefits depends on your taxable threshold and eligible deductions.
How can retirees in New Mexico minimize Social Security tax?
Retirees can minimize state tax on benefits by managing their Modified Adjusted Gross Income (MAGI) through strategic Roth IRA distributions, timing traditional retirement account withdrawals, and maximizing age-specific deductions.