New Mexico Retirement Income Tax 2025
See how New Mexico treats Social Security, private pensions, annuities, and IRA distributions for a full-year resident, then run the official-source estimate with your own income.
Social Security
Social Security is fully exempt below the statutory income thresholds.
Pension and IRA income
Pension and IRA income is generally taxable.
Estimated 2025 state tax
$2,646Resident return; local taxes and unmodeled credits excluded.
Modeled state taxable income
$65,000Retirement-income subtraction
$15,000Social Security is fully exempt below the statutory income thresholds.
Pension and IRA income is generally taxable.
Scope: The separate age 65+ general exemption is not modeled.
New Mexico worked example
For a single filer age 68 with $80,000 of federal AGI, including $15,000 of federally taxable Social Security, $30,000 of pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income:
Retirement subtraction
$15,000
Modeled state taxable income
$65,000
Estimated 2025 state tax
$2,646
This is an illustration, not a tax return. Local taxes, credits, and unmodeled state adjustments are excluded.
What this model does not include
The separate age 65+ general exemption is not modeled. Review the official instructions before filing.
Review the full New Mexico income tax guide →New Mexico retirement income tax FAQs
Does New Mexico tax Social Security benefits in 2025?
Social Security is fully exempt below the statutory income thresholds.
Does New Mexico tax pensions and IRA withdrawals?
Pension and IRA income is generally taxable.
What does the New Mexico retirement tax example include?
The example uses a single filer age 68 with $80,000 of federal AGI, $15,000 of federally taxable Social Security, $30,000 of private pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income.
Is this a complete New Mexico resident return?
No. The estimate focuses on retirement-income treatment and the state rate schedule. It excludes local income tax and does not reproduce every deduction, credit, addition, subtraction, or special pension rule. The separate age 65+ general exemption is not modeled.
Sources
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