KEY TAKEAWAYS
- Since the 2026 tax year, every New Mexico veteran with a service-connected rating gets a property tax exemption equal to their rating on their home: 50% off at a 50% rating, 70% off at 70%, and all of it at 100%.
- All honorably discharged veterans who own property get a $10,000 reduction in taxable value, adjusted each year for inflation. It was $4,000 until 2025.
- New Mexico exempts up to $30,000 a year of military retired pay and SBP annuities from income tax, and active-duty pay for residents is fully exempt.
- Resident veterans with an honorable discharge get a free lifetime state parks pass for day use and camping.
- Veterans rated 100% get a free lifetime hunting and fishing card; veterans rated below 100% pay $10 for a combination license.
- New Mexico Veteran Benefits by Disability Rating
- New Mexico Income Tax Benefits
- New Mexico Property Tax Exemptions for Veterans
- Education Benefits
- Employment and Business Benefits
- Licenses, Plates and Vehicles
- State Parks, Hunting and Fishing
- New Mexico State Veterans Home
- State and National Veterans Cemeteries
- Surviving Spouse Benefits
- How to Claim New Mexico Veteran Benefits, Step by Step
- Frequently Asked Questions
New Mexico rewrote its veterans’ property tax rules in the last two years, and the changes are big. Voters approved a constitutional amendment, the legislature followed with laws in 2025 and 2026, and 2026 is the first year every disabled veteran gets a property tax exemption in proportion to their VA rating. The standard veterans’ exemption also jumped from $4,000 to $10,000. Much of what’s published online still describes the old rules. This guide covers what applies now, along with the state’s income tax, education, hunting, parks and burial benefits and how to claim each one.
New Mexico Veteran Benefits by Disability Rating
Several New Mexico benefits scale with your rating. Here’s what each level gets you, using the rules covered below:
| Your status | What you get in New Mexico |
|---|---|
| Any honorably discharged resident veteran | $10,000 property tax exemption (inflation-adjusted), free lifetime state parks pass, 50% off hunting and fishing licenses, state hiring preference, $30,000 retired pay exemption if retired |
| Any service-connected rating (10% to 99%) | Property tax exemption equal to your rating percentage on your home, plus a $10 combination hunting and fishing license |
| 50% or higher | Free Disabled Veteran license plates for up to two vehicles; eligible for the disabled veteran oryx draw on White Sands Missile Range |
| 100% | Full property tax exemption on your home, free lifetime hunting and fishing card |
| 100% permanent and total | Also exempt from special benefit assessments on the home |
Because the property tax exemption now moves with your rating, an increase from 60% to 80% cuts your home’s tax by another fifth. If your conditions have worsened, our guide to a VA disability rating increase explains how to ask for one.
New Mexico Income Tax Benefits
Military Retired Pay: Up to $30,000 Exempt
New Mexico exempts up to $30,000 a year of military retired pay from state income tax. The same $30,000 exemption applies to military survivor annuities, including the Survivor Benefit Plan, Reserve Component SBP and RSFPP. Retired pay above $30,000 is taxed at New Mexico’s regular rates. Our military pension calculator shows how much of your retired pay would fall above the cap.
Full exemption has been proposed several times. Bills to remove the cap were introduced in 2025 and 2026, and a legislative interim committee has endorsed the idea again for the 2027 session. Until a bill becomes law, the cap is $30,000.
Active-Duty Pay
Military pay that a New Mexico resident earns on active duty is exempt from New Mexico income tax. Nonresident military spouses don’t pay New Mexico tax on wages earned in the state when both spouses are residents of another state and the service member is stationed in New Mexico on orders.
VA Disability, Disability Retirement and DIC
VA disability compensation, military disability retirement paid for an injury or illness from service, Dependency and Indemnity Compensation and VA grants for adapted homes and vehicles aren’t taxable income, so New Mexico doesn’t tax them.
New Mexico Property Tax Exemptions for Veterans
Veterans Exemption: $10,000, Adjusted for Inflation
Any New Mexico resident veteran with an honorable discharge after at least 90 days of continuous active duty (other than training), or who was discharged earlier because of a service-connected disability, can take $10,000 off the taxable value of their property. The amount used to be $4,000; a constitutional amendment raised it to $10,000 and ties it to inflation each year. The Taxation and Revenue Department says the higher exemption saved 65,720 veterans an estimated $19 million in 2025. An unremarried surviving spouse of an eligible veteran can claim it too.
If you don’t own enough property to use the exemption, you may be able to pay vehicle registration fees at two-thirds of the regular rate on vehicles you own instead.
Disabled Veteran Exemption: Equal to Your Rating
Before 2026, only veterans rated 100% got a property tax exemption on their home. Now the exemption covers every service-connected rating from 10% to 100%, and it equals your rating applied to the taxable value of your primary residence. A veteran rated 70% has 70% of the home’s taxable value exempt; a veteran rated 100% pays no property tax on the home.
- You must be a resident, honorably discharged, with a service-connected rating from VA, and live in the home as your principal residence.
- If two or more disabled veterans own the home, the exemption uses the highest rating among them.
- Veterans rated 100% permanent and total are also exempt from special benefit assessments on the home.
- The exemption passes to an unremarried surviving spouse of an eligible veteran.
The change came from a constitutional amendment followed by House Bill 47 in 2025 and House Bill 285 in 2026. In the first months it was available, March through June 2026, 7,096 partially disabled veterans received the exemption, according to the New Mexico Department of Veterans’ Services. If your VA claim is still pending when the assessor’s notices go out, the 2026 law lets you protest so the exemption isn’t lost while you wait.
How to Claim the Property Tax Exemptions
- Get a certificate of eligibility from the New Mexico Department of Veterans’ Services. Send the application with your DD-214 and, for the disabled veteran exemption, your VA rating letter to vet.benefits@dvs.nm.gov, or mail or bring it to 407 Galisteo Street, Room 134, Santa Fe, NM 87501. Call 866-433-8387 with questions.
- File the certificate with your county assessor, who applies the exemption to your property. Assessors work on an annual valuation cycle, so ask your county for its deadline and file early in the year.
- Recertify after a rating change. A higher rating means a larger exemption, but only once the assessor has the new certificate.
Lower property taxes also make buying in New Mexico cheaper month to month. A VA loan lets you buy with no down payment, and a surviving spouse who qualifies for DIC can often use one too.
Education Benefits
Vietnam Veterans and Wartime Veterans Scholarships
Two scholarships pay tuition, fees and books at New Mexico’s state-funded colleges and universities, for undergraduate, master’s and doctoral programs. Each award covers one academic year and renews as long as you make satisfactory progress.
- Vietnam Veterans Scholarship: for veterans awarded the Vietnam Campaign Medal or Vietnam Service Medal for service between August 5, 1964, and the end of the conflict.
- Wartime Veterans Scholarship: for veterans awarded the Southwest Asia Service Medal, Global War on Terrorism Service Medal, Iraq or Afghanistan Campaign Medal, or another campaign medal.
For both, you need an honorable discharge and must have been a New Mexico resident when you entered service or have lived in New Mexico for at least 10 years. Apply through the Department of Veterans’ Services with proof of residency and a certified copy of your DD-214.
Scholarship for Children of Deceased Veterans
Children aged 16 to 26 of service members who entered service as New Mexico residents and were killed in action, or died as a result of action, during a period of armed conflict can get a scholarship at a state-funded school covering fees, room and board, and books and supplies, plus a $300 stipend each year. Children of New Mexico National Guard members killed on state active duty also qualify. Apply through the Department of Veterans’ Services with the service member’s discharge papers and death certificate.
In-State Tuition and the Lottery Scholarship
- Veterans, spouses and children using VA education benefits pay in-state tuition at any state-funded college, university or vocational program.
- Active-duty members stationed in New Mexico and their dependents pay in-state rates, and dependents keep them after a reassignment as long as they stay enrolled.
- National Guard members, spouses and children pay in-state tuition.
- New Mexico high school graduates who went straight into the military can still qualify for the Legislative Lottery Scholarship if they enroll in a bachelor’s program the first regular semester after discharge.
Veterans who left a New Mexico high school to serve in World War II, Korea or Vietnam can receive their diploma. State benefits usually work best on top of federal ones; see our Post-9/11 GI Bill guide.
Employment and Business Benefits
- Hiring preference: honorably discharged veterans and current National Guard members get 5 points added to passing scores on public employment exams; veterans with a service-connected disability get 10.
- Military leave: state, county, city and school district employees in the Guard or Reserve get 15 days of paid military leave each federal fiscal year for training, in addition to vacation.
- Veteran business preference: veteran-owned businesses certified by the Taxation and Revenue Department get a preference worth 10% in state and local bids and proposals. Certification costs $35 and lasts three years.
- Hiring tax credit: New Mexico businesses can get up to a $1,000 tax credit for each recently returned veteran they hire.
- Job help: Workforce Solutions gives veterans priority service, with veteran employment representatives at America’s Job Center offices. The state forestry division’s Returning Heroes program hires veterans for wildland firefighting crews.
Licenses, Plates and Vehicles
- Veteran designation: add “Veteran” to your driver’s license or ID free on a first request or at renewal; bring your DD-214 to MVD.
- Disabled Veteran plates: free for veterans rated 50% or higher, for up to two vehicles, including motorcycles.
- Purple Heart and Medal of Honor plates: free for up to two vehicles.
- Gold Star Family plate: first set free for a surviving spouse or parent of a service member killed in armed conflict.
- Limb loss: veterans who lost, or lost the use of, an arm or a leg from a service-connected cause pay no registration fees or excise tax on one vehicle.
- CDL waivers: through Heroes to Highways, qualifying military drivers can skip CDL testing, and some MOSs skip the knowledge test too.
State Parks, Hunting and Fishing
Free Lifetime State Parks Pass
New Mexico resident veterans with an honorable discharge can get a free lifetime pass for unlimited day use and camping at every New Mexico state park. Reserve component members qualify after six continuous years of service. The pass is a hang-tag good for one vehicle at a time, and the veteran must be present. Apply through the Department of Veterans’ Services with your DD-214 and proof of residency. Every Veterans Day, resident veterans, service members and their families also get free state park entry and camping and free admission to the New Mexico History Museum, Museum of Natural History and Science, and Museum of Space History.
Hunting and Fishing Licenses
- 100% disabled: resident veterans rated 100% get a free lifetime card covering fishing, small game and deer hunting. You still have to apply each year for deer, either by winning the draw or with written landowner permission for a private-land hunt.
- Rated below 100%: resident disabled veterans pay $10 for a combination game hunting and fishing license.
- All resident veterans and service members: 50% off licenses, permits and stamps (not application or vendor fees). Veterans need at least 90 days of active duty or six years in a reserve component and an honorable discharge.
- Special hunts: resident veterans can apply for a once-in-a-lifetime oryx hunt on White Sands Missile Range, veterans rated 50% or higher have their own oryx draw, and active-duty members have draws on Fort Bliss and Melrose Air Force Range.
New Mexico State Veterans Home
The New Mexico State Veterans Home in Truth or Consequences provides nursing care for veterans who served at least 90 days with an honorable discharge, their spouses, and Gold Star parents. You don’t have to be a New Mexico resident, but residents get priority when there’s a waiting list.
- Address: 992 South Broadway, Truth or Consequences, NM 87901
- Phone: 575-894-4200
State and National Veterans Cemeteries
The Department of Veterans’ Services runs three state veterans cemeteries. Eligibility follows VA national cemetery rules, so spouses and eligible dependent children can be buried there too, and you can apply for a pre-need eligibility decision in advance.
| Cemetery | Address | Phone |
|---|---|---|
| Angel Fire State Veterans Cemetery | 31 Onate Road, Angel Fire | 505-225-4341 |
| Fort Stanton State Veterans Cemetery | 1398 State Highway 220, Fort Stanton | 505-205-6707 |
| Gallup State Veterans Cemetery | 333 National Cemetery Drive, Gallup | 575-921-3494 |
VA also runs two national cemeteries in New Mexico, Santa Fe National Cemetery and Fort Bayard National Cemetery. The department coordinates a free honor guard and bugler for veterans’ funerals; call 866-433-8387.
Surviving Spouse Benefits
An unremarried surviving spouse keeps the veteran’s $10,000 property tax exemption and the disabled veteran exemption on the home, and SBP annuities qualify for the same $30,000 income tax exemption as retired pay. DIC is never taxed. Children of service members killed in action may qualify for the deceased veterans scholarship above. For federal benefits, see our guide to VA benefits for surviving spouses.
How to Claim New Mexico Veteran Benefits, Step by Step
- Gather your documents: your DD-214 and, for rating-based benefits, a current VA rating letter. Discharge papers filed with a New Mexico county clerk aren’t public records, so recording yours is a safe way to keep a copy.
- Contact a veterans service officer: the Department of Veterans’ Services Field Services Division helps with state and federal claims for free.
- Get your certificate of eligibility for the property tax exemptions and take it to your county assessor.
- Apply to each agency: the Department of Veterans’ Services for the parks pass, scholarships and the 100% hunting card; MVD for plates; Game and Fish for discounted licenses.
- Enroll in VA health care if you haven’t: the Raymond G. Murphy VA Medical Center in Albuquerque anchors care statewide. You can apply online.
RELATED READING
Arizona Veteran Benefits: Complete State Guide →
New Mexico’s neighbor fully exempts military retired pay and has its own disabled veteran property tax exemption.
How to Get a VA Disability Rating Increase →
In New Mexico, every point of rating now cuts your property tax too.
Compare New Mexico with every other state’s taxes, tuition and property tax benefits.
Frequently Asked Questions
No, not on their home. New Mexico exempts the full taxable value of the primary residence of a resident veteran rated 100% service-connected, with no income limit. Veterans rated 100% permanent and total are also exempt from special benefit assessments. Get a certificate of eligibility from the Department of Veterans’ Services and file it with your county assessor.
Since the 2026 tax year, the exemption equals your VA rating applied to your home’s taxable value. A veteran rated 50% has half the taxable value exempt, and a veteran rated 70% has 70% exempt. It applies to your primary residence and passes to an unremarried surviving spouse.
It is $10,000 off the taxable value of your property, adjusted each year for inflation. It was $4,000 until a constitutional amendment raised it. Any resident veteran with an honorable discharge after 90 days of active duty, or discharged earlier for a service-connected disability, qualifies, and so does an unremarried surviving spouse.
Partly. New Mexico exempts up to $30,000 a year of military retired pay and military survivor annuities from state income tax; amounts above that are taxed at regular rates. Active-duty pay for residents is fully exempt, and VA disability compensation is never taxed.
Yes. Resident veterans with an honorable discharge can get a free lifetime pass for unlimited day use and camping at all New Mexico state parks. Reserve component members qualify after six continuous years. Apply through the Department of Veterans’ Services with your DD-214 and proof of residency.
Resident veterans rated 100% get a free lifetime card for fishing, small game and deer hunting. Resident veterans rated below 100% pay $10 for a combination hunting and fishing license, and all honorably discharged resident veterans get 50% off licenses, permits and stamps.
In Truth or Consequences, at 992 South Broadway. It provides nursing care for veterans with at least 90 days of service and an honorable discharge, their spouses and Gold Star parents. New Mexico residency is not required, but residents get priority. Call 575-894-4200.
This article is provided by USMilitary.org, an independent educational resource. We are not affiliated with the State of New Mexico, the New Mexico Department of Veterans’ Services, VA or any government agency. Benefits and eligibility rules change; confirm current details with the New Mexico Department of Veterans’ Services, your county assessor or the official New Mexico state benefits summary before you apply.