Military Disability Retirement Pay Exclusion
Military disability retirement pay is excluded from NM state taxable income.
State BenefitNew MexicoTax Benefits
Verified May 12, 2026 against dvs.nm.gov
At a glance
- Benefit type
- Tax Benefits — New Mexico
- Who it's for
- Veterans
- VA rating needed
- No rating requirement
- Where it applies
- New Mexico
- Last verified
- May 12, 2026
What is Military Disability Retirement Pay Exclusion?
Military Disability Retirement Pay Exclusion is a New Mexico tax benefits benefit for veterans. Military disability retirement pay is excluded from NM state taxable income.
Who qualifies
- Veterans
- Available to any veteran
- New Mexico residency
Who is eligible
Eligibility
Veterans receiving military disability retirement pay as a pension, annuity, or similar allowance for personal injury or sickness resulting from active service.
What Military Disability Retirement Pay Exclusion covers
Covers
Disability retirement pay is not included in taxable income for NM state tax purposes. Value varies by amount of disability pay received.
How to apply for Military Disability Retirement Pay Exclusion
How to claim
Excluded when filing NM state income tax return.
Verified information & sources
- Last verified
- May 12, 2026
- Official source
- dvs.nm.gov
Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.
How VetUnlock verifies benefitsFrequently asked questions about Military Disability Retirement Pay Exclusion
Who qualifies for Military Disability Retirement Pay Exclusion?
Military Disability Retirement Pay Exclusion is for Veterans; available to any veteran; new mexico residency. See the eligibility details on this page and confirm with the official source before applying.
How do I apply for Military Disability Retirement Pay Exclusion?
Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.
Where can I verify Military Disability Retirement Pay Exclusion?
Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.
Other New Mexico Tax Benefits
- Veteran Property Tax Exemption$100-$200/year$10,000 reduction from taxable property value for all honorably discharged veterans.
- Military Retirement Pay Income Tax ExemptionApproximately $1,500-$1,800/yearFirst $30,000 of military retirement pay exempt from NM state income tax.
- Proportional Disabled Veteran Property Tax ExemptionProportional to disability rating; potentially thousands/yearProperty tax reduction proportional to VA disability percentage for all disabled veterans. Effective 2026.
- 100% Disabled Veteran Property Tax Exemption$2,000-$4,000+/year on a $250,000 homeComplete exemption from all property taxes on primary residence for 100% service-connected disabled veterans.