Proportional Disabled Veteran Property Tax Exemption
Property tax reduction proportional to VA disability percentage for all disabled veterans. Effective 2026.
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Apply directly through the official New Mexico agency.
About this benefit
Eligibility
Any VA service-connected disability rating (does not need to be 100%); honorable discharge; NM resident; principal residence.
Covers
Property tax reduction proportional to VA disability percentage. Example: a 70% rating yields a 70% reduction in property taxes. Effective tax year 2026 per Constitutional Amendment 1 (2024) and enabling legislation HB 47 (2025 session).
How to apply
Same NM DVS process. Requires VA award letter, DD-214, proof of residency.
Verified against official source
Last checked 2026-05-05 against ballotpedia.org. Always confirm current rates and rules with the New Mexico state agency before applying.
Other New Mexico Tax Benefits
Veteran Property Tax Exemption
$10,000 reduction from taxable property value for all honorably discharged veterans.
$100-$200/year
Military Retirement Pay Income Tax Exemption
First $30,000 of military retirement pay exempt from NM state income tax.
Approximately $1,500-$1,800/year
Military Disability Retirement Pay Exclusion
Military disability retirement pay is excluded from NM state taxable income.
100% Disabled Veteran Property Tax Exemption
Complete exemption from all property taxes on primary residence for 100% P&T disabled veterans.
$2,000-$4,000+/year on a $250,000 home
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