Veteran Property Tax Exemption
$10,000 reduction from taxable property value for all honorably discharged veterans.
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Apply directly through the official New Mexico agency.
About this benefit
Eligibility
Honorably discharged veteran; New Mexico resident. No disability rating required. Available to all veterans regardless of wartime service.
Covers
$10,000 reduction from taxable property value annually (effective tax year 2025). Adjusted for inflation each year going forward.
Estimated savings
Typically $100-$200/year depending on county mill rate.
How to apply
Submit application and DD-214 to NM Department of Veterans Services.
Verified against official source
Last checked 2026-05-05 against www.dvs.nm.gov. Always confirm current rates and rules with the New Mexico state agency before applying.
Other New Mexico Tax Benefits
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.
Proportional Disabled Veteran Property Tax Exemption
Property tax reduction proportional to VA disability percentage for all disabled veterans. Effective 2026.
Proportional to disability rating; potentially thousands/year
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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