New Mexico · Property tax exemptions · Updated Oct 2026
New Mexico property tax exemptions
Homestead, senior, veteran, disability and surviving-spouse breaks in New Mexico: what each one is worth, who qualifies, how to apply and the deadline, in plain English.
$2,000homestead exemption
Yessenior break
See the rulesdisabled veterans
See belowhomestead deadline
0.70%median tax rate
Exemptions by group
Every break for one group on one page, with step-by-step instructions and the tools set for that group.
Your county assessor grants exemptions and the value freeze; you file proof with the assessor in the county where the home is. Veterans first get a Certificate of Eligibility from the New Mexico Veterans' Services Department. The state Taxation and Revenue Department sets rules and the yearly inflation-adjusted amounts.
$2,000 off your home's taxable value (taxable value is one-third of market value).
Who qualifies
A New Mexico resident who is married, widowed, a head of household supporting a related person by more than half, or single. One per household, on one property in the state.
How to apply
File the Head of Family exemption form with your county assessor.
No later than 30 days after the county assessor mails the notice of value for the tax year (NMSA 7-38-17(C)).
Renewal
One-time; applied automatically after that unless your eligibility or ownership changes. You must tell the assessor of a change by the last day of February of the next year.
Limitation on Increase in Value for Low-Income Owners 65 or Older or Disabled (value freeze)
Freezes the taxable value of your home at its value in the year you qualify and apply, so later reassessments do not raise it (new improvements can still be added).
Who qualifies
Owner-occupants of a single-family home that is your primary residence who are 65 or older during the tax year, or are blind or permanently disabled under Social Security rules or permanently totally disabled under the Workers' Compensation Act.
Income limit
Prior-year modified gross income (all income of you, your spouse and dependents, including Social Security) of $44,200 or less for tax year 2026.
How to apply
File the 2026 Application - Limitation on Increase in Value for Single Family Dwellings Occupied by Low Income Owners 65 or Older or Disabled with your county assessor. Bring photo ID showing date of birth, proof of disability if applicable, and copies of last year's state and federal income tax returns or other proof of income.
No later than 30 days after the county assessor mails the notice of valuation for the tax year (Sandoval County Assessor, 2026 Valuation Freeze flyer). Apply each year until you have been allowed it 3 years in a row.
Renewal
Every year until it has been allowed for three consecutive tax years; after that only if your eligibility changes.
$10,000 off your property's taxable value for tax year 2026. From 2027 the amount is indexed to inflation (rounded down to the nearest $100, never lower than the year before). The 2026 formula divides the 2025 CPI by itself, so 2026 stays at $10,000.
Who qualifies
New Mexico residents honorably discharged (anything but dishonorable or misconduct) after at least 90 days of continuous active duty (less if discharged for a service-connected disability), or the veteran's unmarried surviving spouse. Property in a grantor trust qualifies. No income limit.
How to apply
Get a Veterans' Certificate of Eligibility from the NM Veterans' Services Department (bring your DD-214), then file it with your county assessor. A lost certificate can be replaced ($5) with the DVS 'Affidavit of Loss'.
From tax year 2026, a share of your home's taxable value equal to your VA disability rating is exempt (for example, 70% rating = 70% exempt), figured after the veteran exemption is taken off. A 100% rating means no property tax on the home.
Who qualifies
Honorably discharged veterans (any discharge other than dishonorable or bad conduct) found under federal law to have a permanent service-connected disability (any percentage), on the home they own and occupy continuously as their principal residence, including property owned jointly with a spouse or held in a grantor trust. Before 2026 only 100% disabled veterans qualified. If two or more disabled veterans own the home, the highest rating is used. The surviving spouse also qualifies if married to the veteran at death and still living in the home.
How to apply
File the Disabled Veteran Certification Form (certifying you own and live in the home) with your county assessor, together with your NM Veterans' Services Certificate of Eligibility and VA proof of your disability rating. If your VA claim is filed but the certificate has not arrived within 30 days after the notice of valuation was mailed, file a protest with the assessor and attach the VA notice that your claim was received.
No later than 30 days after the county assessor mails the notice of valuation (NMSA 7-38-17(C), as amended by HB 285, Laws 2026, ch. 9, effective Feb. 25, 2026). A claim still pending after that can be protested.
Renewal
One-time; file the certification form again only when ownership changes. Tell the assessor by the last day of February of the next year if you become ineligible. If you move, you can move the exemption to your new home.
Law
NMSA 1978, 7-37-5.1 and 7-38-17 (amended by HB 47, Laws 2025, and HB 285, Laws 2026, ch. 9); N.M. Const. art. VIII, sec. 15 (Nov. 2024 amendment)
Only for disabled veterans: when a disabled veteran or surviving spouse moves, they can move the disabled veteran exemption to the new principal residence (NMSA 7-37-5.1(D), as amended 2025).
Is there a cap on value increases?
Yes. A residential property's taxable value cannot rise more than 3% over the prior year (or 6.1% over two years). The cap resets after a sale, a change in use or zoning, or new improvements (NMSA 7-36-21.2, enacted 2000).
Good to know in New Mexico
The 3% cap ends when a home is sold, so a new buyer may see a big jump in value the next year.
From 2026, disabled veterans with less than a 100% rating get a partial exemption for the first time, after voters approved a constitutional amendment in November 2024.
If you lose eligibility (for example you sell or a surviving spouse remarries), you must tell the assessor by the end of February of the next year or face a fine of up to $1,000.
Savings estimate for New Mexico
Roughly what an exemption could save you a year: the value it takes off, times your tax rate.
Eligibility finder for New Mexico
Answer a few questions to see which property tax breaks may fit you. Nothing you type here is sent anywhere.
Document checklist for New Mexico
Pick the breaks you plan to apply for. You get a checklist of forms, documents, steps and deadlines to print or keep on your phone.
Questions about property tax exemptions in New Mexico
Is there a homestead exemption in New Mexico?
Yes: the Head of Family Exemption. $2,000 off your home's taxable value (taxable value is one-third of market value). Who qualifies: A New Mexico resident who is married, widowed, a head of household supporting a related person by more than half, or single. One per household, on one property in the state.
When is the deadline to apply for the homestead exemption in New Mexico?
No later than 30 days after the county assessor mails the notice of value for the tax year (NMSA 7-38-17(C)).
Do I have to reapply for the homestead exemption every year in New Mexico?
One-time; applied automatically after that unless your eligibility or ownership changes. You must tell the assessor of a change by the last day of February of the next year.
Are there property tax breaks for seniors in New Mexico?
Limitation on Increase in Value for Low-Income Owners 65 or Older or Disabled (value freeze): Freezes the taxable value of your home at its value in the year you qualify and apply, so later reassessments do not raise it (new improvements can still be added).
Do disabled veterans get a property tax exemption in New Mexico?
Disabled Veteran Exemption: From tax year 2026, a share of your home's taxable value equal to your VA disability rating is exempt (for example, 70% rating = 70% exempt), figured after the veteran exemption is taken off. A 100% rating means no property tax on the home.
Can I move my exemption to a new home in New Mexico?
Only for disabled veterans: when a disabled veteran or surviving spouse moves, they can move the disabled veteran exemption to the new principal residence (NMSA 7-37-5.1(D), as amended 2025).
Is there a limit on how fast my home's taxable value can rise in New Mexico?
Yes. A residential property's taxable value cannot rise more than 3% over the prior year (or 6.1% over two years). The cap resets after a sale, a change in use or zoning, or new improvements (NMSA 7-36-21.2, enacted 2000).
Where do I apply for property tax exemptions in New Mexico?
Your county assessor grants exemptions and the value freeze; you file proof with the assessor in the county where the home is. Veterans first get a Certificate of Eligibility from the New Mexico Veterans' Services Department. The state Taxation and Revenue Department sets rules and the yearly inflation-adjusted amounts.
Think your home’s assessed value is too high? An exemption and an appeal are separate: you can do both.
Median effective tax rate: U.S. Census Bureau, American Community Survey, 2020–2024 5-year estimates, tables B25103 (median real estate taxes paid, owner-occupied homes) and B25077 (median value, owner-occupied homes). The rate is the median tax paid divided by the median home value.