New Mexicans voted overwhelmingly to pass two property tax exemptions for Veterans and unremarried surviving spouses, and they go into effect this tax year, 2026. Here is a summary and step-by-step procedures for ensuring your county Tax Assessor has the documentation to adjust (lower) your property taxes appropriately.
- The standard Veteran property tax exemption was increased from $4,000 to $10,000 and the exemption will increase automatically and annually based on the rate of inflation. How does this effect your tax bill? $10,000 will be deducted from the assessed value of your property and you will only be taxed on the lower value. For example: if your home is assessed to be worth $150,000, $10,000 will be deducted and you will pay taxes on $140,000.
- The disabled Veteran property tax exemption allows Veterans with a VA determined level of disability to have their tax lowered proportionately. For example: if you have a 60% disability from the VA, 60% of your property tax is exempt and the Tax Assessor will lower your taxes by that amount meaning you only pay 40% of your property tax. If you have 100% disability you will continue to not pay property taxes in NM.
Documents needed to verify eligibility for these tax exemption benefits:
- Copy of your DD-214. For veterans who were discharged after the 1970s you must bring the member copy 4 that states the nature of your discharge (honorable, general, etc…)
- Proof of NM residency. Driver’s license, voter registration or a past state tax return.
- VA Award letter showing the percentage of your medical disability (only needed for the disabled Veteran tax exemption).*
- A surviving spouse must bring a copy of marriage and death certificates.
To get your VA award letter on line:
- Sign in to your account on VAgov.
- lick on “VA Benefits and Health Care” at the top left of the web page.
- Select “Disability” from the dropdown menu.
- Choose “Check your claim, decision review, or appeal status”.
- Find the relevant claim and click on it (it will say “Claim status: Closed on …date”).
- Click on “Get your claim letters”.
- Your decision letter(s) will appear as a PDF that you can print or save.
OR
- Contact a VA Regional Office and they can mail you a copy (it takes longer)
- Ask your representative. Either a Veteran Service Officer or attorney can access it through their Veterans Benefits Management System.
- Bring the documents to your nearest NM Department of Veterans Services office where you can complete the NMDVS application for Veteran Tax Exemption and Disabled Veteran Tax Exemption (DVS Form 1, revised March 2025). The NMDVS VSO will verify your information and give you a certificate that you then bring to your county Tax Assessor’s office. These three links help you find your nearest VSO, county Tax Assessor’s office, and the application for tax exemption.
Your VMF Caucus worked hard supporting the legislators that sponsored these two constitutional amendments. We continue to fight for your rights and benefits!
