In New Mexico, beginning in 2022, up to $10,000 of military retirement pay is not taxed by the state. That amount increases to $20,000 in 2023, and to $30,000 until at least 2026 when the law sunsets and is no longer in effect.
This year the legislature has an opportunity to lift the sunset and make permanent the military retirement pay tax exemption. This will make New Mexico an even more desirable place for military retirees who bring an unparalleled level of work ethic and specialized training and experience in a variety of career fields.
Most of these retirees are in their 40’s and start second careers or open new businesses that contribute to the tax revenues of the state. Along with their spouses who are also often licensed experienced professionals in their careers, military retirees contribute to the economy, the workforce, and the social diversity of our state.
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