New Mexico Disabled Veteran Property Tax Exemption: Who Qualifies

New Mexico's disabled veteran property tax exemption is proportional: it equals the disability percentage the VA has determined, multiplied by your home's taxable value.1 That is what the operative statute says, and it names no minimum rating, so a partial rating brings a partial reduction while a 100-percent rating can wipe out most or all of the property tax on your home. The Legislative Finance Committee, relaying New Mexico Counties, describes the 2024 constitutional amendment as extending the exemption to veterans rated between 10 and 100 percent, with implementation beginning in FY27.1

In This Guide

• Key Takeaways
• What the Exemption Is
• Do You Qualify for the New Mexico Disabled Veteran Property Tax Exemption?
• How Much Is the New Mexico Disabled Veteran Property Tax Exemption?
• What About a Surviving Spouse?
• How to Claim It
• How It Works With Your VA Benefits
• Frequently Asked Questions
• Learn More

What the Exemption Is

New Mexico is home to about 150,937 veterans, and as of September 30, 2019 they made up 8.4 percent of the state's adult population against 6.8 percent nationally, so this is a benefit a lot of families here can use.3 The disabled veteran property tax exemption is a state benefit created under New Mexico's Property Tax Code (Section 7-37-5.1 NMSA 1978) and claimed on the veteran's homestead through the county assessor. It is a separate program from the federal VA's disability compensation and pension benefits.1

Two things are worth getting straight up front, because they trip families up.

First, this is not the same as New Mexico's age- and income-based property tax relief for seniors. That is a separate program keyed to age and income rather than to a service-connected disability. If you're a senior looking for relief that isn't tied to military service, see our guide to New Mexico senior property tax relief instead.

Second, it's separate from the standard veteran exemption. New Mexico gives any qualifying resident veteran (or an unmarried surviving spouse) an exemption of up to $10,000 of taxable value on their property.1 The disabled veteran exemption layers on top of that standard exemption, and for a service-connected veteran the two together can remove most or all of the home's taxable value.

Do You Qualify for the New Mexico Disabled Veteran Property Tax Exemption?

To claim this exemption, you need to be a disabled veteran as New Mexico defines the term: a person honorably discharged from the armed forces who has been determined under federal law to have a permanent service-connected disability.1 The disability rating comes from the VA, and it's the same rating that drives your federal benefits.

For years, only veterans rated 100 percent service-connected got a property tax exemption in New Mexico. That changed after voters approved a constitutional amendment in 2024, which broadened eligibility beyond 100-percent-disabled veterans to include veterans with partial service-connected disabilities, scaled to the percentage of disability.1

Be careful about where the "10 percent" figure comes from, because it matters if an assessor pushes back. The Legislative Finance Committee's fiscal impact report, relaying New Mexico Counties, says the amendment expanded the exemption to all veterans with service-connected disabilities between 10 percent and 100 percent, that House Bill 47 of 2025 was the enabling legislation, and that implementation begins in FY27.1 The operative statute itself states only the federally determined percentage multiplied by taxable value, and names no floor.1 So the 10-percent line is what the state's own analysts describe, not a number written into the formula.

You also have to actually live in the home. The exemption applies only while the disabled veteran occupies the property continuously as a principal place of residence.1 A second home or a rental doesn't qualify.

How Much Is the New Mexico Disabled Veteran Property Tax Exemption?

Here's how the math works, because the exemption isn't a flat dollar amount. It's a percentage of your home's taxable value, and it's tied directly to your disability rating.

The exemption equals the percentage of your disability, as determined under federal law, multiplied by the taxable value of your property, after the standard veteran exemption (up to $10,000 of taxable value) is first deducted.1 So a veteran rated 100 percent has effectively the entire remaining taxable value exempted, while a veteran rated 40 percent has 40 percent of the remaining taxable value exempted.

The table below lines up the two veteran property tax breaks against the separate age- and income-based relief, so you can see which one fits your situation.

Both veteran figures above come from New Mexico's Property Tax Code.1 The senior relief in the third row is a different program in a different part of state law; see the senior property tax relief guide for its own rules.

What About a Surviving Spouse?

If a disabled veteran dies, the exemption doesn't automatically disappear from the household. A surviving spouse keeps the disabled veteran exemption as long as two conditions hold: the spouse and the veteran were married at the time of the veteran's death, and the surviving spouse continues to occupy the property continuously after the veteran's death as a principal place of residence.1

Separately, the standard veteran exemption (up to $10,000 of taxable value) also extends to an unmarried surviving spouse who is a New Mexico resident.1 If you've recently lost a veteran spouse, it's worth confirming both exemptions with your county assessor rather than assuming the benefit ended with the veteran.

How to Claim It

The exemption isn't automatic. You have to claim it, and you claim it locally.

Claiming it takes two documents, not one. Section 7-38-17(E) NMSA 1978 requires the department's regulations to provide for the veterans' services department to issue certificates of eligibility for veteran exemptions, so the certificate is the piece to request first.1 House Bill 285 of 2026, which the Legislative Finance Committee describes as clarifying and modifying how the exemption is administered rather than expanding it, would set the rest of the procedure out expressly: you present the county assessor a form prescribed by the department certifying that you own the property and occupy it continuously as your principal place of residence, accompanied by your certificate of eligibility, both at the time you first claim the exemption and on any change in ownership.1 That bill was still a bill when we read these sources, so ask your assessor which procedure that office is running today.

The deadline is thirty days, and it is easy to miss. An exemption that has to be claimed must be applied for no later than thirty days after the county assessor mails its notices of valuation, or it is not allowed for that tax year.1 A denial can be protested. House Bill 285 would add two more routes for a veteran caught by that clock: a claim still pending thirty days after the notices went out may be protested, and a veteran who has filed a disability claim with the VA whose certificate of eligibility has not issued within the thirty days may file a protest and attach the notice of receipt of the claim.1

The good news on the other side: once the exemption is claimed and allowed for a tax year, you do not have to claim it again in later years as long as nothing changes about your eligibility or the ownership of the property.1

There is a duty running the other way, and it carries a criminal penalty, so it belongs on your calendar too. If you have had the exemption applied and then become ineligible, because your status changed or the property changed hands, you must notify the county assessor of the loss of eligibility by the last day of February of the tax year immediately following the year the loss occurred.1 A person who fails to do that, or who intentionally claims and receives an exemption they are not entitled to, is guilty of a misdemeanor and can be fined up to $1,000.1

You don't have to sort out the paperwork alone. The New Mexico Department of Veterans Services, through its Field Services Division, helps veterans and their eligible dependents obtain state and federal benefits, and its field offices across the state offer information and assistance on state benefits, local veterans' programs, and referrals.2 You can reach the Field Services main office at (505) 383-2400 or the department's main line at 1-866-433-8387.2 Because the exemption tracks your VA disability rating, having your VA rating decision and proof of residence in hand makes the process faster.

How It Works With Your VA Benefits

The property tax exemption is a state benefit, so it sits alongside your federal VA benefits rather than trading off against them. It is a separate program from the federal VA's disability compensation and pension, and it lowers a property tax bill rather than paying you. If you receive, or are applying for, a needs-based VA Pension or Aid and Attendance, which the VA assesses on income and net worth, confirm your own situation with an accredited representative.1

It helps to see how the property tax exemption differs from Aid and Attendance, the federal benefit families most often ask about in the same breath. Aid and Attendance is a needs-based VA pension for wartime veterans who need help with daily activities, and it does not require a service-connected disability at all.4 It runs on wartime service, no dishonorable discharge, a need for regular aid, and a net worth under $163,699 for 2026.4 That net worth figure counts your assets and your income for VA purposes together, but VA's assets do not include your primary residence, your car, or basic home items like appliances you wouldn't take with you if you moved, so the home you live in doesn't push you over the limit.4 What counts is the fair market value of your other property, minus any mortgage, and the calculation includes your spouse's net worth; VA may subtract unreimbursed medical and educational expenses from the income side.4 On the age and disability side, meeting any one of four conditions is enough: being at least 65 years old, having a permanent and total disability, being a patient in a nursing home for long-term care because of a disability, or getting Social Security Disability Insurance or Supplemental Security Income.4

That's a different test from the property tax exemption, which keys off your service-connected disability percentage. A veteran can qualify for one and not the other. When Aid and Attendance does apply, the VA sets the 2026 maximum at $29,093 a year for a veteran with no dependents, about $2,424 a month, and at $34,488 a year for a veteran with one dependent, or $2,874 a month.5 That maximum is a ceiling rather than a payment, because the VA pays the difference between your income for VA purposes and the limit.5 VA publishes these rates as annual maximums, so a monthly amount is the yearly award divided by 12.5 For the New Mexico specifics on that benefit, see our New Mexico Aid and Attendance guide, and for how the pension net worth limit and look-back work, our guide to VA net worth and the look-back.

Learn More

Find personalized help claiming New Mexico's disabled veteran property tax exemption at brevy.com.

The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.