New Mexico changed its veterans’ property tax benefits in a big way. A constitutional amendment and laws signed in 2025 and 2026 raised the standard veteran exemption and opened the disabled veteran exemption to partially disabled veterans1.
Here’s how the two exemptions work, who qualifies and how to claim them.
New Mexico's veterans' property tax exemptions
| Exemption | Who qualifies | What it's worth |
|---|---|---|
| Veteran exemption (Section 7-37-5 NMSA) | Veterans who own property in New Mexico | $10,000 off taxable value, adjusted yearly for inflation |
| Disabled veteran exemption (Section 7-37-5.1 NMSA) | Veterans with a service-connected disability rating, on their principal residence; surviving spouses in some cases | Rating percentage × taxable value left after the veteran exemption; 100% rating = fully exempt |
Source: NM Legislature and Taxation and Revenue Department231
The state calls its approach the nation’s only directly proportional exemption tied to a federal rating between 10% and 100%. From March through June 2026, 7,096 partially disabled veterans received it for the first time1.
The $10,000 veteran exemption
Every veteran who owns property in New Mexico can take the standard veteran exemption, which rose from $4,000 to $10,000 of taxable value and now adjusts each year for inflation. The state estimates the larger exemption saved 65,720 veterans about $19 million in 2025, $11 million more than in 202413. You don’t need a disability rating for it, and it comes off first, before any disabled veteran exemption is calculated2. The same NMDVS certificate process applies1.
How the disabled veteran exemption is figured
The law exempts an amount equal to the veteran’s federal disability percentage multiplied by the property’s taxable value after the $10,000 veteran exemption is taken off. The veteran must occupy the home continuously as their principal residence. Property held jointly with a spouse, or in a qualifying grantor trust, still counts2. If two disabled veterans own the same home, the higher rating is used2.
What it's worth: an example
A Navy veteran in Las Cruces has a 60% rating. Her home’s taxable value is $60,000. First the $10,000 veteran exemption comes off, leaving $50,000. Then 60% of that, $30,000, is exempt as well, so she’s taxed on $20,000 of value21. Her brother in Gallup, rated 100%, pays no property tax on his home at all1.
Exact savings depend on your county’s tax rate, and the $10,000 figure adjusts each year for inflation1.
Surviving spouse rules
A surviving spouse keeps the disabled veteran exemption if they were married to the veteran at the time of death and keep living in the home as their principal residence2. If a disabled veteran or surviving spouse sells or moves, they can either keep the exemption on the old home for the rest of the year or move it to the new principal residence, even outside the usual claim window2.
Who qualifies, including edge cases
- The rating. A service-connected disability rating as determined under federal law; 10% and up now counts21. See P&T and TDIU for property tax.
- Residence. Only the principal place of residence, occupied continuously2.
- Trusts. A home in a qualifying grantor trust can still be exempt2.
- Shared ownership. Joint or community property with a spouse is covered2.
How to apply
- Get your VA letter. A benefit summary letter showing your rating. See the benefit summary letter.
- Request an NMDVS certificate of eligibility. Call 1-866-433-8387 or email vet.benefits@dvs.nm.gov1.
- File with your county assessor. The assessor applies the exemption once you file the certificate1.
- Watch the timing. Exemptions are claimed through the county assessor's process; HB 285 refers to the usual window of 30 days after the assessor mails the notice of valuation, so ask your assessor about deadlines2.
Other New Mexico benefits for disabled veterans
- Free benefits review. NMDVS service officers can review state and federal benefits4.
- State veterans cemeteries. Angel Fire, Fort Stanton, Gallup and Taos4.
See disabled veteran property tax relief by state for how New Mexico compares.
Mistakes to avoid
- Assuming only 100% counts. Since 2026, partial ratings qualify for a prorated exemption1.
- Skipping the certificate. The assessor needs the NMDVS certificate1.
- Forgetting to update after a rating increase. The exemption tracks your percentage, so a new rating changes it2.
- Moving without telling the assessor. You choose whether to keep it on the old home for the year or move it2.