New MexicoBill would exempt federal pay for uniformed service from state income tax
People paid by the United States for listed uniformed service would not pay New Mexico income tax on those salaries under the bill.
What it does
The bill would exempt U.S.-paid salaries for uniformed service from New Mexico income tax. People claiming the exemption would have to report its amount as the tax department requires.
Argument forCovered workers could keep more of their U.S.-paid salary because they would not owe New Mexico income tax on it.
Argument againstExempting these salaries could leave the state with less income tax revenue for other needs.
More detail
The bill would exempt salaries paid by the United States for uniformed service from New Mexico income tax. Covered service includes the Army, Navy, Air Force, Space Force, Marine Corps, Coast Guard, merchant marine, federal public health and oceanic corps, and state National Guard. A taxpayer claiming the exemption would have to report its amount as the tax department requires. The provisions would apply to tax years beginning on or after January 1, 2026.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 24action postponed indefinitelyLatest
- Jan 26germane
- Jan 23Sent to Senate Committees' Committee & Senate Tax, Business and Transportation Committee & Senate Finance CommitteeIntroduced
Taxes & BudgetVeterans