New Mexico disabled Veteran property tax exemption
If you are a New Mexico Veteran with a VA disability rating, you may qualify for a property tax exemption that scales with your rating. This page explains the 2026 proportional exemption, who qualifies, and how to apply.
How New Mexico's disabled-Veteran exemption works
New Mexico voters approved Constitutional Amendment 1 in November 2024, and effective the 2026 tax year the disabled-Veteran property tax exemption is proportional to the VA disability rating. The exemption equals your service-connected rating applied to the taxable value of your primary residence.
Proportional by rating
- A 50% rating reduces your taxable value by 50%.
- A 70% rating reduces it by 70%.
- A 100% rating is a full exemption on the primary residence.
A temporary 100% rating qualifies for the full exemption — you do not need a permanent-and-total (P&T) designation.
General Veteran exemption ($10,000)
Separately, every honorably discharged Veteran (regardless of disability rating) may claim a $10,000 exemption from the assessed value of property. It is modest but available without a disability rating.
Surviving spouse
An unremarried surviving spouse of an eligible Veteran continues the exemption. Surviving spouses of service members killed in action also qualify.
How to apply
Apply through your county assessor with your VA disability documentation. Approval typically takes 30–60 days and applies to the next tax cycle.
How this fits with your VA loan
When you buy a home in New Mexico with a VA loan, your lender estimates property tax as part of your monthly payment (the T in PITI). If you qualify for the disabled-Veteran exemption, that tax escrow drops in proportion to your rating (and zeroes out at 100%), which lowers your monthly payment and improves your debt-to-income ratio. We structure your pre-approval so the exemption is reflected accurately and you do not lose buying power.
Common questions
Do I need to be 100% disabled to qualify?
No. As of the 2026 tax year, New Mexico's exemption is proportional to your rating, so any service-connected rating earns a reduction. A 100% rating is a full exemption; lower ratings reduce your taxable value by the same percentage as the rating.
Does a temporary 100% rating count?
Yes. A temporary 100% rating qualifies for the full exemption; a permanent-and-total designation is not required.
Does the exemption transfer if I sell and buy a new home?
You reapply for your new primary residence. The exemption attaches to the home you own and occupy, so each new home needs a fresh application with the county.
Is there a benefit for Veterans without a disability rating?
Yes. Every honorably discharged Veteran can claim a separate $10,000 exemption from assessed property value, independent of the disability exemption.