Yes — with exemptions for many retirees.
New Mexico taxes Social Security benefits only for higher earners: benefits are exempt for single filers under $100,000 and joint filers under $150,000 of income. Most retirees fall under those thresholds and owe no state tax on benefits.
Note: this covers state tax only. The federal government may tax up to 85% of your benefits depending on your combined income, regardless of where you live.
See how your claiming age affects your benefit.
Reviewed 2026-06-17. Verify with the New Mexico Department of Revenue.
Updated July 2026