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HB221 • 2026

ARMED FORCES RETIREMENT PAY TAX EXEMPTION

ARMED FORCES RETIREMENT PAY TAX EXEMPTION

Taxes
Did Not Pass

The latest official action shows that this bill did not move forward in that session.

Sponsor
Representative John Block, Representative Cynthia Borrego, Representative Jonathan A. Henry, Representative Stefani Lord, Representative Alan T. Martinez, Representative Jimmy G. Mason
Last action
Official status
[3] HLVMC/HTRC-HLVMC [5] DP-HTRC API.
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

ARMED FORCES RETIREMENT PAY TAX EXEMPTION

ARMED FORCES RETIREMENT PAY TAX EXEMPTION

What This Bill Does

  • ARMED FORCES RETIREMENT PAY TAX EXEMPTION

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-02-04 New Mexico Legislature

    HLVMC: Reported by committee with Do Pass recommendation

  2. 2026-01-29 New Mexico Legislature

    Sent to HLVMC - Referrals: HLVMC/HTRC

  3. New Mexico Legislature

    Action Postponed Indefinitely

Official Summary Text

ARMED FORCES RETIREMENT PAY TAX EXEMPTION

Current Bill Text

Read the full stored bill text 
HB0221

HOUSE BILL 221

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

John Block
and
Stefani Lord
and
Alan T. Martinez

and
Jonathan A. Henry
and
Jimmy G. Mason

AN ACT

RELATING TO TAXATION; REMOVING THE LIMITATION ON THE AMOUNT OF
THE INCOME TAX EXEMPTION FOR ARMED FORCES RETIREMENT PAY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.
Section 7-2-5.13 NMSA 1978 (being Laws 2022,
Chapter 47, Section 6, as amended) is amended to read:

"7-2-5.13. EXEMPTION--ARMED FORCES RETIREMENT PAY.--

A. An individual who is an armed forces retiree or
the surviving spouse of an armed forces retiree may claim an
exemption in [
an amount equal to thirty thousand dollars
($30,000) of
]
the amount of the retiree's
armed forces
retirement pay includable, except for this exemption, in net
income.

B. As used in this section, "armed forces retiree"
means a former member of the armed forces of the United States
who has qualified by years of service or disability to separate
from military service with lifetime benefits."

SECTION 2.
APPLICABILITY.--The provisions of this act
apply to taxable years beginning on or after January 1, 2026.

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