UNIFORMED SVC. RETIREMENT PAY TAX EXEMPTION

SB0116

SENATE BILL 116

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

INTRODUCED BY

Jay C. Block
and
Anthony L. Thornton

AN ACT

RELATING TO INCOME TAX; REMOVING THE LIMIT ON THE AMOUNT OF THE
INCOME TAX EXEMPTION FOR UNIFORMED SERVICES 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
]
UNIFORMED SERVICES

RETIREMENT PAY.--

A. An individual who is [
an armed forces
]
a
uniformed services
retiree or the surviving spouse of [
an armed
forces
]
a uniformed services
retiree may claim an exemption in
[
an amount equal to thirty thousand dollars ($30,000) of armed
forces
]
the amount of the retiree's uniformed services

retirement pay includable, except for this exemption, in net
income.

B. As used in this section:

(1) "uniformed service" means:

(a) active and reserve components of the
army, navy, air force, space force, marine corps or coast guard
of the United States;

(b) the United States merchant marine;

(c) the commissioned corps of the United
States public health service;

(d) the commissioned corps of the
national oceanic and atmospheric administration of the United
States; or

(e) the national guard of a state; and

(2)
"[
armed forces
]
uniformed services

retiree" means a former member of the [
armed forces
]
uniformed
services
of the United States who has qualified by years of
service or disability to separate from [
military
]
uniformed

service with lifetime benefits."

SECTION 2.
APPLICABILITY.--The provisions of this act
apply to taxable years beginning on or after January 1, 2027.

- 2 -