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Veteran Property Tax Exemption — New Mexico

New Mexico's Disabled Veteran Property Tax Exemption removes $40,000 of assessed value from your primary residence — and after a 2023 constitutional amendment, veterans with partial ratings finally get a slice too.

Who qualifies

Veterans with a 100% total and permanent service-connected disability (full $40,000 exemption); a 2023 constitutional amendment and implementing legislation extended partial exemptions to veterans with lesser (50%+) ratings. Surviving spouses qualify

Benefit

$40,000 off assessed value (New Mexico assesses at one-third of market value, so $40,000 assessed covers roughly $120,000 of market value); partial amounts for partial ratings under the expanded law

How to apply

File the veteran/disabled-veteran exemption application (NMDVS Form, e.g. Veterans Exemption DVS1) with your county assessor

Watch out

Taxation & Revenue reported 7,096 partially disabled veterans receiving the expanded exemption in a recent application window — the partial tier is real and new; confirm current amounts with your assessor

How it works

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Not yet rated? Start there

Every one of these programs hinges on a VA service-connected rating. If you have not filed a claim, that is the starting point — a free, VA-accredited VSO (DAV, American Legion, VFW) will file it for you at no cost. A higher rating unlocks not just property-tax relief but healthcare, income benefits, and — for business owners — SDVOSB contracting eligibility.

Official sources

New Mexico Department of Veteran Services — State Benefits: https://www.dvs.nm.gov/benefits/
NMSA 1978 Section 7-37-5.1 — Disabled veteran exemption: https://law.justia.com/codes/new-mexico/chapter-7/article-37/section-7-37-5-1/
NM Taxation & Revenue — Veterans Benefit from Expanded Property Tax Exemptions: https://www.tax.newmexico.gov/wp-content/uploads/2026/08/20260813_New-Mexico-Veterans-Benefit-from-Expanded-Property-Tax-Exemptions.pdf

Free eligibility check for New Mexico

County-specific rules, amounts, and deadlines — plus a ready-to-sign filing package if you qualify. 100% free on WriteOffOS.

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