Bill > HB92

This bill expands the exemption for Social Security income, meaning less of your Social Security benefits will be subject to state income tax. Currently, individuals can claim an exemption for their Social Security income if their adjusted gross income (AGI), which is your income after certain deductions, is below specific thresholds: $75,000 for married individuals filing separately, $150,000 for heads of household, surviving spouses, and married individuals filing jointly, and $100,000 for single individuals. This bill amends the law to allow individuals to claim an exemption based on a percentage of their Social Security income, with the percentage increasing over time. For taxable years beginning in 2026, 20% of Social Security income will be exempt, rising to 40% in 2028, 60% in 2030, 80% in 2032, and finally 100% in 2034, with the full exemption remaining in place until January 1, 2036. This phased approach aims to gradually reduce the tax burden on Social Security benefits for all taxpayers, regardless of their AGI.

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https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=92&year=26