For military retirement income included in the federal AGI, New Mexico offers a deduction from New Mexico taxable income as follows:
| Tax Year | Allowed Exemption per qualified individual |
| 2022 | $10,000 |
| 2023 | $20,000 |
| 2024 | $30,000 |
| 2025 | $30,000 |
| 2026 | $30,000 |
To subtract military retirement income from the New Mexico individual tax return in TaxSlayer ProWeb, from the New Mexico Tax Return Menu select:
- Deductions from Income
- Enter the amount of your retirement pay included in net income - Enter the amount as a positive number.
Additional Information:
New Mexico: Forms and Instructions
TaxSlayer Pro strives to keep the information on this page timely and accurate but makes no promise or guarantee about the timeliness, accuracy, or completeness of the contents of this page. This is general information and is not intended to be tax advice. You are encouraged to also review the underlying state resources and publications.