New Mexico Disabled Veteran Benefits

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If you are a disabled veteran living in New Mexico, or thinking about moving here, this page puts every state-level benefit tied to your VA (U.S. Department of Veterans Affairs) disability rating in one place: the property tax exemption (New Mexico just rebuilt this one), state income tax breaks, vehicle plates and fees, parks and hunting/fishing, education for you and your kids, the state veterans' home, hiring preference, and more. Every dollar figure, deadline, and form name below comes from an official New Mexico source, and I link that source so you can check it yourself. Where the state's own pages leave a number unsettled, I tell you to confirm it rather than guess.

Plain-language promise: I keep the how-to steps here so you can act. The only thing I route out is filing or increasing a VA claim, because that is free claims work best handled by an accredited Veterans Service Officer (VSO), never a paid company.

New for the 2026 tax year — New Mexico now scales the disabled-veteran property tax break to your VA rating. Voters approved a constitutional change in November 2024, and the Legislature passed a follow-up law (signed March 2025) to carry it out. Starting with the 2026 tax year, the exemption on your primary residence equals your VA service-connected disability percentage — a 70% rating cuts your property tax on that home by 70%, and a 100% rating means a full (100%) exemption. This replaces the old all-or-nothing rule, under which only a 100% permanent-and-total veteran got a full exemption and everyone else got only the small flat veteran exemption. The same law also raised the separate flat veteran exemption from $4,000 to $10,000 of taxable value (effective 2025, adjusted for inflation after). A second follow-up law signed February 2026 (House Bill 285) added cleanup rules on continuous occupancy, homes owned by more than one disabled veteran, and moving mid-year — see below. Application forms and county procedures are still settling — do not assume, call the New Mexico Department of Veterans' Services and your county assessor now.

Sources the 2025 law · the 2026 follow-up law (HB285) · State Veterans' Services

Property tax exemption

What it is: New Mexico has two separate veteran property tax programs, and you can generally hold both because they come from different parts of the constitution. Neither is automatic — you first get a Certificate of Eligibility from the New Mexico Department of Veterans' Services (DVS), then present it to your county assessor before the county's filing deadline. By law the county mails its Notice of Value on or before April 1 each year, and you have 30 days from that mailing to file (so the window typically runs into early May; confirm your county's exact date). Apply on the DVS Veterans Property Tax Exemption application (Form DVS1, PDF).

Exemption still pending when your Notice of Value arrives? File a protest, don't just wait. A February 2026 cleanup law (House Bill 285) replaced the old open-ended catch-up rule with a formal protest process. If your Certificate of Eligibility hasn't come through by the time your county mails its Notice of Value — including because you're still waiting on a VA disability determination — you can file a protest (the same process used to protest a valuation or classification) to preserve your claim for the current year rather than losing it. If you're specifically waiting on a VA determination, you generally have up to 180 days during the protest period to get your certification in; a certification that arrives after that window applies starting the following tax year instead. Don't sit on a pending claim — ask your assessor about filing a protest as soon as you know your exemption won't be certified before the Notice of Value deadline.

The two programs:

• Disabled-veteran exemption (the big one, rebuilt for 2026): the exemption on your primary residence now equals your VA service-connected disability rating percentage for the 2026 tax year and after. A 100% rating = a full exemption (no property tax on that home, historically up to 5 acres of land). A partial rating gives a proportional cut (50% rating → 50% off, and so on). This is the program the 2024 voter-approved amendment and the 2025 law that carries it out put in place.
• Flat veteran exemption ($10,000 of taxable value): a separate, general exemption for any honorably discharged veteran (no disability rating required) or an unremarried surviving spouse, applied to your residence or, if you don't own a home, toward vehicle registration. Raised from $4,000 to $10,000 of taxable value by the 2025 law, effective 2025 and inflation-adjusted after.
• 2026 cleanup law (House Bill 285, signed February 2026): you must occupy the home continuously as your primary residence to keep the exemption (state regulation defines this as living in the home at least 185 days a year and being domiciled in New Mexico as of January 1); if two or more disabled veterans co-own the same property, the assessor uses whichever owner's disability percentage is highest rather than splitting it; and if you sell and buy a new primary residence mid-year, you can choose to keep the exemption on the old home for the rest of that tax year or move it to the new home. The same law also replaced the old late-filing catch-up rule with a protest process — see above.

The routes to a FULL (100%) exemption — and one open question:

• A 100% VA schedular rating on your primary residence gives the full exemption under the new proportional rule. Confirm the current mechanics on the DVS1 application.
• Surviving spouse: the exemption continues for the surviving spouse who was married to the veteran at the time of the veteran's death and continues to occupy the home as their principal place of residence. Confirm your exact situation with DVS or your county assessor.

1. Gather your VA rating decision letter (showing your percentage), your discharge document (DD Form 214), and proof the home is your primary New Mexico residence.
2. Complete the DVS1 Veterans Property Tax Exemption application and submit it to DVS to receive your Certificate of Eligibility. Questions: 1-866-433-8387 or [email protected].
3. Take the certificate to your county assessor's office before the county's filing deadline. Ask them to apply both the disabled-veteran (proportional) exemption and, if it helps, the $10,000 flat exemption.
4. Check your next property tax bill for the exemption line, or call the assessor a few weeks after filing, to confirm it posted.

Sources the 2025 law · 2026 cleanup law (HB285) · State Veterans' Services

State income tax

What it is: New Mexico does not tax your already federally tax-free VA disability compensation, and it exempts a chunk of military retirement pay.

• VA disability compensation is federally tax-free, and New Mexico starts from your federal adjusted gross income — so it does not appear as New Mexico taxable income.
• Military retirement pay exclusion: New Mexico phased in an exclusion for uniformed-services retirement pay and Survivor Benefit Plan (SBP) payments — $10,000 (2022), $20,000 (2023), and $30,000 per year starting tax year 2024. Corrected 2026-08-15: this exclusion is not scheduled to expire after 2026 — a 2024 law (Ch. 67, Laws of 2024, from HB252) removed the earlier 2024-2026 sunset and extended eligibility to surviving spouses, effective for tax years beginning on/after January 1, 2025. This is for uniformed-services retirees and their surviving spouses generally, not disabled-veteran-specific. Confirm the current-year cap directly with NM Taxation & Revenue before you rely on it, since it is a set dollar figure that could still change by future legislation.
• A separate 2026 bill (SB116) that would have raised the cap above $30,000 starting 2027 did not pass — postponed indefinitely, January 26, 2026. That does not put the existing $30,000 exclusion itself at risk; the two are separate facts.
• Social Security income is exempt from New Mexico income tax for most filers (a general state policy, not veteran-specific).

1. Confirm your VA disability compensation never shows up as income on your New Mexico return (it should not be on your federal return either, and New Mexico begins from your federal figures).
2. If you receive military retirement pay or SBP, take the exclusion on the current-year New Mexico return; check the current-year NM Taxation & Revenue instructions for the exact line and dollar cap.
3. If a prior return taxed your VA compensation or military retirement pay, fix it with a preparer familiar with military filings or by contacting NM Taxation & Revenue — that is a filing mechanic, not claims work.

Sources State Tax & Revenue Dept · NMSA 7-2-5.13 (2024 amendment, Ch. 67 Laws of 2024 / HB252, removing the sunset) · the 2026 bill (SB116, died)

Vehicles, plates & tolls

What it is: the New Mexico Motor Vehicle Division (MVD) issues free disabled-veteran plates, waives registration fees for certain veterans, and exempts the most severely injured veterans from the vehicle excise tax. New Mexico has no state toll roads, so there is no toll benefit. All the plates below use one application: MVD Application for Military/Veteran Plate (Form MVD10353, PDF).

• Disabled Veteran plate (50% or greater) — free plate, no registration fee: a veteran with a 50%+ service-connected disability gets the plate and the registration fee waived, on up to two vehicles (motorcycles included). An optional wheelchair symbol can be added if you also qualify for the disabled-person placard/plate.
• Other free honoree plates (plate and registration waived): Purple Heart, Medal of Honor, Ex-Prisoner of War, and Pearl Harbor Survivor plates. Purple Heart is allowed on up to two vehicles. Same MVD10353 application.
• Reduced registration fee (two-thirds rate): eligible veterans who don't have enough property to use the full property-tax exemption may register a vehicle at two-thirds of the standard rate. Confirm which veterans qualify with MVD or DVS.
• Motor Vehicle Excise Tax exemption — loss or loss of use of limbs: a resident veteran who, from service, suffered the loss or complete loss of use of one or both legs (at or above the ankle) or one or both arms (at or above the wrist) is exempt from the state Motor Vehicle Excise Tax and registration fees on one vehicle. Extra medical certification of the qualifying condition is required.

1. Get your VA rating letter (showing 50% or more for the disabled-veteran plate) and your DD Form 214.
2. Complete the MVD10353 plate application and submit it with your documentation to MVD (or start the certificate through DVS).
3. If you had a qualifying limb loss/loss of use, ask MVD specifically about the excise-tax exemption on one vehicle and what medical certification they need.
4. Confirm at the counter that the plate and registration fees are waived before you pay.

Sources Motor Vehicle Division · State Veterans' Services

Recreation: parks, hunting & fishing

What it is: a free lifetime state-parks pass for New Mexico resident veterans, and free or low-cost hunting/fishing licenses run through the Department of Game & Fish.

• State Parks Lifetime Veteran Pass (all NM resident veterans): as of July 1, 2025, every New Mexico resident veteran — not just disabled veterans — can get a free lifetime pass for day-use and camping at state-parks-division parks. It does not cover reservation-system fees, group shelters/rally sites/group camping, or special facilities (cabins, yurts, event spaces). Apply through DVS on the State Park Unlimited Pass application (Form DVS15, PDF).
• State Monument & Museum Pass: a New Mexico resident veteran rated 50% or more service-connected disabled (discharge other than bad-conduct/dishonorable) can get one free personal-use pass covering unlimited entry to New Mexico's state museums and historic sites. Apply on the DVS16 Museums and Historic Sites Pass application (PDF) with proof of NM residency and your VA award letter.
• Hunting/fishing — 100% disabled veterans: a NM resident rated 100% service-connected can get a free lifetime Disabled Veteran game-hunting & fishing card (a habitat stamp/validation may still be required where applicable). Apply on the NM Game & Fish Disabled Veteran Card Application.
• Hunting/fishing — disabled veterans below 100%: a NM resident disabled veteran under the 100% threshold can buy a $10 combination game-hunting & fishing license.

1. For the parks pass, complete the DVS15 application with your DD Form 214 and proof of NM residency, and send it to DVS.
2. For the free lifetime hunting/fishing card, confirm your 100% VA rating and file the Disabled Veteran Card Application. Questions: NM Game & Fish, 1-888-248-6866.
3. If you are under 100%, ask a license vendor (or Game & Fish online) for the $10 combination license, and pick up any required habitat stamp.

Sources State Parks Division · Game & Fish Dept · State Veterans' Services

Education for you & your family

What it is: immediate in-state tuition, plus state scholarships administered by DVS for veterans and for the children of veterans who died in service.

• In-state tuition, no waiting period: veterans, their spouses, and their children using VA education benefits get in-state resident tuition rates at New Mexico public colleges, universities, and vocational/training programs without first establishing New Mexico residency.
• Wartime Veterans Scholarship (veteran only): covers tuition and required books for an undergraduate, master's, or doctoral program at a New Mexico public or Tribal institution, for veterans with qualifying service medals for service after August 1, 1990. Apply on the Wartime Veteran Scholarship application (Form DVS14, PDF).
• Vietnam Veterans Scholarship (veteran only): tuition and required books at New Mexico state institutions for veterans with the Vietnam Campaign Medal and an honorable discharge. Apply on the Vietnam Veteran Scholarship application (Form DVS7, PDF).
• Children of Deceased Veterans Scholarship (dependents): free tuition at state schools plus up to $300/year toward fees, room/board, books and supplies, generally for dependents ages 16–26 of veterans killed in action or who died of a service-connected cause (and certain NM National Guard deaths). Apply on the Children of Deceased Veterans Scholarship application (PDF). Confirm the current dollar figure and age window with DVS, as this is an older program.

1. Decide which fits: Wartime or Vietnam scholarship for you as the veteran, or the Children of Deceased Veterans scholarship for your dependent.
2. Complete the matching DVS form above and submit it with your VA and service documentation to DVS (1-866-433-8387, [email protected]).
3. Tell your school's financial-aid office you have a state scholarship so it applies against tuition owed, and confirm in-state rates if you are using VA education benefits.

Sources Higher Education Dept

State Veterans' Home & long-term care

What it is: New Mexico runs the New Mexico State Veterans' Home, a skilled-nursing facility in Truth or Consequences, operated under the state Department of Health.

• Who can be admitted: honorably discharged veterans with 90+ days of service and their spouses; Gold Star Parents and certain reserve-component members meeting residency rules may also qualify. Veterans from any state may apply, but New Mexico residents get preference when there is a waiting list.
• Disqualifying factors: a dishonorable discharge, medical or mental conditions beyond the Home's capability, and a history of violent crime, substance abuse, or sexual offenses.
• How the VA can pay: for higher-rated service-connected disabled veterans, the VA may cover the cost of state-home nursing care — confirm your specific situation with the Home's admissions office, since the exact VA-paid arrangement depends on your rating.

1. Call the New Mexico State Veterans' Home at 575-894-4200 (toll-free 800-964-3976), 992 South Broadway, Truth or Consequences, NM 87901, and ask for the admissions packet and physician's-statement forms.
2. Confirm you meet the service, care-need, and (for waiting-list priority) residency requirements.
3. Have your DD Form 214 and VA rating letter ready, and ask admissions how your rating affects what, if anything, you pay.

Sources State Dept. of Health

State hiring & civil service

What it is: New Mexico adds points to your state civil-service score for veteran status, with extra points if you are a service-connected disabled veteran. Administered by the State Personnel Office (SPO).

• Veterans preference points: a veteran (or current National Guard member) gets 5 points added to a passing score; a service-connected disabled veteran gets an additional 5 points (10 total). Points apply only to passing scores, after documents are verified.
• Documentation: submit your DD Form 214 (Long Form) and, for the disabled-veteran preference, your VA disability determination letter, at the time you apply.

1. When you apply for a New Mexico state job/exam, claim veteran status and, if applicable, disabled-veteran status.
2. Upload your DD Form 214 and VA rating letter with the application so the 5 (or 10) points can be verified and applied.
3. Questions on documentation go to the New Mexico State Personnel Office.

Sources State Personnel Office · application guide

Other: burial, business & procurement

What it is: state veterans cemeteries, a state procurement/business preference for veteran-owned firms, and an employer hiring credit.

• State veterans cemeteries: New Mexico operates four state veterans cemeteries — Fort Stanton, Gallup, Angel Fire, and Taos — with a fifth planned for Carlsbad. They offer burial for eligible veterans and dependents; confirm eligibility and any costs with the specific cemetery.
• Federal cemeteries & burial benefits: Santa Fe National Cemetery and Fort Bayard National Cemetery serve New Mexico under the VA National Cemetery Administration, and federal burial benefits (burial flag, government headstone/marker, Presidential Memorial Certificate) apply wherever you are buried.
• Veteran-owned business procurement preference: New Mexico gives certified resident veteran-owned businesses an additional preference when bidding on state contracts (a resident-veteran business/contractor certification, valid for a set term). Apply through NM Taxation & Revenue.
• Employer hiring credit: New Mexico offers employers a business tax credit of up to $1,000 per recently-returned veteran hired — an employer-side incentive, worth knowing if you are job-hunting or own a business. Confirm current-year availability with NM Taxation & Revenue.

1. For burial, contact the specific state cemetery (or a federal cemetery via the VA cemetery locator) and confirm eligibility and any pre-need paperwork.
2. If you own a business, get the resident veteran business/contractor certification through NM Taxation & Revenue before bidding on state contracts.

Sources cemeteries directory · VA National Cemeteries · VA burial benefits · Business Preference Certification · State Veterans' Services

Who to call

The New Mexico Department of Veterans' Services (DVS) is your single front door for the state programs above and for a free accredited VSO to help with a VA claim, a rating, or applying for these benefits.

• Website: dvs.nm.gov
• Phone: 1-866-433-8387
• Benefits email: [email protected] · general: [email protected]
• Local field/VSO offices: NM DVS — Field Services
• Property tax questions: your county assessor (they apply the exemption)

1. Anything tied to your actual VA rating — filing a new claim, appealing, or arguing for a higher percentage — goes to a free accredited VSO. Call DVS at 1-866-433-8387 or find one at VA.gov. Never pay a private company for basic claims help.
2. State-program questions (property tax, plates, parks, hunting/fishing, education, the veterans' home, hiring) go to the specific office linked in that section, or start at dvs.nm.gov.

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