New Mexico Homestead Exemption: Head-of-Family, Veterans and Freeze

New Mexico's version of a homestead exemption is the head-of-family exemption in NMSA 1978, Section 7-37-4: up to $2,000 off the taxable value of residential property owned by a New Mexico resident who is the head of a family. You claim it with your county assessor no later than 30 days after the assessor mails the notice of valuation, and once it is allowed it carries forward until your eligibility or the ownership changes (Section 7-38-17).

The state layers other relief on top: a 3% residential valuation limit, a valuation freeze for low-income owners who are 65 or older or disabled, a veteran exemption, a disabled veteran exemption that is now prorated by disability rating, and property tax rebates claimed on the income tax return. Separately, Section 42-10-9 protects $150,000 of a primary residence from creditors. For other states, see our guide to homestead exemptions by state.

Information last verified on October 8, 2026. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This article covers New Mexico's head-of-family exemption (NMSA 1978, Section 7-37-4), the claim procedure in Sections 7-38-17 and 7-38-20, the valuation limit and freeze (Sections 7-36-21.2 and 7-36-21.3), the veteran and disabled veteran exemptions (Sections 7-37-5 and 7-37-5.1), the income tax rebates in Sections 7-2-14, 7-2-14.3 and 7-2-18, and the creditor homestead (Sections 42-10-9 to 42-10-14). It does not cover county-specific procedures beyond what is stated, business or agricultural property, valuation protests, or the law of other states.

Does New Mexico have a homestead exemption?

Yes, though it is modest. Section 7-37-4 provides:

"Up to two thousand dollars ($2,000) of the taxable value of residential property subject to the tax is exempt from the imposition of the tax if the property is owned by the head of a family who is a New Mexico resident"

The amount has been fixed since 1993: "for the 1993 and subsequent tax years, the exemption shall be two thousand dollars ($2,000)." The statute adds that "The exemption shall be deducted from taxable value of property to determine net taxable value of property." Because the $2,000 comes off taxable value rather than market value, the dollar saving depends on your local tax rate and is small.

Many people searching for a large New Mexico homestead exemption have found the $150,000 figure. That number belongs to the creditor and bankruptcy homestead in Section 42-10-9, a different law covered below; it does not reduce property tax.

New Mexico property tax relief at a glance

Who is eligible for the head-of-family exemption

You must own residential property in New Mexico (or hold it in a grantor trust under Internal Revenue Code sections 671 to 677, such as a typical revocable living trust, that you established), be a New Mexico resident, and be a "head of a family." The statute's definition covers a married person (only one spouse per household), a widow or widower, a head of household who supports a related person, a single person (only one per household), and a member of a condominium association who pays property tax through the association.

The exemption is limited to one claim a year in one place. Section 7-37-4 states: "A head of a family is entitled to the exemption allowed by this section only once in any tax year and may claim the exemption in only one county in any tax year."

How and when to apply

Section 7-38-17 sets the procedure: "Exemptions may be claimed by filing proof of eligibility for the exemption with the county assessor." Your county assessor supplies the claim form. We did not confirm the form's official name or number, so ask the assessor's office for it. Grant County, for example, explains its exemptions on its assessor's exemptions page.

Deadline. The claim has to be in early in the tax year: "An exemption required to be claimed under this section shall be applied for no later than thirty days after the mailing of the county assessor's notices of valuation pursuant to Section 7-38-20 NMSA 1978 in order for it to be allowed for that tax year." Section 7-38-20 requires the county assessor to mail notices of valuation by April 1 each year, so if notices go out on April 1 the window closes around May 1, and an earlier mailing means an earlier deadline. Check the mailing date on your notice.

Renewal. You do not reapply every year. Under Section 7-38-17, head-of-family exemptions "claimed and allowed in a tax year need not be claimed for subsequent tax years if there is no change in eligibility for the exemption nor any change in ownership of the property." A new owner, or an owner whose situation changes, needs to claim again.

To look up your parcel and assessor records, see our guide to New Mexico property records.

The 3% valuation limit on residential property

Section 7-36-21.2 limits how fast the assessor can raise a residential valuation. For the 2001 and later tax years, "the value of a property in any tax year shall not exceed the higher of one hundred three percent of the value in the tax year prior to the tax year in which the property is being valued or one hundred six and one-tenth percent of the value in the tax year two years prior."

The limit covers residential property generally, not only owner-occupied homes, and it needs no application. It does not hold in every year: the value resets to current and correct value in the first year a property is valued, after a change of ownership or a change of use or zoning, and physical improvements (other than solar) can be added. A "change of ownership" excludes some transfers, such as a transfer "to a trustee for the beneficial use of the spouse," so not every deed resets the value. There is no portability: the limit stays with the property, not with you.

The valuation freeze for owners 65 or older or disabled

Section 7-36-21.3 offers a stronger limit for lower-income owners:

"The valuation for property taxation purposes of a single-family dwelling owned and occupied by a person who is sixty-five years of age or older or disabled and whose modified gross income for the prior taxable year did not exceed the greater of thirty-five thousand dollars ($35,000) or the amount calculated pursuant to Subsection F of this section shall not be greater than the assessed valuation of the property"

For an owner who is 65 or older, the value is held at the assessed valuation "in the tax year in which the owner qualifies and files an application." The Subsection F amount adjusts the $35,000 base for inflation. For tax year 2026, Torrance County's application states: "Total modified gross income for the household must be $44,200 per year or less." That figure comes from a county form, so confirm the current limit with your own assessor.

The freeze holds the value, not the bill. As Torrance County's form puts it: "Please note that this freezes the value of your residential property, not your taxes." Rate changes and new levies can still raise the tax. While the freeze applies to a home, the 3% limit does not.

You apply to the county assessor with the freeze application and an income affidavit, within 30 days after the notice of valuation is mailed. After that, the statute relieves you of yearly filings once you have a track record: "An owner who applies for the limitation of value specified in this section and files proof of income eligibility for the three consecutive years immediately subsequent to the tax year for which the application is made need not claim the limitation for subsequent tax years if there is no change in eligibility."

Veteran and disabled veteran exemptions (changed in 2025 and 2026)

Veteran exemption. Section 7-37-5 was amended by Laws 2025, chapter 10 (House Bill 47). The amount off taxable value is now: "(1) for tax years 2006 through 2024, four thousand dollars ($4,000); (2) for tax year 2025, ten thousand dollars ($10,000); and (3) for tax year 2026 and subsequent tax years, the amount provided in Paragraph (2) of this subsection, adjusted for inflation." The Taxation and Revenue Department publishes the adjusted figure for county assessors. Read literally, the formula in Section 7-37-5(C) multiplies $10,000 by the price index ending during the prior tax year over the index ending in tax year 2025, so for tax year 2026 the fraction is 1 and the amount stays $10,000; the first increase can come in tax year 2027. We did not locate the Taxation and Revenue Department's published figure, so confirm the current amount with your assessor.

The statute defines a veteran as an individual who "(1) has been honorably discharged from membership in the armed forces of the United States; and (2) except as provided in this section, served in the armed forces of the United States on active duty continuously for ninety days." The veteran must be a New Mexico resident; the veteran's unmarried surviving spouse can also claim it. Both veteran exemptions also reach a home held in a grantor trust established by the veteran or the qualifying surviving spouse.

Disabled veteran exemption. Under Section 7-37-5.1, the home of a disabled veteran "is exempt from property taxation in an amount equal to the percentage of the veteran's disability as determined by federal law multiplied by the taxable value of the property after the amount that may be exempted pursuant to Section 7-37-5 NMSA 1978 is deducted." A veteran rated 100% is therefore exempt on all of the remaining taxable value, and a lower rating earns a proportional share. The veteran must have been honorably discharged, have a permanent service-connected disability, and occupy the property continuously as a principal residence.

The prorated version is new. In an August 13, 2026 release, the Taxation and Revenue Department and the Department of Veterans' Services said: "This is the first year all disabled veterans are eligible to claim a prorated tax exemption on their primary residence." According to the release, 7,096 partially disabled veterans received prorated exemptions between March and June 2026. Laws 2026, chapter 9 (House Bill 285), effective February 25, 2026, then clarified occupancy requirements, properties with more than one owner, and the claim and protest procedure.

A surviving spouse keeps the exemption on stated terms: "the property of the surviving spouse of a disabled veteran is exempt from property taxation if: (1) the surviving spouse and the disabled veteran were married at the time of the disabled veteran's death; and (2) the surviving spouse continues to occupy the property continuously." On a move, the statute gives the disabled veteran or the surviving spouse options, including to "remove the exemption for that residence and apply it to the disabled veteran's or the disabled veteran's surviving spouse's new principal place of residence."

How veterans claim. Both exemptions start with the New Mexico Department of Veterans' Services (NMDVS). The state's release explains: "Veterans seeking the standard or disabled veteran property tax exemption should contact NMDVS to obtain a certificate of eligibility. Once issued, veterans can file the certificate with their local county assessor to have the exemption applied to their property." For the disabled veteran exemption, Section 7-38-17 also requires that "a disabled veteran shall present to the assessor a form prescribed by the department certifying that the veteran is an owner of the property and occupies the property continuously as the veteran's principal place of residence." NMDVS can be reached at 1-866-433-8387.

Property tax rebates on the income tax return

Some New Mexico relief comes through the income tax return rather than the assessor. Under Section 7-2-18, residents 65 or older can claim a property tax rebate on Form PIT-RC, the Rebate and Credit Schedule filed with the PIT-1 return. The rebate covers property tax (or, for renters, 6% of gross rent) above a maximum amount that the instructions set by income.

The 2025 PIT-RC instructions list these conditions: you were 65 or older on the last day of the tax year, a New Mexico resident physically present in the state for at least six months, not claimed as a dependent, and "You have a modified gross income of $16,000 or less." The cap: "The property tax rebate cannot exceed $250 or, for a married taxpayer filing a separate return, the rebate cannot exceed $125."

A separate Low Income Property Tax Rebate (Section 4 of the PIT-RC, under Section 7-2-14.3) is a county option. The 2025 instructions limit it to residents of Los Alamos, Santa Fe, Doña Ana and Bernalillo counties with modified gross income of $24,000 or less.

The same schedule also carries the Low Income Comprehensive Tax Rebate (Section 2 of the PIT-RC, under Section 7-2-14), which is not limited to property owners or to people 65 or older; the 2025 instructions set its modified gross income limit at $36,000 or less.

Losing an exemption and penalties

When you sell the home, stop living in it, or otherwise lose eligibility, the duty to report falls on you. Section 7-38-17 requires notice to "the county assessor of the loss of eligibility for the exemption by the last day of February of the tax year immediately following the year in which loss of eligibility occurs."

The penalty covers both wrongful claims and missed notices: "A person who violates the provisions of this section by intentionally claiming and receiving the benefit of an exemption to which the person is not entitled or who fails to comply with the provisions of Subsection D of this section is guilty of a misdemeanor and shall be punished by a fine of not more than one thousand dollars ($1,000)."

The valuation freeze has its own rule in Section 7-36-21.3: an owner whose status, income or ownership changes so that the freeze no longer applies must notify the assessor by the last day of February of the following tax year, and an owner who knowingly claims and receives the freeze without being entitled to it, or who fails to give that notice, "shall be liable for all taxes due, interest and a civil penalty of one thousand dollars ($1,000)."

New Mexico homestead protection from creditors (a different law)

The creditor homestead is not a property-tax program, and none of the tax figures above apply to it. Section 42-10-9(B) provides: "The amount of the homestead exemption is: (1) one hundred fifty thousand dollars ($150,000); or (2) three hundred thousand dollars ($300,000) if the spouse of the person claiming the exemption died within two years prior" to the claim, where the spouse could also have claimed it. The current amounts come from a 2023 amendment (Laws 2023, chapter 104).

Section 42-10-14 adjusts these dollar amounts for inflation every two years, beginning July 1, 2025. The court's claim-of-exemption form revised October 31, 2025 still shows $150,000, and we did not find a published adjusted figure, so confirm the current amount before relying on it.

There is no acreage limit. The protected "domicile" is broad: "any shelter or dwelling used by the person as a primary residence and may include a mobile home, trailer, recreational vehicle, outbuilding or other similar shelter." A resident who has no homestead can instead claim $15,000 of other property under Section 42-10-10.

No recorded declaration is required. Instead, after a creditor obtains a writ, the debtor "shall file a claim of exemption or priority in the appropriate court; provided that the time to file that claim of exemption shall not be less than ten days after the filing of a writ of execution" (Section 42-10-13).

The protection has exceptions. Section 42-10-11 states: "The provisions of this article [42-10-9 to 42-10-12 NMSA 1978] do not apply or extend to taxes, garnishment, recorded liens of mortgagees or lessors or recorded liens of laborers or materialmen for labor or materials furnished for the construction or repair of the dwelling house." Section 42-10-9 itself adds that it "shall not apply to garnishment or properly perfected liens of secured creditors."

In bankruptcy, New Mexico has not opted out of the federal list. The U.S. Bankruptcy Court for the District of New Mexico explained in In re Romo: "New Mexico has not opted out of the federal bankruptcy exemption scheme, such that a New Mexican filing for bankruptcy may choose to claim either (i) the federal bankruptcy exemptions under § 522(d) or (ii) federal non-bankruptcy exemptions and applicable New Mexico state or local exemptions." For how that choice plays out, see our guide to New Mexico bankruptcy.

The probate family allowance

New Mexico's probate code gives a surviving spouse a family allowance rather than a separate homestead allowance. Section 45-2-402 provides: "A decedent's surviving spouse is entitled to a family allowance of thirty thousand dollars ($30,000)." For how it fits into an estate, see our guide to New Mexico probate.

Is a property-tax change on the November 2026 ballot?

No. According to the Legislative Council Service's summary of the four constitutional amendments on the November 3, 2026 ballot, they concern governor veto messages and pocket vetoes, the timing of school elections, regent nominating committees, and legislative salaries. None addresses property tax or the homestead exemption. We relied on that summary and did not open the Secretary of State's ballot page.

Related

• Homestead exemptions by state
• New Mexico bankruptcy laws
• New Mexico probate laws
• New Mexico property records

This article is general legal information about New Mexico law (NMSA 1978, Sections 7-37-4, 7-37-5, 7-37-5.1, 7-36-21.2, 7-36-21.3, 7-38-17, 7-38-20, 7-2-14, 7-2-18 and 42-10-9 to 42-10-14), verified as of October 8, 2026. It is not tax or legal advice. For your situation, contact your county assessor, the New Mexico Taxation and Revenue Department, the Department of Veterans' Services, or a lawyer licensed in New Mexico.

Last updated: October 8, 2026.

Frequently Asked Questions

How much is the homestead exemption in New Mexico?

The head-of-family exemption in NMSA 1978, Section 7-37-4 takes $2,000 off the taxable value of residential property owned by a New Mexico resident head of a family. Your saving depends on your local tax rate. The $150,000 figure often quoted is the separate creditor homestead in Section 42-10-9.

When is the deadline to file for the head-of-family exemption in New Mexico?

Section 7-38-17 requires the claim no later than 30 days after the county assessor mails the notices of valuation for it to apply that tax year. Assessors must mail the notices by April 1 (Section 7-38-20), so check the mailing date on yours.

Do I have to reapply for the homestead exemption every year in New Mexico?

No. Once the head-of-family exemption is claimed and allowed, it need not be claimed again unless your eligibility or the ownership changes (Section 7-38-17). If you lose eligibility, you must tell the assessor by the last day of February of the following tax year.

How much is the veteran property tax exemption in New Mexico?

Section 7-37-5 sets it at $10,000 off taxable value for tax year 2025, adjusted for inflation for tax year 2026 and later. Disabled veterans can also exempt their disability percentage of the remaining taxable value under Section 7-37-5.1. Both start with a certificate of eligibility from the Department of Veterans' Services.

Does New Mexico freeze property taxes for seniors?

It freezes the value, not the tax. Under Section 7-36-21.3, an owner-occupant of a single-family home who is 65 or older or disabled, with income at or below the inflation-adjusted limit, can apply to the county assessor to hold the value at the application-year level. Torrance County's 2026 form lists a $44,200 household income limit.

Is there a cap on property value increases in New Mexico?

Yes. Section 7-36-21.2 limits a residential valuation to the higher of 103% of the prior year's value or 106.1% of the value two years earlier, with resets after a change of ownership and in other listed cases.

Does the New Mexico homestead exemption protect my house from creditors?

Section 42-10-9 protects $150,000 of a primary residence, or $300,000 if the claimant's spouse died within two years before the claim, but it does not apply to taxes, garnishment, recorded mortgage, lessor or construction liens (Section 42-10-11), or properly perfected liens of secured creditors (Section 42-10-9). In bankruptcy, New Mexico debtors may choose the federal exemptions instead.