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New Mexico veteran disability benefits

State benefits that New Mexico offers veterans with a service-connected disability, on top of your federal VA compensation. Each one links to its official source. This is educational information, not legal advice, and New Mexico's agency makes the final eligibility call.

Property tax

Disabled Veteran Property Tax Exemption

Property tax exemption on a principal residence, proportional to the rating beginning in 2026.

Historically 100% = full exemption; from tax year 2026 the exemption is proportional to the federal disability rating (any rating qualifies for a partial exemption). Confirm current amount with county assessor.

Official source (verified 2026-06-08)
Income tax

Armed Forces Retirement Pay Exemption

Military retirement pay is exempt from New Mexico income tax (full exemption from tax year 2026).

Not rating-gated (HB-221). VA disability pay is not state-taxed.

Official source (verified 2026-06-08)
Vehicle & DMVTypically requires a 50%+ combined rating

Vehicle Registration Fee Reduction & Free DV Plate

One-third reduction in vehicle registration fees; 50%+ disabled veterans get a free DV plate.

Registration-fee reduction available more broadly (requires NM DVS Certificate of Eligibility); free DV plate requires 50%+.

Official source (verified 2026-06-08)
Recreation & licensesTypically requires a 100%+ combined rating

Free Lifetime Small-Game & Fishing License (100%)

100% disabled veterans get a free lifetime small-game/fishing license; any rating gets a $10 reduced-fee license.

Any service-connected rating qualifies for the $10 reduced-fee license.

Official source (verified 2026-06-08)
Employment

Veterans Hiring Preference

Disabled veterans receive 10 added points (vs 5 for other veterans) on state civil-service exam scores.

10-point preference requires a service-connected disability (any rating).

Official source (verified 2026-06-08)

Most state benefits scale with your VA combined rating.

Estimate your combined rating for free, then see what you can claim to reach the thresholds above.

VA Disability Pro is an independent tool. It is not the VA, not a law firm, and not a VA-accredited representative. State benefits and eligibility change; always confirm with the official sources linked above.