How to Claim New Mexico Property Tax Rebates for Qualifying Residents

New Mexico offers two property tax rebates designed to ease housing costs for qualifying taxpayers based on age, income, and county of residence.

Property Tax Rebate for Persons Age 65 or Older

Taxpayers who are 65 or older by the end of the tax year can claim a principal residence rebate based on property taxes billed or rent paid. For most qualifying individuals, the maximum rebate is $250, while taxpayers filing as Married Filing Separately are eligible for a maximum of $125. No rebate is issued for property that remains exempt from property taxation.

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To qualify for this senior-focused relief, a taxpayer must meet strict criteria. Modified gross income cannot exceed $16,000, and the individual must have maintained legal residency in New Mexico while being physically present in the state for at least six months of the tax year. Furthermore, the claimant cannot be eligible to be claimed as a dependent by another filer, nor can they have spent more than six months of the year as an inmate in a public institution.

Land limitations also apply to the calculation. Only the dwelling, related structures, and the land reasonably necessary for residential use—capped at a maximum of five acres—may be included. If a property spans more than five acres, the claimant must adjust the tax calculation to reflect exclusively the qualifying residential portion.

Additional Low-Income Property Tax Rebate for Select Counties

A separate low-income rebate targets residents living in Bernalillo, Doña Ana, Los Alamos, or Santa Fe counties. This program offers a maximum rebate of $350 for most taxpayers and $175 for those filing as Married Filing Separately. Crucially, this specific rebate carries no age requirement.

To qualify for this county-specific assistance, a resident’s principal home must be located within one of the four designated counties, and their modified gross income must not exceed $24,000. Applicants must also meet the state residency rules, including being physically present in New Mexico for at least six months, not being claimed as a dependent, and not residing in a public institution for over half the year.

Taxpayers who are 65 or older and maintain a principal residence in Bernalillo, Doña Ana, Los Alamos, or Santa Fe County may qualify to receive both the senior property tax rebate and the additional low-income rebate simultaneously.

How to Claim the Rebates on Your Return

Claimants file these credits through the state section of their tax software. In the program interface, users navigate to the state section, select the three dots to edit the New Mexico return, choose credits, and select either the Property Tax Rebate for Persons 65 or Older or the Low Income Property Tax Rebate for Los Alamos, Santa Fe, Doña Ana, or Bernalillo County Residents Only. These amounts are claimed on Schedule PIT-RC, the New Mexico Rebate and Credit Schedule, and carried directly over to the state tax return.