NO ARMED FORCES RETIREMENT TAX EXEMPT LIMIT

SB 497 removes the $30,000 cap on the tax exemption for armed forces retirement pay in New Mexico. It directly affects military retirees and their surviving spouses by allowing the full amount of their retirement income to be exempt from state income tax, rather than only the first $30,000. The bill amends Section 7-2-5.13 of New Mexico's tax code to eliminate the specified limit, effective for tax years beginning January 1, 2026. This change would provide broader tax relief for military retirees and their families without altering existing eligibility criteria.