MEDICAL CARE EXPENSES TAX DEDUCTION

HB 224 expands New Mexico's tax deduction for unreimbursed medical expenses to apply to all taxpayers, regardless of income level - replacing previous income-based limits. It establishes tiered deduction rates (10%, 15%, or 25% of eligible medical costs) based on filing status and adjusted gross income, with lower-income taxpayers receiving higher percentages. Eligible expenses include doctor visits, prescriptions, medical insurance premiums, and other health care costs as defined in the bill. The law takes effect for tax years beginning January 1, 2026.