SOCIAL SECURITY INCOME TAX CAP

SB 156 removes income limits for New Mexico taxpayers claiming an exemption on Social Security benefits. Currently, the exemption is capped at $75,000 (married filing separately), $150,000 (joint filers), or $100,000 (single filers). The bill eliminates these caps, allowing all Social Security income to be exempt from state income tax regardless of total earnings. This change applies to taxable years beginning January 1, 2026, and directly affects New Mexico residents receiving Social Security benefits who exceed the previous income thresholds.