What New Mexico actually takes from a 401(k) withdrawal, a pension, and Social Security — in dollars, against the state’s own brackets and exclusions rather than a yes-or-no list.
Long-term index-fund growth after expense-ratio drag — and what your state takes from the gains at withdrawal.
When your RMDs start under SECURE 2.0, how much this year's is, and what missing it costs.
2026 limits, employer match, the 60-63 super catch-up, and whether the Roth catch-up mandate applies to you.
A required minimum distribution is ordinary income, taxed at your top bracket and often pushing you into the next one. Here is the federal tax on RMDs from $20,000 to $75,000 at different income levels, why the default 10% withholding usually leaves a bill, how to avoid an underpayment penalty, and the three side effects that make the real rate higher than the bracket.
The required minimum distribution on every common balance at every age from 73 to 95, worked from the IRS table, plus what happens to the account over twenty years of withdrawals at 0%, 5% and 7% returns. The short version: the share you must take rises every year, and at good returns the dollar amount keeps rising with it.
What moving actually saves, on your own income mix rather than a headline rate — and how to establish domicile so the state you left cannot follow you.
Which account to draw first, priced. The three cliffs a withdrawal can cross without warning, the conversion window almost nobody uses, and why the order is the last big decision you can still change.
New Mexico guide
On the ordinary retirement profile — $34,000 of Social Security and $61,000 of plan distributions — New Mexico takes $1,701 a year in state income tax.
That is the number people compare, and it is the smallest of three. Property tax adds about $2,249 on the state's $357,000 median home, and insurance another $2,800. The three together come to $6,750, placing New Mexico 18th of 50.
A note before you start. This is general education, not tax advice. Every New Mexico figure comes from this site's own fifty-state income-tax dataset and its retirement tax engine, computed for a single filer aged 70 unless stated otherwise; property tax, median home price and insurance figures come from the site's core state dataset. Rates are for tax year 2026. Property tax is assessed locally in most states, so the effective rate here is a statewide figure rather than your county's.
On Social Security. New Mexico is one of the small group of states that still taxes Social Security in 2026, and the thresholds are the whole story. Below the threshold the federally taxable portion of benefits is exempt in full; at or above it, none of the exemption is available. It is a cliff, not a phase-out: a married couple at $149,999 exempts their benefits entirely and the same couple at $150,001 exempts nothing, which is the single most consequential fact about New Mexico retirement taxation and the one every summary drops. Note the married-filing-separately figure of $75,000 is exactly half the joint figure, so filing separately buys nothing. Thresholds are not indexed — they are fixed dollar amounts in the 2022 legislation and have not moved since, so inflation erodes the exemption every year. thresholdBasis is recorded as federal-agi because New Mexico's PIT begins from federal adjusted gross income and the statute's measure is 'adjusted gross income'; the Taxation and Revenue Department's own public page says only 'income' without qualifying it, so a reader within a few thousand dollars of the line should check the PIT-1 instructions rather than rely on this field.
Read the full New Mexico guide →18 min read · Updated 2026-09-03