N.M. Stat. § 7-2-5.11 (2026)

A salary paid by the United States to a taxpayer for active duty service in the armed
forces of the United States is exempt from state income taxation.

History: Laws 2007, ch. 45, § 11.

                                    ANNOTATIONS

Effective dates. — Laws 2007, ch. 45, § 11, contained no effective date provision, but,
pursuant to N.M. Const., art. IV, § 23, was effective June 15, 2007, 90 days after the
adjournment of the legislature.

Applicability. — Laws 2007, ch. 45, § 15 provided that Laws 2007, ch. 45, §§ 7
through 11 apply to taxable years beginning on or after January 1, 2007.

Service in the United States public health service is not service in the armed
forces. — Where taxpayer claimed a tax exemption for wages earned in the service of
the United States public health service (USPHS) pursuant to this section, the hearing
officer did not err in concluding that taxpayer was not in the "armed forces" for the
relevant tax years and therefore did not qualify for the armed forces salaries exemption,
because commissioned officers of the USPHS are not members of the "armed forces"
as that term is defined in New Mexico state or federal statutes, and regulations defining
"armed forces" do not modify this section of law, but were enacted to implement and
enforce the New Mexico Income Tax Act. Hammack v. Taxation & Revenue Dep’t,
2017-NMCA-086, cert. denied.