New Mexico is renowned for its diverse landscapes and thriving culture. However, you might be wondering if you have to pay property taxes if you’re an elderly person residing in New Mexico. Yes, seniors in New Mexico are required to pay property taxes.
In New Mexico, property taxes are calculated based on the asset’s worth. The county assessor’s office establishes the value, which is updated every two years. The amount of taxes owing is then calculated by multiplying the property’s value by the tax rate.
In New Mexico, seniors can be qualified for a property tax credit. The rebate is determined on the property’s value and income. Seniors must be at least 65 years old, have resided in the home for at least two years, and earn no more than $36,000 annually to be eligible. Based on both income and property value, the refund amount fluctuates.
Retirement income is not exempt from taxation in New Mexico. Florida, Nevada, and Wyoming are the only three states that do not impose taxes on retirement income. Retirement income, such as Social Security, pensions, and 401(k) payments, are not taxed in these states since there is no state income tax.
Seniors in New Mexico may be charged additional taxes, such as income tax and sales tax, in addition to property taxes. Local sales tax rates can range from 0.25% to 8.9375%, while the state’s rate is 5.125%. State income taxes might be paid at a rate between 1.7% and 4.9%.
Conclusion: While New Mexico is not one of the three states that do not tax retirement income, seniors in New Mexico may still profit from other tax reductions and exemptions. Seniors in New Mexico do have to pay property taxes, but they may be qualified for a property tax refund. To fully grasp their tax liabilities and to make use of any potential tax benefits, seniors should speak with a tax expert.