People over the age of 65 and disabled retirees in New Mexico can now “freeze” their assessed property values if they make less than $32,000 a year. Social Security retirement benefits are taxable in New Mexico, but they also allow for a partial deduction. The median annual property tax paid by homeowners in New Mexico is $1,403, about $1,200 less than the national median. For seniors age 65 or older, there is an $8,000 deduction on retirement income if the household adjusted gross income is below certain limits. The property tax rate in Albuquerque is 1.05%, second-highest in the state. The way homestead exemptions typically work, the assessed value of the property freezes, once you have successfully applied and been accepted. So if your home’s value was frozen at $200,000, five years from now, if your home is now worth $220,000, you’ll be paying taxes on a $200,000 home and not a $220,000 home.
Who is Exempt from Property Taxes in New Mexico?
New Mexico offers property tax exemptions for seniors over 65 and disabled people with incomes under $32,000 per year. Retirement income for seniors over 65 has an $8,000 deduction if income is below certain limits. At 1.05%, Albuquerque has the second-highest property tax rate in New Mexico.
With a homestead exemption, a property’s assessed value freezes once approved. For example, if a $200,000 home gets a frozen assessed value, it would still be taxed as a $200,000 home even if the market value rose to $220,000 five years later.