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Home›Taxes›Thinking of Moving? 9 States That Tax Social Security Benefits

Thinking of Moving? 9 States That Tax Social Security Benefits

By Our Editorial Team  |  Published February 25, 2026

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5. New Mexico

New Mexico previously taxed Social Security benefits more aggressively, but recent changes have expanded exemptions.

Many retirees now qualify for significant deductions, especially those with moderate incomes. However, high-income households may still owe tax.

New Mexico remains relatively affordable compared to coastal states, which may offset potential tax exposure.

Understanding the updated exemption thresholds is critical before making assumptions.

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