Property Tax Rebate for Elderly with Local Option (Circuit Breaker)


New Mexico



Variations in Receipt of Benefit

Benefit Varies with Income

Minimum Tax Amount Must be Paid

Benefit Type

Circuit Breaker


The benefit is a refundable credit to the income tax bill. The benefit is the amount of property tax paid each taxable year that exceeds the maximum property tax liability. For renters, property taxes are deemed to be 6% of rent. The maximum property tax liability ranges from $20, for income below $1,000, to $180, for income between $15,000 to $16,000. The tax rebate shall not exceed $250 per return. Counties may adopt an ordinance to provide for more generous rebates. Claimants with income up to $25,000 are eligible and the maximum tax liability, for those with income between $24,000 and $25,000, is $300. Any resident qualified for this benefit who rents a principal place of residence from another person may calculate the amount of property tax due by multiplying the gross rent for the taxable year by 6%.

How is Benefit Disbursed

Credit to the income tax bill

Eligible Property Type


Characteristics of Eligible Property

Only principal residences are eligible. Principal residence means the resident's dwelling, whether owned or rented, and up to 5 acres of surrounding land, as is reasonably necessary for use of the dwelling as a home. It may consist of a part of a multi–dwelling or multi–purpose building and part of the land upon which it is built.

Eligibility Criteria



Income Ceiling

Principal Residence


Other Criteria

Description of Eligibility Criteria

The claimant must be at least 65 years old and file a New Mexico income tax return. The claimant's modified gross income must be less than $16,000 if they reside in a county without a local ordinance. For counties with local ordinances, the income ceiling is $24,000. Renters may qualify for this benefit if they rent a principal place of residence from another person and meet all other qualifications. No claim for the tax rebate shall be allowed to a resident who was an inmate of a public institution for more than 6 months during the taxable year or who was not physically present in New Mexico for at least 6 months during the taxable year for which the tax rebate could be claimed.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

Local option regarding program features

State Funding for Local Tax Loss

State and local government share the local tax loss

Description of State Funding for Tax Loss

The benefit is distributed by the state through the income tax. However, counties must reimburse the state for the cost of the additional benefit if they adopt a resolution to provide this benefit. The department shall determine the additional amounts paid to taxpayers of the county for each taxable year and shall bill the county for the amount and in the manner determined by the department. If the county fails to pay any bill within 30 days, the department may deduct the amount due from any amount to be transferred or distributed to the county by the state, other than debt interceptions.

Record ID



Los Alamos and Santa Fe counties have adopted a maximum income eligibility level of $24,000.


N.M. Stat. § 7-2-18 (in effect for 2022)
New Mexico Taxation and Revenue Department, New Mexico Rebate And Credit Schedule, PIT-RC (2022)
[ Accessed 10/13/2023]
View Archived Source

New Mexico Taxation and Revenue Department, 2022 PIT-RC New Mexico Rebate and Credit Instructions and Schedule
[ Accessed 09/06/2023]
View Archived Source

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