This Veterans Day week, we want to make sure every veteran and military family in the Albuquerque area knows about one of the biggest changes to New Mexico homeownership costs in years. Before 2026, only veterans rated 100% disabled got a full property tax exemption. Now the benefit reaches thousands more households, and state officials say more than 7,000 additional veterans had already claimed it by midsummer.

What changed in 2026

The standard veteran exemption grew. Any New Mexico resident veteran (or un-remarried surviving spouse) can take $10,000 off the taxable value of their property, up from $4,000. Starting in 2027 the amount is set to adjust for inflation.

The disabled veteran exemption became proportional. New Mexico voters approved a constitutional amendment in November 2024, and lawmakers followed with bills in 2025 and 2026. A veteran with a service-connected disability rating now receives an exemption equal to that percentage of the home's taxable value, after the standard exemption comes off. A 70% rating means 70% of the remaining taxable value is exempt. A 100% rating still means no property tax on the primary residence.

It applies to where you live. The proportional exemption covers the veteran's primary residence only, not a second home or a rental.

How to claim it

  1. Request a certificate of eligibility from the New Mexico Department of Veterans' Services.
  2. File that certificate with the Bernalillo County Assessor (or the assessor in Sandoval, Valencia or Torrance County if that's where you buy).
  3. If you buy a new home, move the exemption to the new address. Don't assume it follows you.

Why this pairs so well with a VA loan

A VA-backed mortgage already removes some of the biggest hurdles to buying:

  • No down payment for eligible borrowers with full entitlement, and no VA loan limit in that case.
  • No monthly mortgage insurance, unlike most low-down-payment loans.
  • No VA funding fee for veterans who receive VA disability compensation.

Stack those advantages with a reduced property tax bill and the monthly payment on a qualifying home can drop meaningfully. When we run numbers with our veteran buyers, we include the exemption from day one so the payment estimate reflects reality. One caution: the exemption doesn't apply until it's on file and approved, so your first escrow estimate may need adjusting.

Neighborhoods military families ask us about

Kirtland Air Force Base sits on Albuquerque's southeast side and also houses Sandia National Laboratories, so commute times to the Eubank, Wyoming and Gibson gates drive a lot of decisions.

  • Four Hills: tucked against the foothills just east of the base, with larger lots and mountain views.
  • Southeast Heights and the Nob Hill/UNM area: older, central homes with quick access to the Gibson and Wyoming gates and to the Raymond G. Murphy VA Medical Center.
  • Mesa del Sol: a newer master-planned community south of the airport with newer construction.
  • East Mountains (Tijeras, Cedar Crest): a short I-40 drive for those who want acreage and pine trees. Read our East Mountains post first, since septic and well rules apply.

PCS timelines rarely line up with the market. We regularly help families buy from out of state with video walk-throughs, remote document signing and an inspector we trust standing in for them.

Frequently asked questions

What is the veteran property tax exemption in New Mexico for 2026? The standard exemption is $10,000 off taxable value. Disabled veterans also receive an exemption equal to their VA disability percentage on their primary residence.

Do partially disabled veterans get a property tax break in New Mexico? Yes. Starting in 2026, veterans rated 10% to 90% receive a proportional exemption. Before 2026, only 100% disabled veterans qualified.

Where do I apply? Get a certificate of eligibility from the NM Department of Veterans' Services, then file it with your county assessor.

Can I use a VA loan to buy near Kirtland with no money down? Eligible borrowers with full entitlement can buy with no down payment. Closing costs still apply, though sellers can contribute toward them.

Thank you for your service

The Sandi Pressley Team has helped many military and veteran families buy and sell across the metro. If you're relocating to Kirtland or ready to use your VA benefit, call us at 505-263-2173 and we'll map out the full cost of ownership, exemptions included.

General information, not tax or legal advice. Confirm eligibility with NMDVS and your county assessor.

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