New Mexico
#45
retiree-friendly rank
- Social Security
- SS partially taxed
- Retirement income
- Retirement income taxed
- Death tax
- None
Prop 0.63% · Sales 7.68%
2026New Mexico vs Montana Retirement Taxes
New Mexico and Montana tie on this site's modeled retiree-friendliness score. Compare Social Security, pensions and IRA withdrawals, estate/inheritance taxes, and supporting property and sales rates.
By Sammy S. · Founder · AuthorUpdated for 2026
More retiree-friendly on this model
New Mexico and Montana are tied
Both states share the same modeled Social Security, retirement-income, and estate/inheritance score.
Side-by-side retirement tax scoreboard
Montana
#45
retiree-friendly rank
- Social Security
- SS partially taxed
- Retirement income
- Retirement income taxed
- Death tax
- None
Prop 0.61% · Sales 0%
Retirement tax metric comparison
Rankings emphasize income and death taxes. Property and sales rates matter for cash flow but do not drive the retiree-friendliness score.
| Metric | New Mexico | Montana |
|---|---|---|
| Retiree-friendly rank | #45 | #45 |
| Social Security | SS partially taxed | SS partially taxed |
| Retirement income | Retirement income taxed | Retirement income taxed |
| Estate / inheritance | None | None |
| Estate exemption | — | — |
| Estate top rate | — | — |
| Effective property tax | 0.63% | 0.61% |
| Combined sales tax | 7.68% | 0% |
State rules explained
Why New Mexico and Montana differ for retirees
The gap is rarely one rule. Social Security thresholds, pension exclusions, and estate taxes can each flip which state looks better for a given household.
New Mexico rules
Taxes Social Security only above high AGI thresholds; other retirement income generally taxable.
Full SS exemption below AGI $100,000 single / $150,000 joint; fully taxed above those thresholds.
Other retirement income generally taxed; SS taxed only above AGI thresholds.
- Property
- 0.63%
- Sales
- 7.68%
Montana rules
Still taxes some Social Security; other retirement income generally taxable.
Partial SS taxation with AGI deductions/exclusions; confirm Montana Form 2 instructions.
Other retirement income generally taxed; SS partially taxed.
- Property
- 0.61%
- Sales
- 0%
Income mix matters
A household living mostly on Social Security may prefer different rules than one drawing large IRA RMDs. Compare New Mexico and Montana against your actual income mix.
Death taxes are separate
Federal estate tax can still apply above about $15M. State estate or inheritance tax is an extra layer in some states.
Property & sales still count
New Mexico property 0.63% vs Montana 0.61%; sales 7.68% vs 0%.
Compare a different pair
Compare any two states
Social Security, pensions/IRA, estate taxes, and supporting property/sales rates.
Related tools
Estimate federal retirement figures
Use Social Security and RMD tools, then apply each state's rules from this comparison.
New Mexico vs Montana retirement tax FAQs
New Mexico and Montana tie on the modeled retiree-friendliness score. Also compare property tax (0.63% vs 0.61%) and combined sales tax (7.68% vs 0%).
New Mexico: ss partially taxed. Montana: ss partially taxed. Federal Social Security tax rules apply in both states.
New Mexico: retirement income taxed. Montana: retirement income taxed.
New Mexico: no estate tax. Montana: no estate tax.
Not always. Property taxes, sales taxes, and estate taxes can offset income-tax savings. Compare total household exposure, not income tax alone.
Federal income tax, Medicare IRMAA surcharges, and the federal estate tax framework do not depend on the state of residence in the same way state income tax does. State rules sit on top of federal rules.
Related retirement tax comparisons
Educational comparison only. Confirm current state return instructions and estate planning rules before relocating.