NM risk area
Tax exposure in New Mexico
State estate or inheritance tax rules and how they interact with federal thresholds.
New Mexico's estate tax is phased out due to federal law changes, and the state does not impose an inheritance tax.
Does the state impose an estate or inheritance tax?Who is exempt or receives preferential treatment?How does federal tax interact with state rules?
At a glance
Key takeaways
- New Mexico's estate tax is phased out due to federal tax law changes as of January 1, 2005.
- If a federal Form 706 is required, New Mexico requires a state estate tax return to obtain a certificate of no tax due.
- New Mexico does not impose an inheritance tax.
- With no state death tax, tax exposure is primarily federal when the estate exceeds the federal exemption.
Questions to consider
Questions this risk area helps you evaluate in New Mexico
- Does the state impose an estate or inheritance tax?
- Who is exempt or receives preferential treatment?
- How does federal tax interact with state rules?
State overview
New Mexico's estate tax is phased out due to federal law changes, and the state does not impose an inheritance tax.
- New Mexico's estate tax is phased out due to federal tax law changes as of January 1, 2005.
- If a federal Form 706 is required, New Mexico requires a state estate tax return to obtain a certificate of no tax due.
- New Mexico does not impose an inheritance tax.
- With no state death tax, tax exposure is primarily federal when the estate exceeds the federal exemption.
Sources
- https://www.tax.newmexico.gov/individuals/personal-income-tax-information-overview/estate-trust-and-fiduciary-income-tax/
- https://taxfoundation.org/data/all/state/estate-inheritance-taxes/
Risk sources
- IRS inflation adjustments for tax year 2026
Use for the current federal estate tax basic exclusion amount.
- IRS Instructions for Form 706 (United States Estate Tax Return)
Defines filing requirements and federal estate tax framework.
- Tax Foundation - State estate and inheritance taxes
Current list of states with estate or inheritance taxes.
National sources provide baseline context; state statutes and court rules control in New Mexico.