How Much Are Estate & Inheritance Taxes in New Mexico?
New Mexico levies no estate or inheritance taxNMSA 1978 §§ 7-7-3(A), 7-7-2(D) (Estate Tax Act — pick-up tax equal to the IRC § 2011 federal credit, $0 since 1/1/2005)Verified Sep 15, 2026View source; only the federal estate tax applies above $15,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source.
No. New Mexico imposes no state estate tax and no inheritance taxNMSA 1978 §§ 7-7-3(A), 7-7-2(D) (Estate Tax Act — pick-up tax equal to the IRC § 2011 federal credit, $0 since 1/1/2005)Verified Sep 15, 2026View source. Only the federal estate tax applies, on an estate above $15,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source, an exemption the One Big Beautiful Bill Act (P.L. 119-21 §70106) set permanently from 2026 and indexes for inflation.
Not on the inheritance itself: New Mexico taxes neither the estate nor the beneficiaryNMSA 1978 §§ 7-7-3(A), 7-7-2(D) (Estate Tax Act — pick-up tax equal to the IRC § 2011 federal credit, $0 since 1/1/2005)Verified Sep 15, 2026View source, and the IRS does not treat an inheritance as income. What an heir can owe is income tax on withdrawals from an inherited retirement account, and capital gains on a later sale of inherited property, where the basis is reset to fair market value on the date of death26 USC § 1014Verified Sep 15, 2026View source and the gain faces ordinary income tax at the state's regular rates, after the first $2,500 of gain is excludedNMSA 1978 § 7-2-34 (as amended by Laws 2024, Ch. 67 / HB 252 § 8)Verified Sep 15, 2026View source.
The federal estate tax exemption is $15,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source per person, with a top rate of 40%26 USC 2001(c)Verified Sep 15, 2026View source. A married couple can shield26 USC 2010(c)(5)Verified Sep 15, 2026View source $30,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source by electing portability of the first spouse's unused exemption on a timely estate tax return. The One Big Beautiful Bill Act (P.L. 119-21 §70106) set the exemption permanently from 2026, indexed for inflation.
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Inheritance
Inheriting assets brings responsibility. How to manage, protect, and plan for inherited wealth — including tax implications and trust options.
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Death of a Parent
A step-by-step guide to what happens after a parent dies: the documents to find, the certificates to order, and whether probate is even required.
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Loss of a Spouse
What a surviving spouse needs to do: death certificates, survivor benefits, whether probate is even required, and the tax election that expires.
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Named as Executor
What an executor actually does: getting appointed, notifying creditors, paying debts and taxes, and where personal liability starts.
Learn moreForms for Planning and Settling an Estate in New Mexico
Free New Mexico forms for planning an estate or settling one: a will, trust, powers of attorney, TOD deed, and the probate forms an executor files.
IRS Form 56
Notify the IRS that you are the fiduciary of an estate, a trust or a person, or end a notice filed before, on the official form.
Digital Assets Recovery Letter
Prepare a letter requesting a deceased person's online accounts, points, and balances from the program that holds them.
Notice to Creditors
In New Mexico, creditors have 4 monthsNMSA § 45-3-801 (four months from first publication; sixty days from mailed notice, whichever is later); § 45-3-803 (claims barred at the earlier of one year after death or the § 45-3-801 periods)Verified Sep 8, 2026View source from first publication to present claims.
Renunciation of Executor
In New Mexico, a person named as personal representative may renounce the right to serveNMSA 1978, § 45-3-203(C)Verified Sep 23, 2026View source before anyone is appointed.
Small Estate Affidavit
In New Mexico, the Small Estate Affidavit§ 45-3-1201Verified Sep 8, 2026View source covers estates valued at $50,000§ 45-3-1201Verified Sep 8, 2026View source or less, 30 days§ 45-3-1201Verified Sep 8, 2026View source after death, presented directly to the bank or other holder, not filed with a court.
Estate Inventory
In New Mexico, the personal representative files the estate inventory within 90 daysNMSA § 45-3-706Verified Sep 15, 2026View source of appointment.
Estate Closing
In New Mexico, the personal representative is discharged automatically once the statutory period runsNMSA § 45-3-1003(B); § 45-3-1005Verified Sep 15, 2026View source, and a final accounting is required.
Tools for Planning and Settling an Estate in New Mexico
Free calculators and checklists for planning or settling an estate in New Mexico: will and trust costs, probate, executor pay, and inheritance taxes.
What Taxes Apply to My Inheritance?
New Mexico imposes no inheritance or estate taxNMSA 1978 §§ 7-7-3(A), 7-7-2(D) (Estate Tax Act — pick-up tax equal to the IRC § 2011 federal credit, $0 since 1/1/2005)Verified Sep 15, 2026View source; probate assets arrive when the estate closes, 4 months to 6 months for a simple estate.
How Does Step-Up in Basis Work?
Inherited assets in New Mexico take a basis reset to fair market value on the date of death26 USC § 1014Verified Sep 15, 2026View source, and the gain on a later sale faces ordinary income tax at the state's regular rates, after the first $2,500 of gain is excludedNMSA 1978 § 7-2-34 (as amended by Laws 2024, Ch. 67 / HB 252 § 8)Verified Sep 15, 2026View source.
What Are the Estate Laws in My State?
Probate on a $500,000 estate in New Mexico costs an estimated $24,985NMSA § 45-3-715(A)(21) (PR may employ attorneys); § 45-3-721 (court review of the compensation); § 45-3-720 (estate litigation expenses, incl. attorneys fees); no statutory percentageVerified Sep 8, 2026View source and takes 4 months to 6 months for a simple estate, with attorney fees of typically 1.8%Modeled estimate under NMSA § 45-3-715(A)(21) (PR may employ attorneys); § 45-3-721 (court review of the compensation); § 45-3-720 (estate litigation expenses, incl. attorneys fees); no statutory percentage: the hours the statutory fee schedules imply, at the state's surveyed hourly rateVerified Sep 8, 2026View source to 2.9%Modeled estimate under NMSA § 45-3-715(A)(21) (PR may employ attorneys); § 45-3-721 (court review of the compensation); § 45-3-720 (estate litigation expenses, incl. attorneys fees); no statutory percentage: the hours the statutory fee schedules imply, at the state's surveyed hourly rateVerified Sep 8, 2026View source of the estate. Estates under $50,000§ 45-3-1201Verified Sep 8, 2026View source can use a small-estate procedure instead.
When Do I Have to Withdraw an Inherited IRA?
See which federal withdrawal rules apply to an inherited IRA, Roth IRA, or employer plan, the deadline year, and the missed-withdrawal tax.
How Much Does Probate Cost?
Probate on a $500,000 estate in New Mexico costs an estimated $24,985NMSA § 45-3-715(A)(21) (PR may employ attorneys); § 45-3-721 (court review of the compensation); § 45-3-720 (estate litigation expenses, incl. attorneys fees); no statutory percentageVerified Sep 8, 2026View source. Attorney fees run 1.8%Modeled estimate under NMSA § 45-3-715(A)(21) (PR may employ attorneys); § 45-3-721 (court review of the compensation); § 45-3-720 (estate litigation expenses, incl. attorneys fees); no statutory percentage: the hours the statutory fee schedules imply, at the state's surveyed hourly rateVerified Sep 8, 2026View source to 2.9%Modeled estimate under NMSA § 45-3-715(A)(21) (PR may employ attorneys); § 45-3-721 (court review of the compensation); § 45-3-720 (estate litigation expenses, incl. attorneys fees); no statutory percentage: the hours the statutory fee schedules imply, at the state's surveyed hourly rateVerified Sep 8, 2026View source of the estate under a reasonable-compensation standard.
Who Inherits Without a Will?
New Mexico is a community property state, so the surviving spouse already owns half of what the couple acquired during the marriage. Without a will in New Mexico, descendants divide what passes to them per capita at each generationNMSA § 45-2-106Verified Oct 21, 2026View source, and an heir must survive the decedent by 120 hoursNMSA § 45-2-104(A)Verified Oct 21, 2026View source to inherit.
How Many Death Certificates Do I Need?
In New Mexico, certified death certificates come from the New Mexico Department of Health - Bureau of Vital RecordsNew Mexico Department of Health - Bureau of Vital RecordsVerified Oct 15, 2026View source; the first copy costs $5New Mexico Department of Health - Bureau of Vital RecordsVerified Oct 15, 2026View source.
Do I Need Probate?
In New Mexico, estates valued at $50,000§ 45-3-1201Verified Sep 8, 2026View source or less skip probate with the Small Estate Affidavit§ 45-3-1201Verified Sep 8, 2026View source, 30 days§ 45-3-1201Verified Sep 8, 2026View source after death.
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New Mexico Estate Planning Resources
In-depth guides covering New Mexico probate laws, trust requirements, and estate planning strategies.