Updated October 5, 2026. Quick answer: No. New Mexico has no estate tax for a person who dies in 2026. The Taxation and Revenue Department says the “Estate Tax is phased out due to federal tax law changes” as of January 1, 2005. The federal exclusion is $15,000,000 for 2026.
New Mexico estate tax at a glance
| Item | What the documents say |
|---|---|
| State estate tax | None |
| Why | New Mexico’s estate tax equaled the federal credit; the Department says the state’s Estate Tax is phased out due to federal tax law changes as of January 1, 2005 |
| State estate tax return | If federal Form 706 must be filed, the Department says to file a New Mexico Estate Tax Return too; it issues a certificate of no tax due |
| State inheritance tax | None: the Department says New Mexico does not impose an inheritance tax |
| Federal estate tax basic exclusion amount, 2026 | $15,000,000 |
| Source | NM Taxation and Revenue Department; IRS Revenue Procedure 2025-32 |
Why New Mexico has no estate tax
The Department’s Estate Tax page explains the design under the Estate Tax Act, Section 7-7-1 et seq. NMSA 1978: “estate tax equals the federal credit on the transfer of the” net estate for residents. The Department’s fiduciary page says “New Mexico’s Estate Tax is phased out due to federal tax law changes as of January 1, 2005”.
Does New Mexico have an inheritance tax?
The Department’s fiduciary page notes: “New Mexico does not impose an inheritance tax”.
CMG’s inheritance tax by state page covers the beneficiary side.
What applies to a New Mexico estate instead
Federal estate tax is separate. Revenue Procedure 2025-32 says the One Big Beautiful Bill Act, section 70106, increased the “basic exclusion amount to $15,000,000 for calendar year 2026”.
An estate of $3,000,000 in New Mexico owes $0 of state estate tax, and $3,000,000 is below the federal $15,000,000.
Probate: New Mexico probate cost. Retirement accounts: how New Mexico taxes 401(k) and IRA withdrawals.
What the documents do not say
- The Department still describes a filing: it says that if you must file federal Form 706, you should also file a New Mexico Estate Tax Return, and it then issues a certificate of no tax due. The page does not put a dollar amount on any tax.
Common mistakes
- Skipping the certificate of no tax due when federal Form 706 is required; the Department says to file the New Mexico return with it.
- Assuming the state answer settles the federal one, or the answer for property held in another state.
Related: estate tax by state, inheritance tax by state, and probate cost by state.
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Answer againSources
- Estate, Trust, and Fiduciary Income Tax: https://www.tax.newmexico.gov/individuals/personal-income-tax-information-overview/estate-trust-and-fiduciary-income-tax/
- Estate Tax: https://www.tax.newmexico.gov/2020/10/23/estate-tax/
- Revenue Procedure 2025-32 (Internal Revenue Service): https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
Sources: the primary documents linked above, read on October 5, 2026. General information, not tax advice. Your own facts decide the outcome, and an estate attorney, a tax preparer or the state agency itself is the right place to confirm anything consequential.