New Mexico's Low Income Rebate: Cash Back Even If You Owe No Tax
New Mexico pays a cash rebate to low-income residents through the state income tax return, even if they owe no tax. It's called the Low Income Comprehensive Tax Rebate, and households with up to $36,000 in "modified gross income" can qualify. Seniors may also get up to $250 back on rent or property tax.
AT A GLANCE
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Why people miss this rebate
The New Mexico Taxation and Revenue Department (TRD) pays the Low Income Comprehensive Tax Rebate (LICTR) only to people who file. Many low-income residents, especially retirees living on Social Security, don't have to file an income tax return, so they never claim it.
The PIT-1 instructions list "you want to claim any New Mexico rebates or credits" as one reason a resident must file. In other words, filing is how you get paid. The rebate is refundable: TRD uses it to pay any tax you owe and refunds you the rest.
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Who qualifies
According to TRD and the 2025 PIT-RC instructions, all of these must be true:
Your modified gross income (line 13 of the PIT-RC) is $36,000 or less.
You were a resident of New Mexico during 2025.
You were physically present in New Mexico for at least six months of 2025.
You can't be claimed as a dependent by another taxpayer, whether or not anyone actually claims you.
You were not an inmate of a public institution for more than six months of 2025.
For married couples, if only one spouse meets these rules, only that spouse counts toward the rebate. Dependents who aren't New Mexico residents don't count as household members. A resident child who's away at school still counts.
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Modified gross income: not your AGI
This is where most people get tripped up. Modified gross income (MGI) is New Mexico's own measure. It's all income from all sources for you, your spouse and your dependents, taxable or not, and you can't reduce it by deductions or offset it with losses. The PIT-RC says the total must equal or exceed your federal adjusted gross income.
What counts
PIT-RC line | Include |
|---|---|
4 | Wages, salaries and tips, even if exempt from tax |
5 | Social Security, pensions, annuities, Railroad Retirement (the full amount, before Medicare or other deductions) |
6 | Unemployment and workers' compensation (not medical benefits) |
7 | Public assistance: TANF, general assistance and SSI |
8 | Business, farm or rental profit (enter a loss as zero) |
9 | Capital gains, not reduced by losses |
10 | Gifts of cash or marketable items, at a reasonable value |
11 | Everything else: interest, dividends, gambling winnings, settlements, scholarships, VA benefits, trust income, inheritances, alimony and child support |
What you leave out
The instructions exclude:
loans you must repay
SNAP benefits and WIC vouchers
medical payments by Medicare, Medicaid, insurance, the VA or workers' comp
rebates or the child day care credit received during the year
rent subsidies such as Section 8, and weatherization, energy and housing rehabilitation help
foster grandparent stipends
free room and board that isn't pay
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Counting your exemptions
The second number you need is your exemption total from PIT-RC line 3. Start with the exemptions on PIT-1 line 5 (you, your spouse and your dependents). Subtract anyone who doesn't qualify. Then add the extras:
Blind: add 1 if you or your spouse is blind for federal tax purposes, or 2 if both are.
Age 65 or older: add 2 for you, and 2 more for your spouse if you file jointly and they're also 65 or older.
So a single 70-year-old has three exemptions, and a married couple who are both over 65 has six.
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How much you get
Find your MGI in the left column and read across to your exemption count. Married couples filing separately divide the amount by two.
MGI over | But not over | 1 | 2 | 3 | 4 | 5 | 6+ |
|---|---|---|---|---|---|---|---|
$0 | $1,000 | $224 | $298 | $373 | $448 | $522 | $597 |
$1,000 | $2,500 | $252 | $362 | $465 | $580 | $655 | $775–$810 |
$2,500 | $7,500 | $252 | $362 | $465 | $580 | $655 | $839 |
$7,500 | $8,000 | $235 | $356 | $448 | $568 | $660 | $839 |
$8,000 | $9,000 | $212 | $327 | $431 | $551 | $660 | $804 |
$9,000 | $10,000 | $195 | $287 | $390 | $488 | $586 | $764 |
$10,000 | $11,500 | $166 | $241 | $316 | $413 | $511 | $689 |
$11,500 | $13,000 | $149 | $212 | $270 | $339 | $419 | $551 |
$13,000 | $14,500 | $132 | $195 | $252 | $316 | $362 | $448 |
$14,500 | $16,500 | $120 | $178 | $212 | $270 | $327 | $385 |
$16,500 | $18,000 | $114 | $149 | $189 | $241 | $287 | $344 |
$18,000 | $19,500 | $103 | $132 | $166 | $206 | $252 | $298 |
$19,500 | $23,000 | $91 | $120 | $160 | $189 | $212 | $264 |
$23,000 | $24,500 | $86 | $114 | $137 | $166 | $195 | $224 |
$24,500 | $26,000 | $74 | $103 | $132 | $160 | $178 | $206 |
$26,000 | $27,500 | $63 | $91 | $120 | $149 | $160 | $195 |
$27,500 | $29,500 | $57 | $86 | $114 | $132 | $149 | $178 |
$29,500 | $31,000 | $45 | $63 | $91 | $114 | $132 | $149 |
$31,000 | $32,500 | $40 | $57 | $74 | $91 | $114 | $120 |
$32,500 | $34,000 | $28 | $45 | $57 | $74 | $91 | $103 |
$34,000 | $36,000 | $17 | $40 | $45 | $63 | $74 | $86 |
Source: TRD's 2025 Table 1. We merged rows where the official table repeats the same amounts. The $1,000–$2,500 row combines two official rows that differ only in the 6+ column ($775 up to $1,500 and $810 above it).
"Modified gross income" is a calculation unique to New Mexico. It means — for the entire household — all income and all compensation from other sources regardless of whether the income is taxable by the U.S. Government or the state of New Mexico.
Examples
These are our own lookups in the table above.
Household | MGI | Exemptions | Rebate |
|---|---|---|---|
Single, age 70, living on Social Security | $14,000 | 3 (1 + 2 for age) | $252 |
Married, both over 65, filing jointly | $22,000 | 6 | $264 |
Single parent under 65 with two children | $18,500 | 3 | $166 |
Single adult under 65 | $9,500 | 1 | $195 |
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Two more rebates on the same form
Property tax rebate for people 65 or older (Section 3)
If you were 65 or older on December 31, 2025, and your MGI was $16,000 or less, you may also get money back for rent or property tax on your main home. The rebate maxes out at $250, or $125 for a married person filing separately.
For renters, the form counts 6% of the total rent paid, including any part a government agency paid to your landlord. You then subtract a "maximum property tax liability" from TRD's Table 2 based on your income. That amount is $20 at the lowest incomes and rises to $180 at $15,001–$16,000.
Example (our math): A 70-year-old renter with $14,000 MGI paid $9,000 in rent. Six percent is $540. The Table 2 amount for $13,001–$14,000 is $135, which leaves $405. That's over the cap, so the rebate is $250, on top of the $252 LICTR.
No rebate is available for property that isn't subject to property tax.
Extra property tax rebate in four counties (Section 4)
Homeowners in Bernalillo, Santa Fe, Doña Ana and Los Alamos counties with MGI of $24,000 or less can claim a percentage of the property tax billed on the home they own and live in. The percentage runs from 75% at the lowest incomes down to 35% at $22,001–$24,000. The rebate is capped at $350 ($175 if married filing separately). There's no age limit.
TRD's own example: a Los Alamos County resident with $19,000 MGI was billed $800 in property tax. At 45%, that's $360, so she gets the $350 maximum. Renters can't claim this one.
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How to file
Gather records. You'll need SSA-1099s, 1099-Rs, W-2s, and records of any public assistance, SSI or other income. Seniors claiming Section 3 also need property tax bills or rent receipts.
Fill out Schedule PIT-RC. The instructions say you must answer the Section 1 questions and complete lines 1–3 (exemptions) and lines 4–12 (income).
Carry the total to the PIT-1. PIT-RC line 26 goes on PIT-1 line 24.
File. You can file for free through TAP at tap.state.nm.us. TRD says e-filed returns are generally processed in 8 to 12 weeks, and paper returns in about 12 weeks.
Free preparation help may be available from Tax Help New Mexico (uwncnm.org/tax-help-new-mexico), AARP, and some senior centers, according to the PIT-1 instructions.
Deadlines
The 2025 PIT-1 was due April 15, 2026. The 2025 instructions we reviewed don't say how late you can still claim a missed rebate. If you didn't file for 2025, call TRD at (866) 285-2996 and ask before you assume it's too late. The 2026 forms will come out for the 2027 filing season. TRD's site notes that state law has adjusted the rebate amounts for inflation since tax year 2023, so expect the table to change.
WHAT TO DO THIS WEEK
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More help in New Mexico
Official sources
Last checked: October 30, 2026. Income limits, rebate tables, exemption rules, income definitions, county rebate figures, processing times and phone numbers come from the New Mexico Taxation and Revenue Department's website and the 2025 PIT-RC and PIT-1 instructions.
This is general information, not tax advice. The New Mexico Taxation and Revenue Department decides who qualifies and how much each rebate is.
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