This page provides a plain-English summary of key elder care and estate planning information specific to New Mexico residents. It covers New Mexico Medicaid limits, estate tax rules, advance directive information, and links to important New Mexico agencies and resources.
Information on this page is updated periodically but laws and limits change frequently. Always verify current figures with the relevant agency or a licensed attorney.
New Mexico Medicaid — 2026 Eligibility Limits for Long Term Care
New Mexico’s Medicaid program is called Centennial Care and is administered by the New Mexico Human Services Department — HSD. New Mexico expanded Medicaid under the Affordable Care Act in 2014 providing coverage to adults up to 138 percent of the federal poverty level. Centennial Care delivers benefits through managed care organizations — MCOs — that coordinate physical health behavioral health and long term care services under one integrated system.
Income limit — single applicant The income limit for a single New Mexico nursing home Medicaid applicant is $2,982 per month in 2026. New Mexico is an income cap state meaning applicants whose income exceeds this limit must establish an Income Diversion Trust — New Mexico’s term for a Qualified Income Trust or Miller Trust — to qualify.
Asset limit — single applicant A single applicant must have $2,000 or less in countable assets. Exempt assets include the primary residence with equity up to $752,000 if the applicant intends to return home, one vehicle, personal belongings and household furnishings, and irrevocable funeral trusts. Note that IRAs and 401(k)s are counted as countable assets in New Mexico.
Home and community based care — Community Benefit program New Mexico’s primary HCBS program for seniors and people with disabilities is the Community Benefit program — delivered through Centennial Care MCOs rather than through a traditional waiver structure. The Community Benefit provides home and community based services for New Mexicans who need nursing facility level of care — defined as needing assistance with at least two Activities of Daily Living — but want to remain at home or in a community setting. The asset limit is $2,000 for a single applicant and the income limit is $2,982 per month.
New Mexico offers two care delivery options within the Community Benefit. Agency-Based Community Benefit — ABCB — provides services through licensed home care agencies. Self-Directed Community Benefit — SDCB — allows participants to hire manage and direct their own personal care providers — including family members or friends — with MCO approval. The SDCB option gives participants significant control over their care and is a meaningful benefit for many New Mexico families. Approximately 30,000 New Mexicans receive Community Benefit services as of 2026.
Married couples — one spouse applying When only one spouse applies for New Mexico Medicaid the community spouse — the spouse who remains at home — may retain 50 percent of the couple’s combined countable assets up to a maximum of $162,660. If 50 percent of the couple’s assets is less than $32,532 the community spouse may retain up to $32,532. The applicant spouse retains $2,000.
Monthly Maintenance Needs Allowance The minimum Monthly Maintenance Needs Allowance for the community spouse is $2,643.75 per month in 2026. The maximum is $4,066.50 per month for community spouses with high housing costs.
Personal needs allowance New Mexico nursing home Medicaid recipients are allowed to keep $97 per month as a personal needs allowance. Community Benefit participants living at home keep all of their income. The remainder of nursing home residents’ income above the personal needs allowance is applied toward the cost of care.
Look-back period and divestment penalty New Mexico has a 60-month — five year — look-back period for nursing home Medicaid and Community Benefit applications. Asset transfers made within 60 months of applying that were for less than fair market value may result in a penalty period of ineligibility. The 2026 divestment penalty divisor in New Mexico is based on the statewide average monthly cost of nursing facility care.
Estate recovery New Mexico requires Medicaid estate recovery. After a Centennial Care recipient dies the state seeks reimbursement from the estate for long term care costs paid. Planning with an elder law attorney can help protect assets from estate recovery.
How to apply for New Mexico Centennial Care Medicaid Applications can be submitted online through the New Mexico Medicaid portal at hsd.state.nm.us, by phone at 1-800-283-4465, or in person at your local Income Support Division — ISD — office.
New Mexico Medicaid administering agency New Mexico Human Services Department — hsd.state.nm.us
New Mexico Estate Tax — 2026
No New Mexico state estate tax New Mexico does not impose a state estate tax. New Mexico repealed its state estate tax in 2005. No New Mexico estate tax applies to any estate regardless of size.
No New Mexico inheritance tax New Mexico does not impose an inheritance tax. Beneficiaries who receive assets from a New Mexico decedent owe no New Mexico inheritance tax regardless of the size of the inheritance or their relationship to the deceased.
Federal estate tax New Mexico residents may be subject to the federal estate tax. The federal estate tax exemption is $15,000,000 per person in 2026 following enactment of the One Big Beautiful Bill Act. The exemption is portable between spouses meaning a married couple can protect up to $30,000,000 from federal estate tax with proper planning. The top federal estate tax rate is 40 percent on amounts above the exemption.
No New Mexico gift tax New Mexico does not impose a state gift tax. Federal gift tax rules apply — the annual gift tax exclusion is $19,000 per recipient in 2026.
New Mexico income tax New Mexico has a progressive income tax with rates ranging from 1.7 percent to 5.9 percent. Social Security benefits are partially exempt — New Mexico exempts Social Security income for taxpayers with adjusted gross income below $100,000 for single filers or $150,000 for joint filers. Pension income and IRA and 401(k) withdrawals are taxable in New Mexico though a modest deduction may apply for certain retirement income. New Mexico uses a gross receipts tax rather than a traditional sales tax — the statewide rate is approximately 4.88 percent with local additions averaging 7.67 percent combined.
New Mexico property taxes — low effective rate New Mexico has an effective property tax rate of approximately 0.63 percent — below the national average. New Mexico also offers a senior property tax value freeze described below.
Step-up in basis Inherited assets in New Mexico receive a stepped-up tax basis to fair market value at the date of the original owner’s death. This can significantly reduce capital gains taxes when beneficiaries later sell inherited property.
New Mexico Advance Directives
New Mexico law recognizes the following advance directive documents:
New Mexico Advance Health Care Directive New Mexico uses a combined Advance Health Care Directive that includes both the appointment of a healthcare agent and treatment instructions. Must be signed and witnessed by two adults or notarized.
New Mexico POLST — Physician Orders for Life-Sustaining Treatment New Mexico uses a POLST form for seriously ill patients that documents specific medical orders regarding CPR hospitalization and artificial nutrition. Must be signed by a physician or nurse practitioner.
New Mexico Do Not Resuscitate Order A physician order directing emergency personnel not to perform CPR. New Mexico has standardized out-of-hospital DNR protocols.
New Mexico Advance Directive Registry New Mexico does not maintain a statewide advance directive registry. Copies of your advance directive should be given to your healthcare agent physician and any hospital or care facility where you receive care.
Free New Mexico advance directive forms Free New Mexico-specific advance directive forms are available at caringinfo.org and from the New Mexico Medical Society at nmms.org.
New Mexico Key Agencies and Resources
New Mexico Human Services Department — HSD Administers Centennial Care — New Mexico Medicaid — including long term care programs. Website: hsd.state.nm.us Phone: 1-800-283-4465
New Mexico Aging and Long-Term Services Department — ALTSD Coordinates programs and services for older New Mexicans including home care nutrition programs caregiver support and the New Mexico ADRC and SHIP programs for free Medicare counseling. Website: nmaging.state.nm.us Phone: 1-800-432-2080 New Mexico SHIP — free Medicare counseling: 1-800-432-2080
New Mexico Area Agencies on Aging New Mexico is served by 6 Area Agencies on Aging that coordinate local services for older adults and caregivers. Eldercare Locator: 1-800-677-1116 or eldercare.acl.gov
New Mexico Long Term Care Ombudsman Program Advocates for the rights of residents of nursing homes and assisted living facilities. Investigates complaints and helps resolve problems free of charge. Website: nmaging.state.nm.us/long-term-care-ombudsman Phone: 1-866-451-2901
State Bar of New Mexico Lawyer Referral Service Connects New Mexicans with attorneys including those who specialize in elder law and estate planning. Website: sbnm.org Phone: 1-505-797-6066
New Mexico Legal Aid Provides free civil legal services to low income New Mexicans including seniors on issues related to Medicaid benefits housing and elder law. Website: newmexicolegalaid.org Phone: 1-833-545-4357
New Mexico Veterans Resources
New Mexico Department of Veterans Services — NMDVS Provides services and benefits to New Mexico veterans and their families including free VA claims assistance and connections to New Mexico veterans resources. Website: dvs.nm.gov Phone: 1-505-827-6300
New Mexico State Veterans Home New Mexico operates a state veterans home providing long term care to eligible veterans and their spouses located in Truth or Consequences. Website: dvs.nm.gov/state-veterans-home
New Mexico Senior Property Tax Benefits
Senior Property Tax Value Freeze New Mexico residents aged 65 and older who have been New Mexico residents for at least one year and meet income requirements may apply annually with their local assessor to freeze the assessed value of their primary single-family home. Once frozen the assessed value cannot increase even if the home appreciates in value — providing meaningful long-term property tax savings. Apply through your county assessor’s office.
Head of Household Exemption New Mexico homeowners who are the head of household and occupy their primary residence qualify for a property tax exemption that reduces the taxable value of the home. This applies regardless of age.
Disabled Veteran Property Tax Exemption New Mexico veterans who are rated 100 percent permanently and totally disabled due to a service-connected disability may qualify for a full property tax exemption on their primary residence. Apply through your county assessor’s office.
Finding Elder Law and Estate Planning Attorneys in New Mexico
The following resources can help you find a qualified elder law or estate planning attorney in New Mexico:
- National Academy of Elder Law Attorneys — NAELA — naela.org — searchable directory by location
- State Bar of New Mexico Lawyer Referral Service — sbnm.org — 1-505-797-6066
- New Mexico Chapter of NAELA — New Mexico has an active NAELA chapter with members throughout the state
- New Mexico Legal Aid — newmexicolegalaid.org — free legal assistance for income-qualifying seniors — 1-833-545-4357
The information on this page is for general informational purposes only and does not constitute legal or financial advice. New Mexico Centennial Care Medicaid rules and other figures change frequently. Always verify current information with the relevant agency or a licensed attorney. Laws vary and individual circumstances differ significantly.
Last updated: May 2026