Estate Tax 

Residents and nonresidents of New Mexico are subject to the Estate Tax Act, Section 7-7-1 et seq. NMSA 1978. If there is a federal requirement to file a federal estate tax return, the estate’s personal representative must file a return with the Taxation and Revenue Department (TRD). The state filing must be completed on or before the deadline for the federal estate tax return, a copy of which must accompany the state filing.  

The due date of the tax is the same as the federal deadline to file and pay, including any extension of time for filing the federal estate tax return.

Estate tax dollars, after refunds, go into the General Fund. Works of art may be accepted in lieu of payment of estate tax under certain circumstances.

The estate tax equals the federal credit on the transfer of the net estate for residents. For nonresidents the tax equals the federal credit imposed on the net estate located in New Mexico.

Taxpayers should make the check or money order payable to Taxation and Revenue Department. Mail the form with payment to:  

New Mexico Taxation and Revenue Department
P.O. Box 25123
Santa Fe, NM 87504-5123  

For assistance, call (505) 827-0763.

Or for tax return help, email us at OtherTaxes@state.nm.us.  

Links

RPD-41058, Estate Tax Return Form and Instructions

 

Frequently Asked Questions

Q. Does New Mexico have an estate tax?

Answer:
Yes. The estate tax applies to the New Mexico portion of the net estate as a proportionate share of the federal credit for state estate taxes. The net estate located in New Mexico of a nonresident is also taxable as a fraction of the federal credit.

Q. Does New Mexico have an inheritance tax on heirs?

Answer:
No, but an inheritance may be reflected in a taxpayer's modified gross income as defined by New Mexico. If so, New Mexico personal income tax laws would then apply.
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E-File for accurate returns and faster refunds.
Federal automatic extensions also extend New Mexico income tax returns.
E-File and E-Pay and extend your income tax due date.
Get your refund faster when you E-File.
Low-income residents may qualify for income tax credits.
You may qualify for the Working Family Income Tax Credit.
You may qualify for the Earned Income Tax credits.
Estimated tax payments may be required if you withhold too little.
Manage your account online using Taxpayer Access Point.
Business closed? Update your CRS account online.
Gross receipts tax rates are subject to change in January and July.
NTTCs may be required to support tax-deductible sales.
Changing your address? Update your tax records online.
View payments and returns using Taxpayer Access Point.
Keep up with recent tax changes. See the instructions.
Keep accurate tax records for up to 10 years.
Double-check your figures. Errors will delay your return.
Get your money faster using refund express direct deposit.
Pay online by electronic check or credit card.
Avoid delays, submit a complete return.
Tax Fraud in New Mexico, call 1-800-457-6789.
Check the status of your refund, visit Taxpayer Access Point.
Pay your property taxes to your county treasurer.
Delinquent property taxes? See your local county treasurer’s office.
Find out who is managing your county government.
Property tax auctions are often held at the county treasurer’s office.
April property tax valuation determines your November tax bill.
Property taxes pay for schools, police, and hospitals.
Property was sold at auction? We may have your money.
Stop penalty and interest by paying your principal tax quickly.
Make sure you use correct tax ID numbers.
Refund express? Double-check your bank account and routing numbers.
Include your phone number and e-mail address when filing.
Secure your tax records from identity theft.
Generally, both spouses are responsible for liability on a joint return.
Sign and date your return.
Avoid preparers who base their fee on a percentage of the refund.
Tax fraud is the responsibility of the taxpayer
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