New Mexico Estate Taxes

The New Mexico estate tax is designed to absorb the federal estate tax credit for state death taxes. No additional estate tax is imposed.

New Mexico does not impose an inheritance tax on heirs, but an inheritance may be reflected in a taxpayer's New Mexico modified gross income. Then, New Mexico personal income tax laws would apply.

Returns. A New Mexico estate tax return and a copy of the federal estate tax return must be filed by the due date of the federal return (usually within nine months of death unless an extension is granted). Any New Mexico estate taxes owed must be paid within nine months of the decedent's death.

Generation-skipping transfer tax. New Mexico does not impose this type of tax.