Governor Michelle Lujan Grisham marked the 90th anniversary of Social Security, highlighting its impact on lifting millions out of poverty and providing security for retirees and disabled workers. She emphasized that Social Security is earned income, not an entitlement, and criticized Congress for not addressing financial pressures affecting the program.
“While Congress refuses to deal with inflation and the real-life financial pressures people face, we’re making sure those eligible for Social Security keep every single dollar they earned,” said Gov. Lujan Grisham. “Politicians in Washington want to call Social Security an ‘entitlement,’ but this is your money that you paid into your entire working life.”
New Mexico has removed state income taxes on Social Security benefits for most recipients. Since tax year 2022, middle- and low-income earners no longer pay state taxes on these benefits. Single filers earning up to $100,000 annually and joint filers earning up to $150,000 are fully exempt from state taxation on their Social Security income. As a result, about 86% of seniors in New Mexico retain all their Social Security payments without state deductions.
“The most important thing seniors need to know is that we already removed state taxes on your Social Security income,” said Lujan Grisham. “We eliminated those taxes because that money belongs to you – it’s income you earned, and you shouldn’t be taxed twice on it.”
The elimination of these taxes has provided significant relief to New Mexican families. According to Think New Mexico, each senior household saves about $710 per year due to this change. In total, this policy returned $84 million in 2022 and is projected to reach nearly $99.5 million by 2025.
Governor Lujan Grisham also noted that while Social Security was designed as a foundation for post-retirement income, additional support systems are necessary. The state has invested in programs such as New MexiCare for long-term care services and the New Mexico State Veterans Home for veterans’ housing and care. The resolution of the Jackson lawsuit ended a decades-long waitlist for developmental disabilities waivers and improved community-based services for intellectually and developmentally disabled residents.
“We need Congress to keep thinking—and state policymakers too—about ways to treat retirees, older adults, and disabled people with much more respect and dignity,” said Lujan Grisham. “New Mexico recognizes that the state can and should do more to lift up senior citizens, veterans, and disabled persons. We do a lot of other work beyond Social Security tax relief.”
She added: “Congress should take a lesson from New Mexico on how we take care of people,” Lujan Grisham added. “We can do more, and we will.”
Social Security faces funding issues at the federal level; according to its trustees’ 2024 report, trust funds could be depleted by 2033 if Congress does not act soon—potentially leading to automatic benefit cuts of around 20%.
“For 90 years, Social Security has made sure that when you can’t work anymore, part of what you earned during your lifetime is still there for you,” said Lujan Grisham. “We’re talking about 470,000 New Mexicans who paid into this system their whole working lives. This is income they earned.”
As of December 2023 in New Mexico:
– There were approximately 468,030 total beneficiaries.
– Of these beneficiaries: about 345,706 were retired workers; roughly 54,280 were disabled workers.
– An additional estimated 55,319 residents received Supplemental Security Income (SSI).
– Monthly benefits across the state totaled $778.2 million.
