Exemptions

NMSA 1978 ch. 42, art. 10

in effect

NMSA 1978, § 42-10-1 Exemptions

42-10-1. Exemptions A. The following shall be exempt from receivers or trustees in bankruptcy or other insolvency proceedings, fines, attachment, execution, garnishment, levy or foreclosure by a judgment creditor: (1) a person's aggregate interest in household goods and furnishings, not exceeding a value of seventy-five thousand dollars ($75,000); (2) a person's aggregate interest in motor vehicles, not exceeding ten thousand dollars ($10,000) in value; (3) a person's interest in a wedding band and an engagement ring and a person's interest in additional jewelry held primarily for the use of the person, the person's spouse or any dependent of the person, not exceeding five thousand dollars ($5,000) in the aggregate for this additional jewelry; (4) works of art or artwork of the person or any relative of the person, not exceeding a value of two thousand five hundred dollars ($2,500) in the aggregate; (5) tools, equipment, implements, professional books, instruments, inventory, supplies and materials reasonably necessary for use in the person's trade, profession, business or occupation, or that of the person's spouse, not exceeding fifteen thousand dollars ($15,000) in the aggregate; (6) the person's right to receive: (a) social security benefits; (b) veteran's benefits; (c) disability, illness, unemployment or workers' compensation benefits; (d) public benefits such as medicaid, medicare, food stamps or other aid from a government public assistance program; (e) alimony, family or domestic support or separate maintenance to the extent reasonably necessary for the support of the person or any dependent of the person; and (f) payment pursuant to a stock bonus, pension, profit-sharing individual retirement account, annuity or similar plan or contract on account of illness, disability, death or length of service, to the extent reasonably necessary for the support of the person or any dependent of the person, unless such plan or contract does not qualify pursuant to Section 401(a), 403(a), 403(b) or 408 of the Internal Revenue Code of 1986; (7) refundable federal and state tax credits; (8) exempt wages as defined by Section 35-12-7 NMSA 1978; (9) any stimulus payment held by or payable to the person or the person's dependents in any form; (10) an interest in or proceeds from a pension, individual retirement account, annuity, profit-sharing plan and any other retirement account; (11) an individual retirement account that would qualify for tax exemptions under 26 U.S.C. 408 or any similar individual retirement account; (12) an educational savings account that would qualify for tax exemptions under 26 U.S.C. 529 or any similar educational savings account; (13) a health savings account that would qualify for tax exemptions under 26 U.S.C. 223 or any similar health savings account; and (14) a person's aggregate interest, not exceeding fifteen thousand dollars ($15,000), in any personal property, tangible or intangible, not otherwise specified in this subsection, including any deposits in financial or investments accounts or personal property that exceeds the monetary limits set forth in this section; provided that for an individual or sole proprietor who is a defendant in any action except a bankruptcy action, the maximum cumulative amount that a defendant may claim as exempt in a depository or investment account is two thousand four hundred dollars ($2,400), plus any money derived from the sources set forth in Paragraphs (6) through (11) of this subsection. B. As used in this section, "household goods and furnishings" means items primarily used by or for the support and maintenance of the household of the person or the person's spouse, family and dependents, including: (1) furniture; (2) appliances such as a refrigerator, stove, oven, freezer, clothes washer, clothes dryer, dishwasher, microwave, coffee maker, toaster and vacuum cleaner; (3) clothing and personal effects; (4) electronic equipment such as televisions, radios, cellular telephones, computers, computer equipment, digital or compact disc players and other electronic consumer devices; (5) medical equipment, supplies and professionally prescribed health aids reasonably necessary for the care and support of the person or any dependent of the person; (6) musical instruments, not exceeding four thousand dollars ($4,000) in the aggregate; (7) toys, games, sports, hobby and craft equipment, materials and supplies, not exceeding two thousand five hundred dollars ($2,500) in the aggregate; (8) books; and (9) two firearms. C. Property exempted pursuant to the provisions of this section shall be valued at the property's fair market value. 1953 Comp., § 24-5-1, enacted by Laws 1971, ch. 215, § 1; 1979, ch. 182, § 1; 1981, ch. 113, § 1; 1983, ch. 69, § 1; 2023, ch. 104, § 4.

NMSA 1978, § 42-10-3 [Life, accident and health insurance benefits.]

42-10-3. [Life, accident and health insurance benefits.] The cash surrender value of any life insurance policy, the withdrawal value of any optional settlement, annuity contract or deposit with any life insurance company, all weekly, monthly, quarterly, semiannual or annual annuities, indemnities or payments of every kind from any life, accident or health insurance policy, annuity contract or deposit heretofore or hereafter issued upon the life of a citizen or resident of the state of New Mexico, or made by any such insurance company with such citizen, upon whatever form and whether the insured or the person protected thereby has the right to change the beneficiary therein or not, shall in no case be liable to attachment, garnishment or legal process in favor of any creditor of the person whose life is so insured or who is protected by said contract, or who receives or is to receive the benefit thereof, nor shall it be subject in any other manner to the debts of the person whose life is so insured, or who is protected by said contract or who receives or is to receive the benefit thereof, unless such policy, contract or deposit be taken out, made or assigned in writing for the benefit of such creditor. Laws 1937, ch. 223; § 1; 1941 Comp., § 21-503; 1953 Comp., § 24-5-3.

NMSA 1978, § 42-10-4 Benevolent associations; benefits

42-10-4. Benevolent associations; benefits Any beneficiary fund not exceeding fifty thousand dollars ($50,000) set apart, appropriated or paid by any benevolent association or society, according to its rules, regulations or bylaws, to the family of any deceased member or to any member of the deceased member's family, shall not be liable to be taken by any process or proceedings, legal or equitable, to pay any debts of the deceased member. Laws 1887, ch. 37, § 7; C.L. 1897, § 1741; Code 1915, § 2315; C.S. 1929, § 48-105; 1941 Comp., § 21-504; 1953 Comp., § 24-5-4; 1978 Comp., § 42-10-4; 2023, ch. 104, § 5.

NMSA 1978, § 42-10-5 [Life insurance proceeds.]

42-10-5. [Life insurance proceeds.] The proceeds of any life insurance are not subject to the debts of the deceased, except by special contract or arrangement, to be made in writing. C.L. 1884, § 1422, substituted by Laws 1889, ch. 90, § 21; C.L. 1897, § 2042; Code 1915, § 2316; C.S. 1929, § 48-106; 1941 Comp., § 21-505; 1953 Comp., § 24-5-5.

NMSA 1978, § 42-10-6 Personal property used as a security under the Uniform Commercial Code is not exempt

42-10-6. Personal property used as a security under the Uniform Commercial Code is not exempt A secured creditor who has personal property of the debtor as security as provided by the Uniform Commercial Code [Chapter 55 NMSA 1978] may proceed according to the terms of the security instrument and the Uniform Commercial Code. The debtor cannot exempt personal property given to a secured creditor as security unless there be more property than is necessary to pay the debt to the secured creditor. The debtor may claim an exemption out of the surplus. 1953 Comp., § 24-5-6, enacted by Laws 1971, ch. 215, § 3.

NMSA 1978, § 42-10-7 Taxes excepted

42-10-7. Taxes excepted Sections 42-10-1 through 42-10-7 NMSA 1978 are not applicable to taxes. 1953 Comp., § 24-5-7, enacted by Laws 1971, ch. 215, § 4; 1978 Comp., § 42-10-7; 2023, ch. 104, § 6.

NMSA 1978, § 42-10-9 Homestead exemption

42-10-9. Homestead exemption A. A person shall have a homestead exemption in a domicile or land owned by the person that is the primary residence of the person. Such homestead is exempt from attachment, execution or foreclosure by a judgment creditor and from any proceeding of receivers or trustees in insolvency or bankruptcy proceedings and from executors or administrators in probate. B. The amount of the homestead exemption is: (1) one hundred fifty thousand dollars ($150,000); or (2) three hundred thousand dollars ($300,000) if the spouse of the person claiming the exemption died within two years prior to the date of claiming the homestead exemption and if the deceased spouse would have been able to claim the homestead exemption had the deceased spouse survived until the date of claiming the homestead exemption. C. As used in this section, "domicile" means any shelter or dwelling used by the person as a primary residence and may include a mobile home, trailer, recreational vehicle, outbuilding or other similar shelter, regardless of whether such dwelling complies with relevant housing or building regulations. D. This section shall be liberally construed in favor of the person claiming a homestead exemption. E. The provisions of this section shall not apply to garnishment or properly perfected liens of secured creditors. 1953 Comp., § 24-6-1, enacted by Laws 1971, ch. 215, § 6; 1973, ch. 277, § 1; 1978 Comp., § 42-10-9; 1979, ch. 9, § 1; 1979, ch. 182, § 3; 1987, ch. 193, § 1; 1993, ch. 44, § 1; 2007, ch. 95, § 1; 2023, ch. 104, § 7.

NMSA 1978, § 42-10-10 Exemption in lieu of homestead

42-10-10. Exemption in lieu of homestead Any resident of this state who does not own a homestead shall in addition to other exemptions hold exempt real or personal property in the amount of fifteen thousand dollars ($15,000) in lieu of the homestead exemption. 1953 Comp., § 24-6-2, enacted by Laws 1971, ch. 215, § 7; 1978 Comp., § 42-10-10; 1979, ch. 9, § 2; 1979, ch. 182, § 4; 2007, ch. 95, § 2; 2023, ch. 104, § 8.

NMSA 1978, § 42-10-11 When homestead exemption does not apply

42-10-11. When homestead exemption does not apply The provisions of this article [42-10-9 to 42-10-12 NMSA 1978] do not apply or extend to taxes, garnishment, recorded liens of mortgagees or lessors or recorded liens of laborers or materialmen for labor or materials furnished for the construction or repair of the dwelling house. 1953 Comp., § 24-6-3, enacted by Laws 1971, ch. 215, § 8.

NMSA 1978, § 42-10-13 Claim of exemption or priority

42-10-13. Claim of exemption or priority A. Any person desiring to claim that property is exempt from execution or garnishment or is subject to execution only after other property is used to satisfy a debt under the provisions of Sections 40-3-10 and 40-3-11 NMSA 1978 shall file a claim of exemption or priority in the appropriate court; provided that the time to file that claim of exemption shall not be less than ten days after the filing of a writ of execution as set forth in New Mexico Rule of Civil Procedure 1-065.1 [1-065.1 NMRA]. B. A notice of the right to claim exemption to garnishment, execution, levy, attachment or foreclosure or a form to file or claim that exemption shall be provided by the creditor to the person whose property is subject to garnishment, execution, levy, attachment or foreclosure, and that notice shall contain a complete list of exemptions provided by the law. 1953 Comp., § 24-7-1, enacted by Laws 1975, ch. 246, § 1; 1978 Comp., § 42-10-13; 2023, ch. 104, § 9.

NMSA 1978, § 42-10-14 Cost-of-living adjustments

42-10-14. Cost-of-living adjustments A. On July 1, 2025, and at each two-year interval ending on July 1 thereafter, each dollar amount provided for in Sections 35-12-18, 42-10-1, 42-10-4, 42-10-9 and 42-10-10 NMSA 1978 shall be adjusted to reflect the change in the consumer price index for all urban consumers as published by the United States department of labor for the most recent two-year period ending immediately before such January 1 preceding such July 1. The administrative office of the courts shall publish any adjustments to the exemptions in Sections 35-12-18, 42-10-1, 42-10-4, 42-10-9 and 42-10-10 NMSA 1978 every two years on July 1, beginning July 1, 2025. The dollar amount shall be adjusted to the twenty-five-dollar ($25.00) increment nearest to the dollar amount that represents such change. B. Adjustments made in accordance with Subsection A of this section shall not apply to legal proceedings commenced prior to the date of such adjustments. 1978 Comp., § 42-10-14, enacted by Laws 2023, ch. 104, § 10.

Source: New Mexico Compilation Commission (nmonesource.com)URL: https://nmonesource.com/nmos/nmsa-unanno/en/item/18542/index.doFetched: 10/20/2026