Taxation of Employee Benefits: New Mexico
Federal law and guidance on this subject should be reviewed together with this section.
Author: XpertHR Editorial Team
- Same-sex marriage is legal in New Mexico. Based on the US Supreme Court ruling in Obergefell v. Hodges, the value of health insurance benefits provided to an employee's same-sex spouse is not subject to state income tax withholding. Since same-sex civil unions and domestic partnerships are not recognized, the value of health insurance benefits provided to civil union partners and domestic partners is taxable in the state. See Same-Sex Couple Health Insurance Benefits.