New Mexico Child Tax Credit

New Mexico has a Child Tax Credit worth up to $637 per qualifying child. It is refundable, which means it can come back to you as cash even if you owe no state tax. There is no separate application. You claim it on your New Mexico personal income tax return for each qualifying child.

The amount steps down by income. For the 2025 tax year, the credit per child is $637 for adjusted gross income up to $25,000. It then drops in steps: $424, then $212, then $106, then $79, then $53, and down to $26 for income over $350,000.

The largest credits go to the lowest incomes. Because it is refundable, a family can receive the full per-child amount as a refund even with no tax owed. That is why filing matters, even for families that normally would not.

It follows the federal definition of a child. You can claim the credit for each qualifying child, using the definition in the federal tax code. To be eligible, you must be a New Mexico resident with at least one qualifying child, and you cannot be claimed as someone else's dependent.

The credit is widely claimed. In the 2025 tax year, about 251,000 taxpayers claimed a total of $136.7 million, which averaged $545 per taxpayer. The credit was created in 2022 and expanded in 2023, and families began claiming it on their 2023 returns.

Here is how to claim it. You file the credit on line 25 of the PIT-RC, the Rebate and Credit Schedule, with your PIT-1 return. Instructions are in the PIT-1 packet on the state Forms and Publications page, at many public libraries, and at any Taxation and Revenue district office. You can file or amend for free through the state Taxpayer Access Point.