Early retirement in NM

[amclean87111]

I retired early from teaching as of 31 Dec. 2022.  The only thing deducted from that pay is federal tax.  Since it is my retirement, I don't owe Social Security and Medicare taxes on it, do I?  And I was a teacher, so officially I am a state employee, so will I owe state taxes here in New Mexico on my income?

[VincentL12345]

Retirement income from a pension or retirement account, such as an IRA or a 401(k), is taxable in New Mexico. As with Social Security, these forms of retirement income are deductible. Income in excess of the deduction, which is $8,000 for seniors, is taxed at New Mexico's income tax rates.

You don't owe Social Security and Medicare taxes on it since it is not earned income but passive income.