Gregg Hull Introduces “Four Steps to Zero” Tax Relief Proposal
Plan would phase out tax on eligible personal income while keeping net business profits taxable
ALBUQUERQUE, New Mexico (October 5, 2026) — Gubernatorial candidate Gregg Hull today introduced Four Steps to Zero, a proposal to let New Mexicans keep more of their income while requiring funding for classrooms, healthcare, public safety and existing refundable tax benefits before each tax reduction.
The proposal would phase out state income tax on qualifying wages, retirement income and other eligible personal income through four steps. Net business profits would remain taxable.
Relief would begin with the first $25,000 of eligible taxable personal income for single filers and $50,000 for married couples filing jointly. These amounts apply after relevant deductions and exemptions, not to gross salary. People earning above those amounts would still receive the benefit on that first portion of eligible income. Later steps would expand the tax-free portion until the remaining tax on eligible personal income is eliminated.
The plan is four steps. Every step would depend on legislative authority, the state’s ability to fund its obligations after the tax reduction, and readiness to administer the change. If those requirements could not be met, the next step would wait.
Funding for protected services would take priority over the plan’s spending-growth target. The proposal would preserve eligible refundable tax benefits and would not finance the reductions by raising other taxes.
The proposal requires legislative passage. A complete statewide fiscal analysis and detailed implementation rules remain to be completed, and an affordable completion schedule has not yet been established.
If the full plan cannot secure passage, Hull would pursue separate legislation to remove the remaining state income tax on Social Security benefits and qualifying military retirement pay, with its costs evaluated and the same fiscal and service protections applied.
The accompanying media fact sheet (download here) and full white paper (download here) explain the proposed steps, household examples, financial safeguards and analysis still required before implementation.
