State retirement taxes · 2026
Does Rhode Island tax retirement income?
Short answer: Partly. Social Security is exempt only once you reach full retirement age and only if AGI is under the limit ($107,000 single / $133,750 joint for 2025). Up to $50,000 per person of pension and 401(k) income — not IRAs — is subtracted at full retirement age, under the income limit.
AGI is the adjusted gross income on your federal tax return.
What’s taxed in Rhode Island
2026 rules. AGI means the adjusted gross income on your federal return.
- Social SecurityPartly taxed
- Social Security is exempt only once you reach full retirement age and only if AGI is under the limit ($107,000 single / $133,750 joint for 2025).
- PensionsPartly taxed
- At full retirement age, up to $50,000 per person of pension and 401(k) income is subtracted — if AGI is under the limit.
- IRA & 401(k) withdrawalsPartly taxed
- IRA withdrawals are fully taxable; 401(k), 403(b), 457(b) and TSP payouts qualify for the $50,000 pension break.
- Military retirement payNot taxed
- Military service pensions, including survivor benefits, are fully exempt since 2023, with no age or income test.
- Income tax rate5.99% top
- Three brackets for every filing status in 2026: 3.75% up to $82,050, 4.75% up to $186,450 and 5.99% above.
Does Rhode Island tax Social Security?
Social Security is exempt only once you reach full retirement age and only if AGI is under the limit ($107,000 single / $133,750 joint for 2025).
Taxable Social Security is fully subtracted only if you have reached your Social Security full retirement age (for 2025: born on or before March 1, 1959) and your federal AGI is below the threshold — $107,000 single, head of household or separate, and $133,750 joint for 2025. It’s a cliff: above the limit, none of it is subtracted. The 2026 limits come in the Division of Taxation’s fall advisory and are not yet published. If only one spouse has reached full retirement age, the subtraction is prorated. From 2027 the full-retirement-age requirement is dropped (the income limit stays).
Your federal return is a separate question — see how much of your benefit the IRS taxes with the taxable Social Security calculator.
Are pensions taxed in Rhode Island?
At full retirement age, up to $50,000 per person of pension and 401(k) income is subtracted — if AGI is under the limit.
From 2025, up to $50,000 per person ($100,000 for a couple) of federally taxable pension and annuity income is subtracted (it was $20,000 for 2023–2024). You must have reached full retirement age and have AGI under the same limit as the Social Security break ($107,000 / $133,750 for 2025; 2026 not yet published). Private, federal, state and local pensions, 401(k), 403(b), governmental 457(b), TSP and annuities qualify. The age test stays for pensions even after 2027.
Public vs. private pensions: Same $50,000 cap for both.
Are IRA and 401(k) withdrawals taxed in Rhode Island?
IRA withdrawals are fully taxable; 401(k), 403(b), 457(b) and TSP payouts qualify for the $50,000 pension break.
No income from a traditional, Roth, SEP, SIMPLE or any other IRA qualifies for the pension and annuity subtraction.
Required minimum distributions (RMDs) are IRA and 401(k) withdrawals, so the same rules apply. Estimate your RMD.
Is military retirement pay taxed in Rhode Island?
Military service pensions, including survivor benefits, are fully exempt since 2023, with no age or income test.
What is Rhode Island’s income tax rate?
3 brackets, topping out at 5.99%.
Three brackets for every filing status in 2026: 3.75% up to $82,050, 4.75% up to $186,450 and 5.99% above. From 2027 a surtax applies to income over $1 million: 1% in 2027, 2% in 2028 and 3% from 2029.
2026 brackets. Each rate applies to taxable income above the amount shown.
| All filers | Rate |
|---|---|
| $0 | 3.75% |
| $82,050 | 4.75% |
| $186,450 | 5.99% |
Standard deduction and exemptions
2026 standard deduction: $11,200 single or separate, $16,800 head of household, $22,400 joint. Personal exemption: $5,250. Both phase out between $261,000 and $290,800 of modified AGI.
What tax breaks do seniors get in Rhode Island?
The Social Security and pension subtractions above. The property tax relief credit (Form RI-1040H) was up to $700 for 2025, for households with income up to $40,730.
What changed for 2026?
2025: the pension subtraction rose from $20,000 to $50,000 per person. 2026 law (H 7127 Sub A): drops the full-retirement-age test for the Social Security subtraction from 2027 (the income limit stays, and the pension subtraction keeps its age test), adds the millionaire surtax from 2027, and adds a $330 refundable child tax credit from 2027. No change to the pension cap or the rate schedule for 2026.
2026 brackets and deductions are official; the 2026 income limits for the Social Security and pension breaks are not yet published.
What we couldn’t confirm
- Rhode Island’s 2026 income limits for the Social Security and pension subtractions are not yet published; we show the 2025 limits.
- A Division guide prints the 2025 joint limit as $133,500; the forms and the advisory use $133,750, which we show.
How Rhode Island compares with its neighbors
Thinking of moving across the line? Here’s how each bordering state treats retirement income in 2026.
- Rhode IslandThis pageMixedSocial Security Partly taxedTop rate: 5.99% top
- ConnecticutMixedSocial Security Partly taxedTop rate: 6.99% top
- MassachusettsFriendlySocial Security Not taxedTop rate: 9% top
State tax is half the picture — check the federal side
Rhode Island retirement tax questions
Is Rhode Island tax-friendly for retirees?
We rate Rhode Island “Mixed” for 2026. Social Security is exempt only once you reach full retirement age and only if AGI is under the limit ($107,000 single / $133,750 joint for 2025). Up to $50,000 per person of pension and 401(k) income — not IRAs — is subtracted at full retirement age, under the income limit. The top income tax rate is 5.99%.
Are required minimum distributions (RMDs) taxed in Rhode Island?
RMDs are withdrawals from IRAs and 401(k)-type plans, so they follow Rhode Island’s rules for those accounts. IRA withdrawals are fully taxable; 401(k), 403(b), 457(b) and TSP payouts qualify for the $50,000 pension break.
Is military retirement pay taxed in Rhode Island?
No. Military service pensions, including survivor benefits, are fully exempt since 2023, with no age or income test.
Does Rhode Island exempt IRA withdrawals?
No. The $50,000-per-person pension and annuity subtraction covers pensions, 401(k), 403(b), governmental 457(b) and TSP payouts, but no income from any kind of IRA qualifies. IRA withdrawals are taxed at 3.75% to 5.99% in 2026.
Sources for Rhode Island
Primary sources only. We re-check them whenever an agency publishes new figures.
- State
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