Rhode Island retirement taxes at a glance (2026)
| State income tax | Graduated, top rate 5.99%Rhode Island has a graduated income tax with rates of 3.75%, 4.75%, and 5.99%. |
|---|---|
| Social Security | TaxedTaxable Social Security is fully exempt if you have reached Social Security full retirement age and your federal AGI is at or below $107,000 (single) or $133,500 (joint) for 2025. Above those limits the full federally taxable amount is taxed; there is no phase-out. |
| Pensions | Partly taxedFrom tax year 2025, up to $50,000 per person ($100,000 per couple) of taxable pension, 401(k), 403(b), 457(b), and annuity income is exempt if you have reached full retirement age and your AGI is under the same limits as the Social Security exemption. Exclusion: up to $50,000. |
| 401(k) and IRA withdrawals | Partly taxed401(k), 403(b), and 457(b) distributions qualify for the $50,000 pension modification. IRA distributions (traditional, SEP, SIMPLE) do not qualify and are fully taxed. |
| Government pensions | Partly taxedGovernment pensions are treated like private pensions and can use the $50,000 modification if the age and income tests are met. |
| Military retirement pay | Not taxedMilitary service pensions are fully exempt since tax year 2023, with no age or income limits. |
| Estate tax | Yes, above $1,838,056Rhode Island has an estate tax. For deaths on or after January 1, 2026, the first $1,838,056 of an estate is exempt; the amount is indexed to inflation each year. |
| Inheritance tax | No |
| Property tax help for seniors | The state property tax relief credit (Form RI-1040H) gives homeowners and renters age 65+ with low household income a credit of up to about $700; cities and towns may offer their own senior exemptions. |
Recent changes and good to know
- The pension and annuity modification rose from $20,000 to $50,000 per person starting tax year 2025 (it was $15,000 for 2017-2022 and $20,000 for 2023-2024).
- The AGI limits are a cliff, not a phase-out, and are indexed for inflation each year; 2026 limits were not yet published in the sources checked.
- Full retirement age (66-67 depending on birth year) is required, not age 65.
How to lower your retirement taxes in Rhode Island
- Mix your income sources. Roth IRA withdrawals are tax-free at the federal level and generally in Rhode Island too, so a Roth conversion before retirement can cut state tax later. Try the Roth conversion calculator.
- Watch federal Medicare costs. Large IRA withdrawals can raise your Medicare premiums. Check the 2026 IRMAA brackets.
- Think about your heirs. See what your IRA will really cost your family with the Family Tax Rate calculator.
- Comparing states? These have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.
Frequently asked questions
Does Rhode Island tax retirement income?
Partly: Rhode Island exempts Social Security and up to $50,000 of pension and 401(k) income for retirees at full retirement age with AGI under about $107,000 (single) or $133,500 (joint), but IRA withdrawals and income of higher earners are taxed.
Does Rhode Island tax Social Security?
Taxable Social Security is fully exempt if you have reached Social Security full retirement age and your federal AGI is at or below $107,000 (single) or $133,500 (joint) for 2025. Above those limits the full federally taxable amount is taxed; there is no phase-out.
Does Rhode Island tax pensions?
From tax year 2025, up to $50,000 per person ($100,000 per couple) of taxable pension, 401(k), 403(b), 457(b), and annuity income is exempt if you have reached full retirement age and your AGI is under the same limits as the Social Security exemption.
Does Rhode Island tax 401(k) and IRA withdrawals?
401(k), 403(b), and 457(b) distributions qualify for the $50,000 pension modification. IRA distributions (traditional, SEP, SIMPLE) do not qualify and are fully taxed.
Does Rhode Island tax military retirement pay?
Military service pensions are fully exempt since tax year 2023, with no age or income limits.
Does Rhode Island have an estate or inheritance tax?
Rhode Island has an estate tax. For deaths on or after January 1, 2026, the first $1,838,056 of an estate is exempt; the amount is indexed to inflation each year.
Sources (last verified 2026)
- Rhode Island Retirement Income Tax Guide (Publication 2026-01, Tax Year 2025) — RI Division of Taxation (2026-02)
- Estate tax updates advisory (ADV 2025-27) — RI Division of Taxation (2025-12)
- State Individual Income Tax Rates and Brackets, 2026 — Tax Foundation (2026)
- Rhode Island Retirement Income Tax: A Senior's Guide (2026) — Brevy Care (2026)
Educational content only, not tax, legal or investment advice. Plans and tax laws change; confirm details with your employer's plan documents or your state revenue department. Smart Financial Lifestyle is not affiliated with any employer named on this site.