How Rhode Island taxes retirement income

Some 2026 figures pending confirmation Tax year 2026 · research last updated October 3, 2026

Rhode Island taxes some Social Security, depending on age or income.
Exclusions and subtractions for retirement income (details below):
- Pension and annuity income modification: at most $50,000 per person, income limits apply.
Rates for 2026: 3.75% to 5.99%, graduated.

At a glance

Income tax	Yes
Rates (2026)	3.75% to 5.99%, graduated
Starts from	Federal adjusted gross income (AGI)
Standard deduction	$11,200 single, $22,400 married filing jointly
Personal exemption	$5,250 per person
Social Security	Partly taxed, depending on age or income
Retirement income exclusions	1 (see below)
Roth conversions	Taxable
Capital gains	Taxed like other income
Local income tax	None

Tax rates

Brackets apply to Rhode Island taxable income. Other filing statuses are in the rules reference.

Rate	Single: taxable income	Married filing jointly: taxable income
3.75%	$0 to $82,050	$0 to $82,050
4.75%	$82,050 to $186,450	$82,050 to $186,450
5.99%	$186,450 and up	$186,450 and up

Rhode Island taxes some Social Security, depending on age or income.

Schedule M Social Security modification (R.I. Gen. Laws §44-30-12): subtract ALL Social Security included in federal AGI if (1) some SS is federally taxable, (2) the taxpayer has reached Social Security full retirement age (66 for 1943-54 births, rising 2 months/yr to 67 for 1960+; applied per spouse), and (3) federal AGI is below the annual threshold. Tax Year 2025 thresholds: single/HOH/MFS $107,000; MFJ/QSS $133,750 per ADV 2025-22 ($133,500 per Pub 2026-01). This is a cliff — $1 over the threshold loses the entire modification. 2026 thresholds are indexed and not yet published. Otherwise SS is taxed as it is federally. Starting tax year 2027 the full-retirement-age requirement is eliminated (FY2027 budget, H 7127 Sub A); 2026 still requires FRA.

Pensions, IRAs and 401(k)s

Pension and annuity income modification

Limit: $50,000 per person · Applies to: pensions, annuities, 401(k) distributions, 403b, 457b, tsp, government pensions, profit-sharing

Up to $50,000 per qualifying individual (so up to $100,000 on a joint return if both spouses are at FRA and have their own qualifying income) of federally taxable pension/annuity income — i.e., amounts properly on federal Form 1040 line 5b. Raised from $20,000 to $50,000 starting tax year 2025. Does NOT include IRA distributions of any kind (traditional, Roth, SEP, SIMPLE — line 4b), completed rollovers, or corrective distributions. Separate from the Social Security modification (both can be taken). Military pensions are fully exempt under a separate modification and can't be double-counted.

Income limit: Same cliff threshold as the Social Security modification: federal AGI less than $107,000 single/HOH/MFS, $133,750 MFJ (2025, ADV 2025-22; the retirement guide prints $133,500 and says '$... or less', but the statute says 'less than'). 2026 threshold indexed, not yet published.

Roth conversions

A Roth conversion counts as taxable income for Rhode Island. Whether a retirement income exclusion can cover part of it depends on the rules above.

Capital gains

Taxed like other income, at the rates above.

Credits and relief for older residents

Property tax relief credit (Form RI-1040H). Refundable credit for property tax (or rent) paid above a percentage of household income, for qualifying households including those age 65+ or disabled. 2025 percent-of-income table: 3% (<$6,991) up to 6% ($17,461-$40,730); maximum credit $700 for 2025 (indexed). Full eligibility rules on Form RI-1040H. Income limit: Household income <= $40,730 (2025)

More detail from our research notes

RI has no age-65 extra deduction and no itemized deductions. Both retirement modifications hinge on federal AGI (not modified AGI) and are all-or-nothing cliffs, so a Roth conversion or large IRA withdrawal that pushes federal AGI over the threshold can eliminate both the SS modification and up to $50,000 per person of pension modification — an important planning interaction. IRA withdrawals and Roth conversions are fully taxable at RI rates and never qualify for the pension modification; 401(k)/403(b)/457(b) distributions DO qualify. An in-plan 401(k) Roth rollover or a 401(k)-to-Roth-IRA conversion is reported on federal line 5b and so may literally qualify — not addressed by the Division. Full retirement age is determined per person; on a joint return only the spouse at FRA gets the pension modification on their own income.

Pending confirmation

These points were still being confirmed against Rhode Island's published 2026 forms when this page was built. Most are waiting on forms the state publishes around the turn of the year.

2 items

Tax Year 2026 SS/pension modification AGI limits are indexed and NOT yet published (checked 2026-10-02: the Division's advisories list ends at ADV 2026-19, Sept 2026; ADV 2026-02 of Jan 14 2026 only points back to ADV 2025-22). The derived $110,350 single/HOH/MFS and $137,950 MFJ stay until the November 2026 inflation advisory (ADV 2025-22 came out Nov 3 2025), https://tax.ri.gov/guidance/advisories. Settled: the 2025 MFJ limit is $133,750 (ADV 2025-22; a 2016-base CPI computation reproduces it, Tools/reference/STATE_README.md), and the test is 'less than' the limit (44-30-12(c)(8)(i)-(ii) as reprinted in H 7127 Sub A Art. 6 sec. 5), not 'or less' as Pub 2026-01 says.
Property tax relief credit (RI-1040H) 2026 parameters and full eligibility rules not re-read from the form (2026 RI-1040H expected Dec 2026/Jan 2027; not modeled in Taxtirement).

Sources

Every figure comes from these documents, mostly the state's own forms, instructions and statutes.

2026 uniform rate schedule, 2026 standard deductions, $5,250 exemption, 2026 phase-out range; 2025 SS/pension thresholds; $50,000 pension modification; RI-1040H 2025 max credithttps://tax.ri.gov/sites/g/files/xkgbur541/files/2025-11/ADV_2025_22_Inflation_Adjustments.pdf
Retirement Income Guide (Pub 2026-01, TY2025): what qualifies (no IRAs), full retirement age table, AGI thresholds, per-person $50,000, SS modificationhttps://tax.ri.gov/sites/g/files/xkgbur541/files/2026-02/PUB_2026-01_Retirement_Income_Guide.pdf
2026 summary of legislative changes (July 22 2026): SS modification age requirement removed from TY2027 (income limit kept); 1%/2%/3% high-income surtax over $1,000,000 from TY2027/2028/2029, same threshold for all filing statuses, indexedhttps://tax.ri.gov/sites/g/files/xkgbur541/files/2026-07/2026_summary_of_legislative_changes.pdf
H 7127 Sub A as amended (FY2027 budget, enacted 6/12/2026), Art. 6 sec. 5: 44-30-2.6(c)(3)(A)(I)(2) surtax text (2027 $1,000,000 not indexed; 2028+ 'as adjusted for inflation'; (E)(III) base year 2026); 44-30-2.6(c)(3)(B)(III) and (D): standard deduction…https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7127Aaa.pdf
RIGL 44-30-12(c)(9): 'taxable pension and/or annuity income that is included in federal adjusted gross income' ; the Division's 2026 Retirement Income Guide counts everything on 1040 line 5b , so 401(k) withdrawals and 401(k)-to-Roth conversions qualify;…https://webserver.rilegislature.gov/Statutes/TITLE44/44-30/44-30-12.htm

Taxtirement's Rhode Island calculation is also checked against a second, independent implementation on 1,000 random households. How we check our numbers.

See your own years. Taxtirement applies these Rhode Island rules, and the federal and Medicare rules, to your household for every year of retirement, and shows the calculation behind each number. Coming November 2026 for iPhone, iPad and Mac.

This page summarizes Rhode Island's 2026 rules as Taxtirement applies them, for education and planning. It isn't tax advice, and it doesn't cover every situation (for example part-year residents, businesses or military-only provisions). Rules change; check the state's current instructions, or a tax professional, before you act. Spotted something wrong? Tell us.