How Rhode Island taxes retirement income
Rhode Island does not tax Social Security benefits. Pensions and 401(k)/IRA withdrawals are partly taxed (there is an exclusion, then the rest is taxed). Rhode Island has no blanket exemption for Social Security. A modification removes taxable Social Security from federal AGI only for taxpayers who have reached Social Security full retirement age AND whose federal AGI is below an inflation-adjusted threshold (Tax Year 2025, most recent published figures: $107,000 single/HoH/MFS, $133,500 MFJ/qualifying widow(er), 2026 thresholds not yet posted as of this writing). Taxpayers below full retirement age, or over the income limit, have Social Security taxed the same as under federal rules. Separately, a Pension and Annuity Income Modification lets qualifying taxpayers (same full-retirement-age + AGI-threshold test) exclude up to $50,000 per individual ($100,000 for a married couple, each spouse claiming their own $50,000) of pension, annuity, 401(k), 403(b), 457(b), and similar taxable retirement income, but this modification explicitly does NOT apply to traditional/Roth/SEP/SIMPLE IRA withdrawals, which are fully taxed as ordinary income regardless of age or income. Military service pensions are a separate, unconditional full exemption (no age or income test) for tax years beginning on or after January 1, 2023.
Retirement income tax in Rhode Island, at a glance
| Income type | Taxed by Rhode Island? |
|---|---|
| Social Security | Yes |
| Pensions | Partially (exclusion applies) |
| 401(k) / IRA withdrawals | Yes |
| Estate / inheritance tax | Estate tax (exemption $1,838,056) |
| Avg. property tax rate | 1.19% of home value |
Does Rhode Island tax Social Security benefits?
Yes, Rhode Island taxes some Social Security income.
Does Rhode Island tax pensions and 401(k) or IRA withdrawals?
Partly. Rhode Island has no blanket exemption for Social Security. A modification removes taxable Social Security from federal AGI only for taxpayers who have reached Social Security full retirement age AND whose federal AGI is below an inflation-adjusted threshold (Tax Year 2025, most recent published figures: $107,000 single/HoH/MFS, $133,500 MFJ/qualifying widow(er), 2026 thresholds not yet posted as of this writing). Taxpayers below full retirement age, or over the income limit, have Social Security taxed the same as under federal rules. Separately, a Pension and Annuity Income Modification lets qualifying taxpayers (same full-retirement-age + AGI-threshold test) exclude up to $50,000 per individual ($100,000 for a married couple, each spouse claiming their own $50,000) of pension, annuity, 401(k), 403(b), 457(b), and similar taxable retirement income, but this modification explicitly does NOT apply to traditional/Roth/SEP/SIMPLE IRA withdrawals, which are fully taxed as ordinary income regardless of age or income. Military service pensions are a separate, unconditional full exemption (no age or income test) for tax years beginning on or after January 1, 2023.
For the mechanics of required withdrawals in retirement, see what is an RMD.
Sources
- Rhode Island taxation of retirement income (Social Security, pensions, 401(k)/IRA): Rhode Island Department of Revenue / Taxation.
- Rhode Island estate / inheritance tax: Rhode Island tax authority.