Does Rhode Island tax Social Security?

Rhode Island exempts Social Security benefits from state tax if your modified AGI is below an annual threshold — roughly $104,200 single or $130,250 joint for 2024 — and you have reached full retirement age. Above those thresholds, Social Security is taxed as ordinary income.

Does Rhode Island tax pensions and 401(k) withdrawals?

Yes, generally. Pension, annuity, IRA, and 401(k) income is taxable in Rhode Island as ordinary income. However, taxpayers at full retirement age with modified AGI under the threshold can exclude up to $20,000 of qualifying pension and annuity income.

What is the Rhode Island pension exclusion amount?

Rhode Island allows eligible retirees to subtract up to $20,000 of qualifying pension and annuity income from taxable income. Eligibility requires reaching full retirement age and having modified AGI below the annual threshold; the exclusion phases out above it.

How are IRA and 401(k) distributions taxed in Rhode Island?

Traditional IRA and 401(k) withdrawals are taxed as ordinary income at Rhode Island's brackets of 3.75%, 4.75%, and 5.99%. Roth distributions that are qualified are generally tax-free at both the federal and Rhode Island levels.

Is Rhode Island tax-friendly for retirees?

Moderately. Rhode Island exempts Social Security and up to $20,000 of pension income for retirees under the income thresholds, but it still taxes most retirement withdrawals and has relatively high property taxes. Higher-income retirees lose the exemptions.

Rhode Island Retirement Income Tax Calculator

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Rhode Island taxes most retirement income but offers two income-tested breaks: a Social Security exemption and a pension and annuity income modification. This calculator applies both, taxes the rest as ordinary income, and shows your Rhode Island state tax.

How it works

Rhode Island starts from your federal taxable retirement income, then applies modifications if you qualify. Both breaks require reaching full retirement age and having modified AGI below the annual threshold — about 104,200 dollars single or 130,250 dollars joint for 2024.

SS exclusion      = full Social Security if eligible, else $0
pension exclusion = min(pension + annuity income, $20,000) if eligible
taxable           = (SS + pension + IRA/401k) − SS exclusion − pension exclusion

Whatever remains — including IRA and 401(k) withdrawals — is taxed as ordinary income at Rhode Island’s brackets: 3.75 percent up to 73,450 dollars, 4.75 percent to 166,950 dollars, and 5.99 percent above that.

Example

A retiree at full retirement age with 30,000 dollars Social Security, 25,000 dollars pension, and 20,000 dollars in 401(k) withdrawals, with modified AGI under the threshold, excludes all 30,000 dollars of Social Security and 20,000 dollars of pension. That leaves 5,000 dollars of pension plus 20,000 dollars of 401(k) = 25,000 dollars taxable, about 938 dollars of Rhode Island tax.

Notes

This simplified tool applies the full Social Security and 20,000 dollar pension exclusions when you mark yourself eligible, and zero when not; the real phase-out near the threshold is gradual. It does not model the standard deduction or personal exemptions, which further reduce your tax. Estimate only, not tax advice — confirm thresholds at tax.ri.gov.