Retiring in Rhode Island: how your income is taxed
Rhode Island is fairly tax-friendly for retirees. On a typical retirement income it ranks #21 of 51 for the lowest state income tax.
The rules in Rhode Island
- Social Security: Taxable Social Security is fully exempt only once you reach Social Security full retirement age and your federal AGI is under the limit: $107,000 (single, head of household or married filing separately) or $133,750 (joint) for tax year 2025. The limits rise with inflation each year, so 2026's will be slightly higher. It is all-or-nothing: $1 over the limit and the whole exemption is lost.
- Pensions: Since tax year 2025, up to $50,000 per person (up from $20,000) of pension, 401(k), 403(b), 457 and annuity income can be excluded. You must be at Social Security full retirement age (66 to 67 depending on birth year; 67 if born in 1960 or later) and under the same income limits as the Social Security exemption ($107,000 single / $133,750 joint for 2025). It is all-or-nothing, and one $50,000 limit covers pensions and 401(k) withdrawals together. Military retirement pay has been fully exempt since 2023, and government pensions follow the same rules as private ones.
- 401(k), 403(b) and IRA withdrawals: 401(k), 403(b) and governmental 457 withdrawals share the $50,000 pension exclusion, with the same full-retirement-age and income tests. Traditional IRA withdrawals don't qualify and are fully taxed.
- At 65 and older: Rhode Island has no extra standard deduction at 65.
Calculate your Rhode Island retirement taxes
State income tax in Rhode Island: $133 a year
In Rhode Island, the 401(k)/IRA amount counts as IRA withdrawals, which don't qualify for the pension exclusion. Enter withdrawals from employer plans such as a 401(k) or 403(b) as pension.
In Rhode Island you'd pay about $133 in state income tax and $4,336 in federal income tax on $70,000 of retirement income, keeping $65,531 (6.4% total).
Rhode Island ranks #21 of 51 for the lowest state tax on this income. 19 states charge no state income tax on this income.
What retirees pay in Rhode Island
| Retirement income | State tax (single) | State tax (married) | Federal tax (single) |
|---|---|---|---|
| $24,000 Social Security, $12,000 401(k)/IRA | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA | $133 | $0 | $4,336 |
| $40,000 Social Security, $40,000 pension, $50,000 401(k)/IRA, $10,000 other income | $4,763 | $3,982 | $19,812 |
Age 67 or older, 2026 rules including the federal senior deduction. For married couples, income is the household total and both spouses are 67 or older. State estimates apply Rhode Island's main exclusions and may differ for income-tested credits. The 401(k)/IRA amounts are treated as IRA withdrawals, which don't qualify for Rhode Island's pension exclusion; withdrawals from employer plans such as a 401(k) or 403(b) do. Enter those as pension in the calculator.
States with lower retirement taxes
Moving to Rhode Island in retirement?
Compare the tax on your Social Security, pension and 401(k)/IRA income, and typical living costs, with the state you'd leave. These are the states most households moving to Rhode Island come from (IRS migration data, 2022–2023).
- Massachusetts to Rhode Island
- New York to Rhode Island
- Connecticut to Rhode Island
- Florida to Rhode Island
- California to Rhode Island
- New Jersey to Rhode Island
Frequently asked questions
Does Rhode Island tax Social Security?
Partly taxed. Taxable Social Security is fully exempt only once you reach Social Security full retirement age and your federal AGI is under the limit: $107,000 (single, head of household or married filing separately) or $133,750 (joint) for tax year 2025. The limits rise with inflation each year, so 2026's will be slightly higher. It is all-or-nothing: $1 over the limit and the whole exemption is lost.
Does Rhode Island tax pensions?
Partly taxed. Since tax year 2025, up to $50,000 per person (up from $20,000) of pension, 401(k), 403(b), 457 and annuity income can be excluded. You must be at Social Security full retirement age (66 to 67 depending on birth year; 67 if born in 1960 or later) and under the same income limits as the Social Security exemption ($107,000 single / $133,750 joint for 2025). It is all-or-nothing, and one $50,000 limit covers pensions and 401(k) withdrawals together. Military retirement pay has been fully exempt since 2023, and government pensions follow the same rules as private ones.
Does Rhode Island tax 401(k) and IRA withdrawals?
Partly taxed. 401(k), 403(b) and governmental 457 withdrawals share the $50,000 pension exclusion, with the same full-retirement-age and income tests. Traditional IRA withdrawals don't qualify and are fully taxed.
Is Rhode Island a good state to retire for taxes?
For a single retiree with $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA, Rhode Island charges about $133 in state income tax, ranking #21 of 51 (lowest tax first).
Related
Sources: tax.ri.gov, tax.ri.gov (2), tax.ri.gov (3). Rules reviewed . Some 2026 amounts were not yet published or sources differed; confirm with the state revenue department.