Updated October 5, 2026. Quick answer: Yes, with an exemption for many filers. For 2025 “Rhode Island tax law allows up to $50,000 of qualifying” pension and annuity income to be exempt for a filer at full retirement age whose federal adjusted gross income is $107,000 or less ($133,500 joint).
More state retirement-income schedules, line by line: Rhode Island Schedule M.
How Rhode Island treats annuity income
| Item | What the documents say |
|---|---|
| Treatment | Taxed; up to $50,000 of pension and annuity income exempt for qualifying filers |
| 2025 rates | 3.75% up to $79,900, 4.75% to $181,650 and 5.99% above, for all filing statuses |
| The exemption | “taxable pension and/or annuity income includible in federal adjusted gross income” |
| Requirements | The filer must have reached the Social Security full retirement age, with federal adjusted gross income of $107,000 or less (single) or $133,500 or less (joint) |
| Annuities | The guide lists Annuities and “Life insurance annuity contracts” as income that may qualify |
| IRAs | Income from IRAs “does not qualify for purposes of the Rhode Island Pension and” |
A $24,000 example
A filer at full retirement age with $24,000 of annuity income and adjusted gross income under $107,000 exempts all of it, because the cap is $50,000, so it adds $0.
A single filer with adjusted gross income over $107,000 gets no exemption; if the $24,000 falls wholly in the 4.75% bracket the tax is $1,140, computed as $24,000 x 4.75%.
What changes in 2026
The latest documents read print no 2026 change to the way annuity income is taxed.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal side in Topic no. 410, Pensions and Annuities and Publication 575, Pension and Annuity Income.
Related: whether Rhode Island taxes pensions, how Rhode Island taxes retirement income, state tax on 401(k) and IRA withdrawals, how a surrendered annuity is taxed, and pension and annuity decisions.
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Answer againSources
- Retirement Income Guide, PUB 2026-01 (Rhode Island Division of Taxation): https://tax.ri.gov/sites/g/files/xkgbur541/files/2026-02/PUB_2026-01_Retirement_Income_Guide.pdf
- R.I. Gen. Laws 44-30-12 (Rhode Island General Assembly): https://webserver.rilegislature.gov/Statutes/TITLE44/44-30/44-II/44-30-12.htm
- 2025 Rhode Island Tax Tables and Rate Schedule (Rhode Island Division of Taxation): https://tax.ri.gov/sites/g/files/xkgbur541/files/2025-10/2025 RI Tax Tables_Full_d.pdf
Sources: the primary documents linked above, read on October 5, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.