Updated October 29, 2026. Quick answer: Partly. Schedule M line 1t of the 2025 RI-1040 instructions is a “Modification up to $50,000 for taxable retirement income from” certain pension plans, open to a filer at Social Security full retirement age who was born on or before March 1, 1959, with federal adjusted gross income of $107,000 or less for a single filer.
What Rhode Island does with a FERS or CSRS annuity
| Question | What the Rhode Island documents say |
|---|---|
| What the source says | Rhode Island treats taxable federal civil service pension income (CSRS and FERS) as pension and annuity income eligible for a capped state subtraction, not a full exemption, for retirees who meet the age and income tests. |
| Amount or limit | Subtract up to $50,000 of taxable pension and annuity income included in federal adjusted gross income, applied individually to the taxpayer born on or before March 1, 1959 (Schedule M line 1t). |
| Age or other test | Must have reached the Social Security full retirement age; the 2025 instructions also require being born on or before March 1, 1959, and federal AGI of $107,000 or less for single, married separate and head of household filers, or $133,750 or less for married joint and qualifying widow(er) filers. |
| Change for 2026 | No 2026 change is printed in the state documents cited here. |
In the Rhode Island documents’ own words
- “born on or before March 1, 1959” (2025 RI-1040 Resident booklet instructions (Schedule M line 1t))
- “taxable pension and/or annuity income that is included in federal” (R.I. Gen. Laws 44-30-12 Rhode Island income of a resident individual)
How this differs from other pensions in Rhode Island
The same capped modification applies to private-sector, state government and local government pensions as to CSRS and FERS annuities, per the Division of Taxation guide, so federal pensions get no special exemption beyond the shared cap. Military service pensions are carved out onto a separate line. See also Does Rhode Island tax pensions? and military retirement pay.
FERS, CSRS and your TSP
The Division of Taxation guide lists the Federal Thrift Savings Plan (TSP) among sources eligible for the same pension and annuity modification, while the instructions say the amount should not include IRAs on line 4b. For the Thrift Savings Plan itself, see state tax on TSP withdrawals and the TSP calculator.
Where this rule sits on the Rhode Island return
The modification is Schedule M line 1t, authorized by R.I. Gen. Laws 44-30-12(c)(9) according to the instructions.
Checks before you rely on this answer
- Check the birth date test first, because only retirement income of the taxpayer born on or before March 1, 1959 qualifies.
- Check federal adjusted gross income against the limit for your filing status.
- Leave IRA distributions out of the amount, as the instructions say.
What the Rhode Island documents leave open
The Division of Taxation retirement guide read here is the tax year 2024 edition, so it supports which plans qualify while the 2025 instructions and the statute carry the figures. The statute says the amount is adjusted for inflation each year, the rate schedule was not read, and no 2026 booklet exists yet.
Common mistakes
- Taking the subtraction above the income limit. The instructions cap federal adjusted gross income at $107,000 for single filers and $133,750 for joint filers.
- Including IRA amounts. The instructions say the amount should not include IRAs reported on line 4b.
Related: Does Rhode Island tax pensions?, Rhode Island military retirement pay, Rhode Island retirement deduction line by line, and FERS, TSP and Social Security sequencing.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Compare adviser services and total fees
For U.S. investors with $250,000 or more in investable assets. WiserAdvisor is an independent service matching you with 2 to 3 vetted advisers. Its form asks for your ZIP code and answers to a few questions; a match is not guaranteed.
Free to request, with no obligation to hire. By submitting, you consent to calls, texts and emails from WiserAdvisor and up to three advisers. Advisers pay for introductions.
Clear Money Guide may earn a referral payment for a qualifying completed form. An introduction is not a Clear Money Guide recommendation.
Opens on WiserAdvisor’s site in a new tab.
Explore optional adviser matching
Considering financial advice? Request an adviser introduction with no obligation to hire.
The form is run by Kapitalwise, our advisor-matching partner. Requesting an introduction is free. Submitting the form shares your contact details with advisers, so expect calls and texts. Advisers pay for introductions. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you hire anyone. A match is not guaranteed.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- 2025 RI-1040 Resident booklet instructions (Schedule M line 1t): https://tax.ri.gov/sites/g/files/xkgbur541/files/2025-12/2025%201040R%20Instructions%20122025.pdf
- R.I. Gen. Laws 44-30-12 Rhode Island income of a resident individual: https://webserver.rilegislature.gov/Statutes/TITLE44/44-30/44-II/44-30-12.htm
- Rhode Island Retirement Income Tax Guide (Publication 2025-01, applies to Tax Year 2024): https://tax.ri.gov/sites/g/files/xkgbur541/files/2025-01/PUB_2025-01_Retirement_Income_Guide.pdf
Read from the state documents linked above on October 29, 2026. General information, not tax advice.