Updated September 5, 2026. Quick answer: Rhode Island generally taxes pensions, 401(k), and 403(b) income, but lets qualifying retirees at full Social Security retirement age exclude up to $50,000 of that income for tax year 2025 if federal AGI is under about $107,000 (single) or $133,500 (joint). Military retired pay is treated separately and is fully exempt with no age or income limit, and traditional or Roth IRA distributions do not qualify for the general modification at all.
More state retirement-income schedules, line by line: Rhode Island Schedule M.
Inherited an IRA? What the state’s own documents say about taxing those withdrawals: Rhode Island tax on inherited IRA withdrawals.
Hold a 403(b) or 457(b)? What the state’s own documents say about taxing those withdrawals: does Rhode Island tax 403(b) and 457(b) withdrawals.
Married, or planning for a spouse’s death? Whether the state is a community property state, from its own statutes: Is Rhode Island a community property state?.
Selling your home? How the state taxes the profit, from its own tax documents: Does Rhode Island tax the profit from selling your home?.
The state’s income tax schedule: the Rhode Island tax brackets for 2026.
Trusts have their own page: does Rhode Island tax trust income.
Dividends and interest have their own page: does Rhode Island tax dividends and interest.
Annuity payments have their own page: does Rhode Island tax annuity income.
Military retired pay has its own page: does Rhode Island tax military retirement.
Saving for a child’s college? The state’s 529 break has its own page: Rhode Island 529 plan tax deduction.
Selling stocks, funds or real estate has its own page: does Rhode Island tax capital gains.
Withdrawals from a 401(k) or IRA have their own page: does Rhode Island tax 401(k) and IRA withdrawals.
The ERSRI optional benefits, refund and COLA rules, from the Rhode Island General Laws: Rhode Island ERSRI retirement decisions.
More on Rhode Island: Intestate Succession in Rhode Island.
Related state retirement tax guides: Does Rhode Island Tax Social Security? and Rhode Island to New Hampshire Retirement Taxes.
Confidence note: high. This page is scoped to pension, IRA and 401(k) taxation specifically. For the state’s full retirement-tax picture (Social Security, tax rates, estate and probate), see how Rhode Island taxes retirement income generally.
Pending, not current law: A bill introduced in the Rhode Island legislature (H5761) would remove the dollar cap from the Pension and Annuity Income Modification for tax years beginning in 2026 while keeping the full retirement age and federal AGI conditions. It was introduced February 26, 2025 and referred to House Finance. The General Assembly posted text of R.I. Gen. Laws sec. 44-30-12, read September 30, 2026, still shows the $50,000 cap for tax years beginning on or after January 1, 2025 and no such change, so the $50,000 version above is treated as current law.
How pensions and retirement-account withdrawals are taxed
| Public (state/local government) pensions | Rhode Island, other state, and local government pensions are included in federal adjusted gross income and are taxable, but can qualify for the Pension and Annuity Income Modification if the recipient meets the age and income requirements. |
|---|---|
| Private (employer) pensions | Private sector pensions are taxable but can qualify for the same Pension and Annuity Income Modification as public pensions if the recipient meets the age and income requirements. |
| Federal government pensions (FERS/CSRS) | Federal government pensions and federal Thrift Savings Plan distributions are taxable but are listed as qualifying income types for the Pension and Annuity Income Modification if the recipient meets the age and income requirements. |
| Military retirement pay | Rhode Island fully exempts military service pension income, including pension benefits received by a surviving spouse on behalf of a spouse who served, under R.I. Gen. Laws sec. 44-30-12(c)(11), effective for tax years beginning January 1, 2023, with no age or income limit. This Military Service Pension Modification cannot be combined with the general Pension and Annuity Income Modification for the same income. |
| IRA and 401(k)/403(b) distributions | 401(k) and 403(b) plan distributions can qualify for the Pension and Annuity Income Modification. Traditional IRA, Roth IRA, and SEP-IRA distributions do not qualify for this modification and are fully taxable. |
| General retirement-income exclusion | Rhode Island’s Pension and Annuity Income Modification lets a qualifying taxpayer who has reached full Social Security retirement age subtract taxable pension, 401(k), 403(b), and annuity income from federal AGI, up to $50,000 for tax year 2025 (up from $20,000 in 2023 and 2024), provided federal AGI is below an inflation-adjusted ceiling reported as $107,000 for single filers and $133,500 for joint filers in 2025, per the Division of Taxation’s own Pub. 2026-01 Retirement Income Guide (dated February 2026); an earlier Advisory 2025-22 (November 2025) had stated the joint threshold as $133,750, but the later, retirement-specific guide is treated as the authoritative current figure since it postdates and specifically covers this modification. |
Optional next step
Want help with your retirement plan?
Request an adviser match to discuss how this fits your retirement withdrawals.
- No fee to request a match
- No obligation to hire
Expect questions about your situation, your name, email and phone, and phone verification by text. A match is not guaranteed.
The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide is paid when you submit the form, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
Opens here. Nothing loads and nothing reaches Kapitalwise until you press the button.
How our partner relationships workSocial Security
Rhode Island has a separate Social Security modification with its own age and income rules; consult the sibling Social Security page for details rather than assuming it follows the pension modification’s numbers. Social Security has its own rules in every state; see the full breakdown in how Rhode Island taxes retirement income generally.
Figures verified against the Rhode Island Division of Taxation Retirement Income Tax Guide (Pub. 2026-01), Advisory 2025-22, Advisory 2022-19, the Rhode Island General Assembly text of R.I. Gen. Laws sec. 44-30-12 and the introduced text of H 5761 on September 30, 2026; no 2026 tax year threshold was published in those sources.
Statute and sources
Governing citation: R.I. Gen. Laws sec. 44-30-12.
- Rhode Island Division of Taxation, Retirement Income Tax Guide (Pub. 2026-01)
- Rhode Island Division of Taxation, Advisory 2025-22, Inflation Adjustments
- Rhode Island Division of Taxation, Advisory 2022-19, Pension and Annuity Income Modification changes
Read September 5, 2026.
Related: how Rhode Island taxes retirement income generally · does Rhode Island tax Roth conversions? · Roth conversion taxes, all 51 jurisdictions.
General information drawn from each state’s own published statutes and revenue-department guidance, not legal, tax or financial advice. Figures and exemption amounts are current as of the date in the quick answer, are set by state law, and can change by future legislation; any pending bill named on this page is not yet law. This page cannot see your own return, which governs. We are not a law firm, a tax adviser, or a fiduciary, and this is not personalized advice.