Military retirement pay in Rhode Island
Varies
Does Rhode Island Tax Military Retirement Pay?
Short answer: No. Rhode Island fully exempts military service pensions from state income tax for tax years starting in 2023, with no age or income limits. Surviving spouses receiving military pension benefits also qualify. The exemption covers armed forces retirees; MOAA notes that other uniformed services (USPHS and NOAA) are not covered. Other retirement income: Taxpayers who have reached full Social Security retirement age may exclude up to $50,000 per person of pensions, 401(k), 403(b), annuities, and government pensions, if federal AGI is at or below $107,000 single / $133,500 joint (2025 thresholds). IRA distributions do not qualify.
Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Military retirement pay in Rhode Island
Varies
Individuals / Personal Taxes
No. Rhode Island fully exempts military service pensions from state income tax for tax years starting in 2023, with no age or income limits. Surviving spouses receiving military pension benefits also qualify. The exemption covers armed forces retirees; MOAA notes that other uniformed services (USPHS and NOAA) are not covered. Other retirement income: Taxpayers who have reached full Social Security retirement age may exclude up to $50,000 per person of pensions, 401(k), 403(b), annuities, and government pensions, if federal AGI is at or below $107,000 single / $133,500 joint (2025 thresholds). IRA distributions do not qualify.
Business justification
No. Rhode Island fully exempts military service pensions from state income tax for tax years starting in 2023, with no age or income limits. Surviving spouses receiving military pension benefits also qualify. The exemption covers armed forces retirees; MOAA notes that other uniformed services (USPHS and NOAA) are not covered. Other retirement income: Taxpayers who have reached full Social Security retirement age may exclude up to $50,000 per person of pensions, 401(k), 403(b), annuities, and government pensions, if federal AGI is at or below $107,000 single / $133,500 joint (2025 thresholds). IRA distributions do not qualify. Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions