Rhode Island tax deductions and write-offs (2026)

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.

Partly. 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. The income thresholds are indexed annually;.

Partly. Taxable Social Security is exempt only if the taxpayer has reached full retirement age and federal AGI is below an inflation-indexed threshold ($107,000 single/head of household/married filing separately and $133,750 married filing jointly for 2025). Otherwise, the federally taxable portion is taxed. The 2026 indexed thresholds had not been published when checked, so the 2025 figures are shown. Rhode Island's 2026 retirement guide lists $133,500 for joint filers, but the 2025 advisory and worksheet say $133,750. The FY2027 budget removes the full-retirement-age requirement starting in tax year 2027; the income limit stays.

Yes: Rhode Island offers the Rhode Island Earned Income Credit, 16% of the federal EITC (refundable). Fully refundable; follows federal eligibility rules and income limits. Rate has been 16% since tax year 2024.

Only instead of income tax: itemizers in Rhode Island pick sales tax (7% state rate, about 7% with local taxes) or state income tax, whichever is bigger. Clothing and footwear are exempt up to $250 per item, with tax due only on the amount above $250; no local sales taxes.

Yes: Rhode Island offers the Property Tax Relief Credit (RI-1040H). Refundable credit for older and disabled renters where 20% of rent counts as property tax, up to $700 (2025); claimed on Form RI-1040H, either with the RI-1040 or on its own. Age 65+ and/or disabled; Rhode Island resident all year; household income of $40,730 or less; must be current on rent.

Yes on your federal return if you itemize, within the $40,400 SALT cap. Rhode Island adds its own break: property tax relief credit (RI-1040H) up to $700 for 2025 for owners or renters 65+ or disabled.

No: Rhode Island doesn't base registration on your car's value, so it isn't deductible as personal property tax. The car tax was repealed for FY2023 statewide (East Providence followed July 1, 2023); no new excise bills are issued.

Rhode Island taxes income up to 5.99% and exempts some Social Security and pension income for residents at full retirement age.

Yes on your Rhode Island return: $500 single / $1,000 joint per return. Only contributions to the state's own plan count. CollegeBound plans only; only account-owner contributions count; rollovers from other 529 plans are not deductible.

No state child tax credit, but Rhode Island has a child care credit: 25% of the federal child and dependent care credit. Nonrefundable. A new refundable Child Tax Credit of $330 per child age 18 and under starts with tax year 2027, not 2026 (FY2027 budget, H 7127). It phases out above $88,500 AGI ($110,640 joint) and will be inflation-indexed (per the RI Division of Taxation's 2026 summary of legislative changes). Dependent exemption is $5,100 (2025), phased out at high incomes. Rhode Island does have an earned income credit: 16% of the federal EITC.

Yes, as a business expense: Rhode Island charges $150 to form an LLC; ongoing: $50 annual report. $400 annual charge (filed on Form RI-1065). Annual report due Feb 1-May 1. $400 annual charge due March 15 for calendar-year filers; not prorated.