
6. Rhode Island: Raising the Bar on Pension Deductions
Rhode Island continues adjusting its retirement tax system to protect middle-income seniors. State law provides income-limited deductions for qualifying public and private pensions alongside military retirement exemptions.
Advocates are actively lobbying the General Assembly to raise these income thresholds. Higher limits would prevent annual cost-of-living adjustments from pushing retirees into taxable territory.
You can verify current income cutoffs on the Rhode Island Division of Taxation website. If your income falls below the statutory threshold, your qualifying pension payments remain tax-free.
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