Bill > S0245

This bill modifies Rhode Island's personal income tax law to allow a full subtraction of Social Security income from federal adjusted gross income for all taxpayers starting in tax years beginning on or after January 1, 2026. Currently, the state only allows a partial subtraction of Social Security income for taxpayers who are of retirement age and meet specific income thresholds (less than $80,000 for single filers or $100,000 for joint filers). The new provision eliminates these income restrictions, meaning all Rhode Island taxpayers, regardless of their income level or filing status, will be able to subtract their entire Social Security income from their federal adjusted gross income when calculating their state tax liability. This change represents a significant tax benefit for Rhode Island residents, potentially reducing their state tax burden by allowing them to exclude all Social Security income from taxation. The bill is straightforward and will take effect immediately upon passage.

Budget and Finance

https://status.rilegislature.gov/