Bill > H5758

This bill modifies Rhode Island's personal income tax law by adding a provision that allows all taxable Social Security income to be subtracted from federal adjusted gross income for tax years beginning on or after January 1, 2026. Previously, the state only allowed Social Security income to be subtracted for individuals over a certain age with federal adjusted gross income below specific thresholds ($80,000 for single filers and $100,000 for joint filers). The new provision eliminates these income limitations and age restrictions, effectively making all Social Security benefits exempt from state income tax calculations starting in 2026. This change will potentially reduce the state income tax burden for Rhode Island residents who receive Social Security benefits, providing a broader tax benefit compared to the current more restrictive approach. The bill is straightforward, with Section 2 specifying that the act takes effect immediately upon passage, and it represents a significant expansion of tax relief for Social Security recipients in Rhode Island.

Budget and Finance

https://status.rilegislature.gov/