Bill > H5761

This bill modifies Rhode Island's personal income tax law by expanding the tax deduction for pension and annuity income. Specifically, for tax years beginning on or after January 1, 2026, the bill allows taxpayers to deduct all of their taxable pension and/or annuity income that is included in their federal adjusted gross income, removing previous limits of $15,000, $20,000, or $50,000 that were in place for earlier tax years. The deduction previously applied only to taxpayers who had reached full Social Security retirement age and had federal adjusted gross income below certain thresholds, but the new provision removes those income restrictions. This change means that all Rhode Island residents, regardless of their age or income level, will be able to fully deduct their pension and annuity income from state taxes starting in 2026, potentially providing significant tax relief for retirees and those with retirement income. The bill takes effect immediately upon passage.