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Rhode Island is one of only 8 states that tax hard-earned Social Security benefits. Rhode Island's state income tax on these benefits undermines the purpose of Social Security, which was designed to lift older adults out of poverty – not to fund state government.
AARP Rhode Island is taking action, fighting for you on Smith Hill. And you can make your voice heard.
Sign the petition: We DEMAND that Rhode Island joins the 42 other states that have eliminated state taxes on Social Security!
The Truth About Rhode Island’s Tax on Social Security Income
By Catherine Taylor
AARP’s mission is to empower people to choose how we live as we age. Financial security makes that choice possible. That is why ensuring that older Rhode Islanders have full access to the Social Security they paid into is AARP Rhode Island’s top legislative priority in 2026.
Eliminating the tax on Social Security payments, which is included in the governor’s current proposed budget, is only fair. Social Security was designed to lift older adults out of poverty – not fund state government. And yet Rhode Island is one of only eight states that still tax hard-earned Social Security payments. Forty-two other states are able to balance their budgets without taking money from retirees’ Social Security checks. West Virginia is the most recent state to phase out the tax completely.
Rhode Island state lawmakers must take the necessary action to eliminate the tax.
Who Really Pays This Tax?
Some argue that eliminating this unfair tax only helps the wealthy. The data tell a different story.
Rhode Island offers a tax exemption, but only if three requirements are met: the taxpayer must be 67 or older, some portion of their Social Security must be federally taxable, and their total income from all sources must fall below $107,000 for single filers or $133,750 for joint filers.
Here’s the problem: 63% of Americans claim Social Security before age 67, according to the Social Security Administration. Research shows early claiming strongly correlates with unemployment, low wealth, work-limiting health conditions and physically demanding jobs. These are people who need every dollar of their Social Security to get by – and they get no exemption from Rhode Island’s income tax on those payments until they turn 67, regardless of income.
In 2022, 91,020 Rhode Islanders paid state income tax on their Social Security. Only 9% had incomes over $200,000. Two-thirds earned less than $100,000. According to a study conducted by Smart Asset, Rhode Island's middle-class income range is $56,642 to $169,944, meaning this tax hits middle-class retirees hardest, along with those forced to claim their Social Security early due to job loss or health issues.
Rhode Islanders Want This Tax Gone
In AARP Rhode Island’s 2023 Vital Voices survey of Rhode Islanders 45+, 89% agreed that “Rhode Island lawmakers should repeal the state tax on Social Security.” This sentiment is consistent regardless of age, gender, or political party.
The Bottom Line
The state currently collects over $40 million annually by taxing older Rhode Islanders’ hard-earned Social Security. With so many Americans struggling to afford health care and other basic needs, the promise of Social Security is more important than ever.
AARP Rhode Island will never stop fighting to protect Social Security and ensure hard-working Rhode Islanders get the Social Security they have earned. It’s time to eliminate this unfair tax.
Sign the petition: We DEMAND that Rhode Island joins the 42 other states that have eliminated state taxes on Social Security!
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