Rhode Island State Taxes: What You’ll Owe In The 2026 Tax Season

Are Social Security benefits taxed?

If your income is under a certain level and you are at full retirement age, Social Security benefits will not be taxed by the state. Full retirement age is defined by the IRS as the age when taxpayers can receive 100 percent of your Social Security benefits. The income cutoffs are $107,000 for single or head of household filers; $133,500 for those married and filing jointly or qualifying widowed people; and $107,000 for those married and filing separately.

How is property taxed?

The average statewide property tax was 1.12 percent of a home’s assessed value in 2024, according to the Tax Foundation. Actual rates vary by county, ranging from the lowest rate of 0.86 percent in Newport County to 1.37 percent in Kent County. The lowest median property tax paid was $4,683 in Providence County, while the highest was $6,648 in Bristol County.

What about sales and other taxes?

• Sales tax: The state has a 7 percent sales tax and doesn’t allow local municipalities to impose their own sales taxes. Exemptions to the sales tax include newspapers, most food grocery items, medication and medical devices, and coffins, caskets and urns. A full list is available here.
• Gas and diesel: Motor fuel is taxed at 40 cents per gallon in Rhode Island.
• Vehicle tax: Vehicle purchases are subject to the state’s 7 percent sales tax.
• Alcohol: Alcohol sales are subject to 7 percent sales tax, and when purchased in restaurants or bars, there is an additional 1 percent local tax on meals and beverages.
• Lottery: Rhode Island withholds 24 percent in federal taxes and 5.99 percent in state taxes on lottery winnings of $5,000 or more, with the final taxes paid based on total income for the year, including lottery winnings.

Will my heirs or estate have to pay inheritance and estate tax?

The state has an estate tax. For decedents who died on or after Jan. 1, 2025, the tax is due on estates valued at more than $1,802,431. For decedents who died after Jan. 1, 2026, the tax is due on estates valued at more than $1,838,056. The state has a complex system for calculating what estate tax is due. More information is available here.

Are there any tax breaks for older residents?

• Pension and annuity modification: In 2025, qualified single filers can subtract up to $50,000 from their pension and annuity income, and those married and filing jointly can subtract up to $100,000. To be eligible, taxpayers must have a federal adjusted gross income that includes funds from pensions, 401(k) plans, annuities, or other similar sources, but IRA accounts are not eligible. They must also have reached full retirement age, as defined by the IRS, and have income at or below the following thresholds: $107,000 for single filers, $133,750 for those married and filing jointly, or $107,000 for those married and filing separately.
• Property tax relief “circuit-breaker” program: This program provides a refundable tax credit to eligible homeowners and renters on their Rhode Island personal income tax for property taxes paid. The credit is the property tax liability in excess of a percentage of the taxpayer’s income. The maximum credit is $700 for 2025 and is adjusted annually based on the consumer price index for all urban consumers. For renters, property taxes are assumed to be 20 percent of rent, excluding utilities. To be eligible, applicants must have lived in Rhode Island for all of 2025; their total household income can’t exceed $40,730; they must have been 65 or older by the end of the prior year or be totally disabled. If renting, they must have rented the property for the entire year; they must be current on property tax and rent payments.

Are military retirement pensions taxed?

No, military pensions are eligible for a full reduction in state income taxes.

What is the deadline for filing taxes in 2026?

The tax deadline was April 15, 2026. Residents who filed for a state extension to Oct. 15 still needed to pay taxes due by the April 15 deadline. Filing for a federal extension does not automatically give residents a state extension; they must file for one separately.

More AARP Financial Resources

• AARP Retirement Calculator Determine if you are saving enough to retire when — and how — you want.
• AARP Social Security Calculator Figure out when to claim and how to maximize your Social Security benefits.
• AARP Tax Tools Explore resources to help you calculate and prepare taxes.