R.I. Budget Includes New Tax Exemption for Retirees
July 5, 2016: Rhode Island’s 2017 fiscal year budget, which took effect on July 1, 2016, includes a new tax exemption for qualified retirees.
The first $15,000 of retirement income will be exempt from state personal income tax for retirees who have reached full social security retirement age and have a gross income of $80,000 or less for single filers, or $100,000 in gross income for joint filers.
In the 2016 budget, the Rhode Island General Assembly passed a similar initiative that provided a tax exemption only for Social Security benefits. This year’s budget also includes an exemption for other types of retirement income, including public and private pensions.
The exemption is now expected to provide over $6 million in tax relief in 2017 and nearly $14 million in tax relief in 2018, reducing the tax burden for over 60,000 Rhode Island taxpayers.
On behalf of the members of the Employees’ Retirement System of Rhode Island, Treasurer Magaziner commends House Speaker Mattiello, Senate President Paiva Weed and the members of the General Assembly for their leadership on this initiative.
You can read more about Rhode Island’s 2017 budget here.
DISCLAIMER: This information is not intended to provide legal or accounting advice. Please consult a tax advisor for information on your specific situation.