Does Rhode Island Tax Social Security?

Rhode Island is a well-liked retirement location because of its stunning natural surroundings and lengthy coastline. However, people thinking about moving to the Ocean State might be concerned about paying taxes on their Social Security payments. Both yes and no are the responses.

One of the thirteen states that tax Social Security benefits is Rhode Island. For people with a modified adjusted gross income (MAGI) below a specific limit, the state does offer an exemption, nonetheless. The exemption for single filers starts to phase down at $80,000 MAGI and is completely phased out at $100,000 MAGI. The exemption phase-out for married couples filing jointly starts at $100,000 MAGI and ends at $150,000 MAGI.

The state of Rhode Island offers some benefits to retirees despite the possibility of Social Security income being taxed. For instance, the state’s relatively low property tax rate can be used to partially offset the Social Security benefits tax. Additionally, when compared to neighboring Northeastern states like Massachusetts and Connecticut, Rhode Island’s cost of living is very cheap. Speaking of Massachusetts, it’s important to note that no taxes are levied on Social Security income there. With a state income tax rate of 5.05% as opposed to Rhode Island’s 4.25%, Massachusetts does, however, have a larger overall tax burden than Rhode Island. In addition, Massachusetts’ 6.25% sales tax rate is greater than Rhode Island’s 7%.

Yes, shoes are subject to sales tax in Rhode Island. All tangible personal property, including clothing and footwear, are subject to a 7% state sales tax; however, during the state’s annual sales tax holiday in August, purchases of up to $250 in clothing and footwear are exempt.

So, what does a good wage in Rhode Island look like? Rhode Island’s median household income, as reported by the U.S. Bureau of Labor Statistics, is $63,870. However, this is highly variable and depends on things like geography, profession, and amount of schooling. In Rhode Island, a salary of $75,000 or more is typically regarded as a respectable pay.

In conclusion, Rhode Island taxes Social Security benefits but exempts recipients who earn less than a specific MAGI limit. In comparison to other Northeastern states, the state has a comparatively cheap cost of living and a low property tax rate, although it has a higher sales tax rate. Depending on a number of variables, a decent wage in Rhode Island might range, however $75,000 or more can be regarded as a solid benchmark.