Active-duty pay
Taxed
Active-duty pay taxable; combat zone exempt.
State Guide · RI
Rhode Island — Military Tax Treatment
Rhode Island's military retirement exemption is income-tested and age-gated — not everyone qualifies. Verify your specific situation with RI Division of Taxation each year.
Tax treatment at a glance
Guard & Reserve drill pay
Taxed
Guard and Reserve drill pay is taxable Rhode Island income.
Military retirement pay
Fully Exempt
Military retirement pay (and SBP annuities) is fully exempt from Rhode Island income tax, effective 2023 — no age requirement, no income limit.
The numbers · verified for tax year 2025
Top marginal rate
5.99%
Retirement-pay exemption
Full
Rhode Island fully exempts military retired pay (and SBP annuities) from state income tax, effective Jan 1, 2023 — no age requirement, no income limit, no phase-out.
Standard deduction
For 2025 the standard deduction is $10,900 single / $21,800 married filing jointly (phases out above ~$246,000 AGI). Three brackets top out at 5.99%.
VA disability compensation
Always tax-free
Federally tax-free under 38 USC § 5301. No state taxes VA disability compensation as income — Rhode Island included.
Survivor Benefit Plan (SBP)
Follows retirement
SBP annuity treatment follows the same complex retirement income rules. Verify with Rhode Island DoT.
Federal rules that override state law
SCRA — Servicemembers Civil Relief Act
Active-duty servicemembers pay state income tax only to their state of legal domicile — not the state where they are stationed. If you are from Texas and stationed in Rhode Island, Rhode Island cannot tax your military pay. This applies during all active duty periods and during Guard/Reserve mobilizations on federal (Title 10) orders.
MSRRA — Military Spouses Residency Relief Act
Military spouses can maintain their home-state domicile even when living in a different state due to their servicemember's orders. A spouse who is a Texas resident following their servicemember to Rhode Island can keep Texas as their tax domicile and avoid Rhode Island state income tax on their wages.
Guard & Reserve — the SCRA gap
SCRA pay protections apply during federal (Title 10) activation orders. During routine drill weekends and state-only activations, Guard and Reserve members are state residents serving in their home state — SCRA does not protect their drill pay from state income tax. Whether Rhode Island exempts that pay is the state-specific question answered above.
Filing watch-outs
- 01RI Schedule M for pension modification
- 02Income limits apply — higher earners may not qualify for any exemption
- 03Rules can change — verify with RI DoR annually
Veteran-specific tax benefits
Disabled veteran property tax exemption.
Official authority
https://tax.ri.gov/ ↗State tax law changes annually. Verify current rules with the Rhode Island Department of Revenue before making any tax decision.
Rhode Island military tax — common questions
Does Rhode Island tax military retirement pay in 2026?
Rhode Island fully exempts military retirement pay. Military retirement pay (and SBP annuities) is fully exempt from Rhode Island income tax, effective 2023 — no age requirement, no income limit.
Does Rhode Island tax active-duty military pay?
Rhode Island taxes active-duty military pay for state residents. Active-duty pay taxable; combat zone exempt. Under the SCRA, Rhode Island can only tax the military pay of service members who are legally domiciled in Rhode Island — not those merely stationed there.
Does Rhode Island tax National Guard and Reserve drill pay?
Rhode Island taxes Guard and Reserve drill pay. Guard and Reserve drill pay is taxable Rhode Island income.
Is VA disability compensation taxed in Rhode Island?
No. VA disability compensation is federally tax-free under 38 U.S.C. § 5301, and no state — including Rhode Island — taxes it as income.
If I'm stationed in Rhode Island but claim another state, can Rhode Island tax my military pay?
No. Under the Servicemembers Civil Relief Act (SCRA), active-duty pay is taxable only by your state of legal domicile, not the state where you are stationed. If your domicile is elsewhere, Rhode Island cannot tax your active-duty military pay. Military spouses get the same protection under the MSRRA.
Related tools
Other state guides