Rhode Island collects over $40 million annually by taxing older Rhode Islanders’ Social Security income. But most other states don’t tax Social Security. (Courtesy of AARP Rhode Island)
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 — included in Gov. Dan McKee proposed fiscal year 2027 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…