Military Service Pensions — Fully Exempt From Tax Year 2023
For tax years beginning 1 January 2023, military service pensions are exempt from state personal income tax — the full amount included in federal AGI is subtracted, with no cap and no age gate. The same pension cannot also be counted toward the separate $20,000 general pension modification.
Verified August 20, 2026
What this benefit is
For tax years beginning 1 January 2023, military service pensions are exempt from state personal income tax — the full amount included in federal AGI is subtracted, with no cap and no age gate. The same pension cannot also be counted toward the separate $20,000 general pension modification.
What it's worth: 100% of military service pension benefits subtracted from federal AGI
- The saving is your marginal state rate on the amount subtracted, so it depends on your bracket.
Who is entitled to it
- You receive military retired pay.
- Your home is in this state.
Not sure whether that describes you?
Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.
How to claim it
Deadline: With your return- 1Subtract the military service pension benefits included in your federal AGI as a modification — subsection 11 of §44-30-12(c), effective for tax years beginning 1 January 2023.
- 2Do not also count the military pension toward the general pension-and-annuity modification (raised to $20,000 per person, $40,000 joint, the same year) — the Division is explicit that income cannot be deducted twice.
- 3Both modifications can be claimed in the same year, on different income: the military pension under its own subsection, other retirement income under the general one.
- Form
- Schedule M modification on the resident return
- File with
- Division of Taxation, with your annual return
- Annual
- Claimed once a year.
Sources
- authority · published policyDivision of Taxation — ADV 2022-19, "Retirement income changes on the horizon" (R.I. Gen. Laws §44-30-12(c)(11))
Why only one source type: The Division's own advisory states the exemption, the effective year, the statute subsection and the anti-double-dip rule in terms; the statute server itself refuses connections.
This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.