Report: R.I. third-worst state in nation for retiree tax-friendliness

RHODE ISLAND is the third-worst state in the nation for retirees when it comes to tax friendliness, according to kiplinger.com. / COURTESY KIPLINGER.COM
RHODE ISLAND is the third-worst state in the nation for retirees when it comes to tax friendliness, according to kiplinger.com. / COURTESY KIPLINGER.COM

PROVIDENCE – At least Rhode Island is no longer the least tax-friendly state for retirees in the nation.
It’s now third worst.
The rankings are part of the new 2015 Retiree Tax Map, which compares taxes on retirees across all 50 states, by Kiplinger, which specializes in personal finance and business forecasting.
The least tax-friendly state for retirees is Vermont, followed by Connecticut, while the most tax-friendly state for retirees is Alaska.
Kiplinger said Rhode Island became a “little less unfriendly” this year after lawmakers approved a budget exempting Social Security benefits from state taxes for single filers with up to $80,000 in adjusted gross income and married filers with up to $100,000 starting in 2016.

“Still, Rhode Island taxes most other sources of retirement income, including pension income,” Kiplinger stated.
Kiplinger also said that the median property tax on the state’s median home value of $232,300 is $3,872 – 10th highest in the U.S., according to the Tax Foundation. And, it makes mention of Rhode Island’s 7 percent sales tax, as well as its state income tax of 3.75 percent on income up to $60,550 and 5.99 percent on income more than $137,650.
Kiplinger’s list is based on its analysis of state tax laws, state department Web sites and the Tax Foundation.

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