AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX

HB 7162 would modify Rhode Island's personal income tax calculation by allowing the exclusion of public pension benefits administered by the Employees Retirement System from federal adjusted gross income. This change directly affects state and local government retirees who receive pensions through the Employees Retirement System. The key provision adjusts how these pension payments are treated for tax purposes, effectively reducing taxable income for eligible recipients. The bill is currently pending in the House Finance Committee after its January 16, 2026, introduction.