Rhode Island Veteran Tax Exemptions 2026

Rhode Island does not tax VA disability compensation at the state level. Your monthly VA pay is excluded from Rhode Island taxable income, which keeps that money fully in your hands. The state also provides a property tax exemption for disabled veterans that reduces the assessed value of your home, with the size of the reduction tied to your rating. It is not the largest break in New England, but it is real money that compounds year over year if you file for it. This page covers both benefits and the application process.

Does Rhode Island tax VA disability income?

No. Rhode Island does not tax VA disability compensation. The state treats it the same way the federal government does, which means it is left off your taxable income entirely. Whether you are rated 10 percent or 100 percent, your VA disability pay is not taxed by Rhode Island.

Rhode Island property tax exemption for disabled veterans

$675 to $10,000 reduction. Tiered exemption by rating.

The property tax reduction in Rhode Island applies to your primary residence and scales with your disability rating. Even a partial rating qualifies for some relief, so it is worth filing the exemption claim with your city or town even if you are not at the highest rating tier.

What rating do you need in Rhode Island?

The size of your break depends on your combined VA rating. In Rhode Island, the break is tiered, so even a partial rating can lower your property tax bill, and the amount climbs as your rating climbs. Not sure what your combined rating works out to? Run it through our VA disability calculator first, and if you are aiming for the top tier, check whether you qualify for Permanent and Total status.

How to claim your Rhode Island exemption

1. Confirm your current combined rating and whether it is Permanent and Total. Your VA award letter shows both.
2. Gather your DD-214 and your VA disability award letter. Most Rhode Island offices ask for both.
3. Contact your county tax assessor for the property tax exemption, and the your state tax agency or Department of Veterans Affairs for the income side.
4. File before your county deadline. Many counties require you to apply once, then renew only if your rating changes.

Always confirm the current figures and deadlines with your county assessor and the Rhode Island Department of Veterans Affairs before you rely on them. Rules and dollar amounts change year to year.