Rhode Island State Tax Rate 2025-2026 Guide – Rhode Island’s state tax system combines progressive income taxes with flat rates on sales, corporate income, and other levies. Whether you’re a resident filing 2025 returns in 2026, planning for 2026 income, relocating to the Ocean State, or running a business, this guide delivers the most current Rhode Island state tax rates for 2025 and 2026. All figures come directly from the Rhode Island Division of Taxation and other trusted sources.
Rhode Island Income Tax Rates and Brackets for 2025–2026
Rhode Island uses a three-bracket progressive income tax structure that applies uniformly to all filing statuses (single, married filing jointly, head of household, etc.). Brackets adjust annually for inflation per state law.
Tax Year 2025 (income earned in 2025, filed in 2026):
| Taxable Income | Tax Calculation |
|---|---|
| $0 – $79,900 | 3.75% of taxable income |
| $79,901 – $181,650 | $2,996.25 + 4.75% of excess over $79,900 |
| Over $181,650 | $7,829.38 + 5.99% of excess over $181,650 |
Tax Year 2026 (income earned in 2026, filed in 2027):
| Taxable Income | Tax Calculation |
|---|---|
| $0 – $82,050 | 3.75% of taxable income |
| $82,051 – $186,450 | $3,076.88 + 4.75% of excess over $82,050 |
| Over $186,450 | $8,035.88 + 5.99% of excess over $186,450 |
Note: These rates and brackets appear in the official 2025 RI Tax Tables and 2025 Inflation Adjustments advisory. Trusts and estates follow separate (but similar) schedules.
Rhode Island Standard Deductions and Personal Exemptions
Rhode Island offers a standard deduction and personal/dependency exemptions (also inflation-adjusted). These reduce your taxable income before applying the rates above. Phase-outs begin at higher income levels.
Standard Deduction Amounts:
| Filing Status | 2025 | 2026 |
|---|---|---|
| Single / Married Filing Separately | $10,900 | $11,200 |
| Married Filing Jointly / Qualifying Widow(er) | $21,800 | $22,400 |
| Head of Household | $16,350 | $16,800 |
Personal and Dependency Exemption: $5,100 (2025) → $5,250 (2026) per person.
Phase-Out Range (modified federal AGI):
- 2025: $254,250 – $283,250
- 2026: $261,000 – $290,800
Most middle-income filers receive the full benefit. High earners should use the Division of Taxation’s worksheets.
Rhode Island Sales Tax Rate 2025–2026
The Rhode Island state sales tax rate remains a flat 7% statewide with no local sales taxes added. This rate has been stable for decades and applies to most tangible goods and certain services.
Important 2026 updates (effective January 1, 2026):
- Local hotel tax (on all short-term rentals) increases from 1% to 2%.
- New 5% whole-home short-term rental tax applies to entire houses, condos, or dwellings rented in full (e.g., via Airbnb/Vrbo when the whole property is booked).
Use tax at 7% also applies to out-of-state purchases brought into Rhode Island.
Property Taxes in Rhode Island
Property taxes are not a state-level tax but are set locally by each of Rhode Island’s 39 municipalities and fire districts. Rates vary significantly by town and property class.
- Average effective property tax rate (owner-occupied housing): approximately 1.05% of assessed value (one of the higher rates nationally).
- FY2026 rates (based on December 31, 2024 assessments) are published annually by the Division of Municipal Finance.
New 2026 statewide tax: Starting July 1, 2026, a tax on non-owner-occupied residential properties assessed over $1 million applies at $2.50 per $500 of assessed value above the threshold (inflation-adjusted after 2027).
Rhode Island Corporate Income Tax Rate
Rhode Island imposes a flat 7% corporate income tax on Rhode Island taxable income (federal taxable income with state modifications). This rate remains unchanged for 2025 and 2026.
Pass-through entities (S-corps, LLCs, partnerships) may elect entity-level taxation at 5.99% or face withholding at the highest individual rate.
Key Tax Changes and Other Rhode Island Taxes for 2025–2026
Several notable updates affect residents and businesses:
- Real Estate Conveyance Tax — Effective October 1, 2025: Base rate rises to $3.75 per $500 of consideration (previously $2.30). Additional tier for residential properties over $800,000 (inflation-adjusted from 2026) also increases.
- Motor Fuel Tax — Rises to $0.40 per gallon effective July 1, 2025 (from $0.32).
- Estate Tax — Inflation-adjusted exemption (credit threshold): $1,802,431 (deaths in 2025) → $1,838,056 (deaths in 2026). Progressive rates up to 16%. No filing fee for deaths on or after January 1, 2025.
- Several tax credits and incentives (e.g., Jobs Growth Act, R&D credits) sunset or change for tax years beginning 2026.
How to File Rhode Island State Taxes?
Most residents file Form RI-1040 (or RI-1040NR for nonresidents) by April 15 (or the next business day). Electronic filing is encouraged via the Division of Taxation’s free online portal or commercial software. Withholding and estimated payments are required if you expect to owe $250+.
Rhode Island conforms to many federal rules but requires specific add-backs and modifications—consult the latest instructions or a tax professional.
Tax Credits, Deductions, and Relief in Rhode Island
Common credits include the property tax relief credit for seniors/disabled residents, earned income tax credit, and various business incentives (check for 2026 sunsets). Rhode Island also offers deductions for military pensions and certain retirement income.
Official Rhode Island Tax Resources
- Rhode Island Division of Taxation: tax.ri.gov
- 2025 Tax Tables & Worksheets: Official PDFs on the site
- Inflation Adjustments Advisories (ADV 2025-22 and prior)
- Municipal Tax Rates: municipalfinance.ri.gov
For the latest forms, calculators, or personalized advice, always verify directly on tax.ri.gov or consult a licensed Rhode Island tax professional. Tax laws can change, and individual circumstances vary.
This 2025-2026 Rhode Island state tax rate guide is designed to help you plan confidently and stay compliant. Bookmark it and check official sources each year for inflation adjustments and new legislation. Safe tax filing!