Rhode Island

Sales Tax

  • Statewide: 7.0%
  • Counties cannot levy any additional sales tax
  • Common Exceptions at State Level:
    • Prescription: Exempt
    • Clothing: Exempt if under $250
    • Unprepared Foods: Exempt
    • Prepared foods: 8%
  • Gasoline Tax: 56.52 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 62.52 cents/gallon (Includes all state, local, and federal taxes)
  • There is a mandatory 1% tax on eat-out meals and beverages.

 

Personal Income Tax

  • Personal Income Tax Rate Range: 3.75% (on income up to $77,449); 4.75% ($77,450 to $176,050); 5.99% (on income greater than $176,050)
  • Standard deduction: Single Filing Status: $10,550. Married Filing Jointly: $20,150
  • Personal Exemption Allowance: $4,950. Dependent Exemption: $4,950 (phase-out begins at $246,450 income)
  • Itemized Deductions Allowed? No
  • Retirement Income
    • Social Security: Taxable*  
    • IRAs: Taxable at ordinary income tax rates*
    • 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income rates*
    • Private pensions: Taxable at ordinary income rates*
    • Public Pensions: Taxable at ordinary income rates*
  • Military Pay
    • Active Duty Pay: Taxable to the extent included in federal AGI
    • Military Retirement Pay: Exempt
    • Military Disability Pay: Exempt
    • VA Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Taxable at ordinary income tax rates* 
Income tax comments: *Taxpayers 65 and over may exempt up to $20,000 if meet certain income requirements. IRAs excluded. 

 

Property Tax

  • Local municipalities average 1.369% of the property's assessed value.
  • Calculation of assessed value: 100% of fair market value.
  • Relief programs for:
    • 65 and Over or Disabled: Up to a $600 credit if income is less than $35,000. Other exemptions may be available at the county level.
    • Disabled Veterans/Surviving Spouse: Exemptions vary by county.
  • Personal Property Tax: Yes. Rates and exemptions vary.

 

Inheritance & Estate Taxes: Estates over $1,744,583 are taxed at a maximum rate of 16%; spouses are exempt. There is no inheritance tax.

 

Department of Revenue website: https://tax.ri.gov/

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