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Rhode Island State Taxes

Quick Tax Facts

  • income tax wallet icon Income Tax: 3.75% – 5.99%
  • sales tax - credit card icon State Sales Tax: 7%
  • property tax - house icon Median Property Tax: $3,618

Overview

Rhode Island is the smallest state and one of the original U.S. colonies. Despite its small size, it has nearly 400 miles of beautiful coastline and 21 lighthouses. It’s also a melting pot of many cultures and has some of the lowest crime rates in the country. Unfortunately, its lack of land mass means higher-than-average property taxes, but the state’s income and sales taxes are more modest.

Rhode Island Income Tax

Rhode Island has a graduated income tax with three tax brackets ranging from 3.75% to 5.99%.

2023 Rhode Island Tax Rates
Taxable IncomeTax Rate
$0 – $73,4503.75%
$73,450 – $166,9504.75%
Over $166,9505.99%

Who Must File?

Every resident who is required to file a federal income tax return must file a Rhode Island income tax return (RI-1040). If a resident is not required to file a federal return but has income above their Rhode Island personal exemptions and standard deduction, they must still file a state return.

Part-Year and Nonresidents

Part-year residents must file a Rhode Island income tax return if they are required to file a federal tax return. Non-residents who have income derived from Rhode Island sources and are required to file a federal return must also file a state income tax return. Part-year and non-residents should use Form RI-1040NR.

Part-year and non-residents who are not required to file a federal income tax return may still be required to file a state return if they have state modifications that increase their federal adjusted gross income.

Rhode Island Sales Tax

Rhode Island has a state sales tax rate of 7%. No additional local sales tax is levied.

Rhode Island Property Taxes

Rhode Island property taxes are some of the highest in the United States. This is due to its lack of land mass. Property taxes help pay for many community services, such as education. Since land is limited, property taxes rates are very high to compensate for the needed revenue.

The median property tax bill in Rhode Island is approximately $3,618 (based on a median home value of $267,100). Bristol County has the highest property tax at an average of $4,477. The lowest amount is $3,380 in Providence County.

Rhode Island Property Tax
Highest

$4477

Median

$3618

Lowest

$3380

Yearly Cost Per Resident

Rhode Island Tax Holidays

Although there are no sales tax holidays currently scheduled in Rhode Island, state lawmakers recently proposed an annual “Christmas in July” for the second weekend of the month. During those two days, items below $2,500 would be tax-free. There are a few exclusions, including tobacco, gas, electricity, cars, steam, and telecommunications.

Rhode Island Tax Resources

If you need assistance preparing your Rhode Island state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.

You can also visit the Rhode Island Department of Revenue website for additional resources.