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Rhode Island Income Tax Calculator

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Overview of Rhode Island Taxes

Rhode Island has a progressive state income tax. Both the state income and sales taxes are near national averages. The average effective property tax rate in Rhode Island is the 10th-highest in the country, though. The state does tax Social Security benefits.

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Household Income
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401(k) Contribution
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IRA Contribution
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Itemized Deductions
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Number of State Personal Exemptions
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Your Income Taxes Breakdown

Tax Type Marginal 
Tax Rate
Effective 
Tax Rate
2021 
Taxes*
Federal
FICA
State
Local
Total Income Taxes
Income After Taxes
Retirement Contributions
Take-Home Pay

* These are the taxes owed for the 2021 - 2022 filing season.

Your 2021 Federal Income Tax Comparison

  • Your marginal federal income tax rate
  • Your effective federal income tax rate
  • Your federal income taxes

Total Estimated 2021 Tax Burden

Income Tax $
Sales Tax $
Fuel Tax $
Property Tax$
Total Estimated Tax Burden $
Percent of income to taxes = %
$
  • About This Answer

    Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions. Also, we separately calculate the federal income taxes you will owe in the 2020 - 2021 filing season based on the Trump Tax Plan.

    How Income Taxes Are Calculated

    • First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
    • Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer as well as dependents such as one’s spouse or children.
    • Based on your filing status, your taxable income is then applied to the the tax brackets to calculate your federal income taxes owed for the year.
    • Your location will determine whether you owe local and / or state taxes.
    ...read more
  • Last Updated: January 1, 2021

    When Do We Update? - We regularly check for any updates to the latest tax rates and regulations.

    Customer Service - If you would like to leave any feedback, feel free to email info@smartasset.com.

    ...read more
  • Our Expert

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Taxes in Rhode Island

Rhode Island State Tax Quick Facts

  • Income tax: 3.75% - 5.99%
  • Sales tax: 7%
  • Property tax: 1.53% average effective rate
  • Gas tax: 34 cents per gallon of regular gasoline and diesel

Like most other states in the Northeast, Rhode Island has both a statewide income tax and sales tax. The income tax is progressive tax with rates ranging from 3.75% up to 5.99%. The highest marginal rate applies to taxpayers earning more than $150,550 for tax year 2021. Those rates are near the national average for state income taxes, and the same is true of the state’s sales tax, which is 7%.

Property taxes in the Ocean State are a different story. The average homeowner here pays a little more than $4,300 per year in property taxes, one of the highest average annual property tax payments of any U.S. state.

A financial advisor in Rhode Island can help you understand how taxes fit into your overall financial goals. Financial advisors can also help with investing and financial planning - including retirement, homeownership, insurance and more - to make sure you are preparing for the future.

Rhode Island Income Taxes

The Rhode Island state income tax is based on three tax brackets, with lower income earners paying lower rates. The table below shows the income tax rates in Rhode Island for all filing statuses.

Income Tax Brackets

All Filers
Rhode Island Taxable IncomeRate
$0 - $66,2003.75%
$66,200 - $150,5504.75%
$150,550+5.99%

Those rates do not apply to total (or gross) income but rather to Rhode Island taxable income, which is often substantially smaller because it incorporates adjustments and deductions. Rhode Island taxable income is calculated based off of federal adjusted gross income (AGI). Net modifications are subtracted (or added) to federal AGI to reach modified AGI.

Modifications, which can be found on Rhode Island Schedule M, consist of additions and subtractions. These are typically of income sources that that are not taxed on the federal level but are taxed in Rhode Island. Additions include income from state or local debt obligations for places outside of Rhode Island. Subtractions include debt from U.S. government obligations, contributions to 529 college savings plans (up to $1,000), exemptions of profits or gains for writers and artists and modifications for performance-based compensation under the Rhode Island Jobs Growth Act (which exempts up to 50% of bonuses).

Note that Social Security income cannot be subtracted. In fact, Rhode Island is one of six states that tax Social Security benefits at the same level as the federal government. You can look into online tax software to help you with filing taxes.

Rhode Island Deductions, Exemptions and Credits

Once you have calculated modified AGI, next subtract deductions and exemptions to arrive at taxable income. Itemized deductions are not allowed in Rhode Island, but the standard deduction in the state is $9,050 for single filers and married persons filing separately; $18,100 for joint filers and qualifying widowers; and $13,550 for heads of household. The personal exemption is equal to $4,250, which can be claimed for every dependent (including yourself and your spouse) listed on your federal tax return.

Note that the standard deduction and personal exemption are phased out for taxpayers with over $210,750 in modified AGI. The deduction and exemption decrease in steps until they reach $0 for taxpayers with a modified AGI of $234,750 or higher.

Taxpayers in Rhode Island can also claim the credit for child and dependent care expenses (equal to 25% of the respective federal credit), as well as the earned income credit (equal to 15% of the respective federal credit).

Rhode Island Sales Tax

The sales tax rate in Rhode Island is 7%. There are no local (city or county) sales taxes, so that rate is the same everywhere in the state. The tax applies to the sale, lease or rental of most goods and a number of services in the state.

Important exemptions to the tax include non-prepared food (i.e. groceries), clothing, prescription drugs and medical equipment such as wheelchairs and prosthetic devices. No sales tax is collected on these items.

On the other hand, some products and services face additional taxes. Hotel and motel rentals are subject to an additional 6% tax (for a total tax of 13%). Restaurants, bars and other eating or drinking establishments face an additional 1% tax. The state also collects excise taxes on a number of products, as described in the sections below.

Rhode Island Property Tax

Want to buy a beach house on Narragansett Bay or a condo in Providence? Keep in mind the Rhode Island property taxes you’ll need to pay, which are among the highest in the U.S.

The statewide average effective property tax rate (property taxes as a percentage of home value) is 1.53%. This is the 10th-highest in the U.S. The average homeowner pays more than $4,300 per year in property taxes in Rhode Island. But for those still interested in buying a home or vacation property in Rhode Island, take a look at our mortgage rates guide for everything you need to know about getting a mortgage in the Ocean State.

Rhode Island Estate Tax

The estate tax in Rhode Island applies to gross estates of $1,648,611 or more for deaths occurring after Jan. 1, 2022. Estates above those exemptions are taxed at rates ranging from 0.8% to 16%.

Rhode Island Gas Tax

According to the American Petroleum Institute, the Ocean State has the 7th-highest tax on regular gas in the country. This excise tax totals 34 cents per gallon. The tax on diesel is also 34 cents per gallon, 9th-highest in the country.

Rhode Island Alcohol Tax

In 2013, Rhode Island repealed sales taxes on liquor and wine in order to keep prices in line with other states in the region. The sales tax still applies to beer, and excise taxes are still collected on all types of alcohol. The excise tax on liquor is $5.40 per gallon. The excise tax on wine is $1.40 per gallon. The tax on beer is 11 cents per gallon.

Rhode Island Cigarette Tax

Rhode Island’s tax on cigarettes is the fourth-highest in the U.S. across all states and the District of Columbia. The tax is $4.25 per pack of 20, which is 21.25 cents per cigarette.

Photo credit: ©iStock.com/DenisTangneyJr
  • The official name of Rhode Island is: State of Rhode Island and Providence Plantations. That is the longest state name.
  • Rhode Island is the smallest state by area. Its land area is just 1,045 square miles.
  • Aquidneck Island is the largest of Rhode Island’s more than 30 islands. It has a population of about 60,000.