Overview of Rhode Island Taxes: Rhode Island has a progressive state income tax. The state’s sales tax is in the middle of the pack nationally, but property taxes are significantly higher in the Ocean State than they are nationally. Rhode Island is one of nine states that tax Social Security benefits in 2025.
Your 2025 Estimated State Income Tax:
Breakdown of Your Income Taxes
Your Annual Take-Home Pay
About This Calculator
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.
How Income Taxes Are Calculated
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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).
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Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer.
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Based on your filing status, your taxable income is then applied to the tax brackets to calculate your federal income taxes owed for the year.
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Your location will determine whether you owe local and / or state taxes.
When Do We Update? - We check for any updates to the latest tax rates and regulations annually.
Customer Service - If you would like to leave any feedback, feel free to email info@smartasset.com.
Assumptions
Deductions
- "Other Pre-Tax Deductions" are not used to calculate state taxable income.
Credits
- The only federal credit automatically calculated is the Savers Credit, depending on your eligibility.
- We do not apply any refundable credits, like the Child Tax Credit or Earned Income Tax Credit (EITC).
- We do not apply state credits in our calculations.
Itemized Deductions
- If itemizing at the federal level, you may need to itemize at the state level too. Some states don't allow itemized deductions, which is accounted for in our calculations.
- When calculating the SALT deduction for itemized deductions, we use state and local taxes, and we assume your MAGI.
- We assume that there is no cap to itemized deductions, if a state allows them.
- We do not categorize itemized deductions (such as medical expenses or mortgage interest), which could be subject to specific caps per state.
Local Tax
- Depending on the state, we calculate local taxes at the city level or county level. We do not include local taxes on school districts, metro areas or combine county and city taxes.
- With the exception of NYC, Yonkers, and Portland/Multnomah County, we assume local taxes are a flat tax on either state taxable income or gross income.
Actual results may vary based on individual circumstances and changes in tax laws or IRS regulations. Estimates provided by this calculator do not guarantee income tax amounts or rates. Past performance is not indicative of future results.
SmartAsset.com does not provide legal, tax, accounting or financial advice (except for referring users to third-party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States). Articles, opinions and tools are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual. Users should consult their accountant, tax advisor or legal professional to address their particular situation.
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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: 1.07% average effective rate
- Gas tax: 40 cents per gallon of regular gasoline
Like most other states in the Northeast, Rhode Island has both a statewide income tax and sales tax. The income tax is a progressive tax with rates ranging from 3.75% up to 5.99%. The highest marginal rate applies to taxpayers earning more than $181,650 for tax year 2025. 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 typical homeowner here pays $4,886 per year in property taxes, one of the highest median annual property tax payments of any U.S. state.
A financial advisor can help you understand how taxes fit into your overall financial goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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 Income | Rate |
|---|---|
| $0 – $79,900 | 3.75% |
| $79,900 – $181,650 | 4.75% |
| $181,650+ | 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 $10,900 for single filers and married persons filing separately, $21,800 for joint filers and qualifying widowers, and $16,350 for heads of household. The personal exemption is equal to $5,100, 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 start phasing out for taxpayers with over $254,250 in modified AGI. The deduction and exemption decrease in steps until they reach $0 for taxpayers with a modified AGI of $283,250 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 6% 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. Over-the-counter drugs are fully taxable, as are motor vehicles and transportation services.
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 median effective property tax rate (property taxes as a percentage of home value) is 1.07%. This is the 15th-highest in the U.S. The typical homeowner pays $4,886 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 $1,802,431 or more for deaths occurring after Jan. 1, 2025. Estates above those exemptions are taxed at rates ranging from 0.8% to 16%.
Rhode Island Gas Tax
This excise tax on gasoline totals 40 cents per gallon.
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 12 cents per gallon.
Rhode Island Cigarette Tax
Rhode Island’s tax on cigarettes is among the highest in the U.S. across all states and the District of Columbia. The tax is $3.75 per pack of 20, which is almost 19 cents per cigarette.