Rhode Island Tax Calculator 2026

Rhode Island Tax Overview

Rhode Island Income Tax Brackets 2026

Rhode Island uses a relatively simple graduated income tax system with just three brackets. The rates range from 3.75% on the first portion of taxable income to a top rate of 5.99% on income exceeding $176,050. Rhode Island conforms to the federal standard deduction, making its system straightforward for taxpayers who also file federal returns. The state adjusts its bracket thresholds annually for inflation.

Rhode Island Standard Deduction and Exemptions

Rhode Island conforms to the federal standard deduction, which for 2026 is approximately $15,000 for single filers and $30,000 for married filing jointly. The state also offers a personal exemption of approximately $4,700 per person, which phases out at higher income levels. Rhode Island allows taxpayers to itemize deductions on their state return if they itemize on their federal return, though certain deductions may differ between the two returns.

Rhode Island Sales Tax

Rhode Island imposes a flat 7% sales tax on most tangible goods and certain services. Notably, Rhode Island is one of the few states that does not allow local jurisdictions to add their own sales taxes, so the rate is a uniform 7% everywhere in the state. This simplifies compliance for businesses operating across Rhode Island.

Rhode Island Sales Tax Exemptions

• Groceries — Exempt from sales tax (unprepared food)
• Clothing — Exempt for items under $250; taxable on the amount above $250
• Prescription medications — Exempt
• Prepared food — Subject to 8% meals and beverages tax
• Hotel accommodations — Subject to 5% state tax plus 1% local hotel tax plus 5% surcharge

The clothing exemption is particularly beneficial for Rhode Island shoppers. Items of clothing and footwear priced at $250 or less are completely exempt from sales tax. For items over $250, tax is charged only on the amount exceeding $250. This puts Rhode Island on par with neighboring Massachusetts, which has a similar clothing exemption.

Rhode Island Property Tax

Rhode Island's effective property tax rate of approximately 1.40% places it above the national average and makes it one of the higher property tax states in New England. Property taxes are assessed and collected at the municipal level, meaning rates vary substantially from town to town. Rhode Island has 39 cities and towns, each setting its own mill rate based on local budget needs.

Property Tax Rates by Notable Municipality

• Providence — Approximately $24.56 per $1,000 of assessed value
• Cranston — Approximately $22.78 per $1,000
• Warwick — Approximately $21.50 per $1,000
• Newport — Approximately $9.62 per $1,000 (lower due to high property values)
• Barrington — Approximately $16.87 per $1,000

Rhode Island offers property tax exemptions for veterans, seniors, and disabled persons. Additionally, the state provides a property tax relief credit for eligible low-income taxpayers, which is claimed on the state income tax return.

Rhode Island Social Security and Retirement Tax

Rhode Island offers a significant benefit for retirees: Social Security benefits are exempt from state income tax for individuals with federal adjusted gross income below $101,000 (single) or $126,250 (married filing jointly). This threshold is adjusted periodically. For those above the threshold, Social Security benefits may be partially taxed at the state level following federal taxation rules.

Pension income and distributions from 401(k) and IRA accounts are fully taxable in Rhode Island. However, the state's relatively moderate top rate of 5.99% makes it more affordable for retirees compared to neighboring Connecticut (which has a top rate of 6.99%) or Vermont (8.75%).

Rhode Island vs. Neighboring States

Rhode Island sits in one of the most tax-diverse regions of the country. Here is how the Ocean State compares to its neighbors:

• Massachusetts — 5% flat income tax (plus 4% surtax on income over $1 million), 6.25% sales tax, 1.15% property tax. Massachusetts has a lower sales tax and property tax than Rhode Island, but the millionaire's surtax pushes its effective top rate to 9%.
• Connecticut — Graduated 3%-6.99% income tax, 6.35% sales tax, 1.63% property tax. Connecticut has a higher top income tax rate and even higher property taxes than Rhode Island.
• New York — Graduated 4%-10.9% income tax, 4% state sales tax (+local), 1.40% property tax. New York has significantly higher income tax rates, especially for high earners.

Use our state comparison calculator to see exactly how much you could save by moving to or from Rhode Island.