Rhode Island State Tax Guide
Rhode Island state tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact residents.
![picture of Rhode Island state flag on pole against golden sky](https://cdn.mos.cms.futurecdn.net/eVTxpFr7WPgFmz5i834BK4-415-80.jpg)
![Katelyn Washington](https://cdn.mos.cms.futurecdn.net/SGDhmxSnr5UafqqLReZftj.jpg)
Rhode Island state tax: Overview
Rhode Island state tax is high where property taxes are concerned. The higher-than-average tax rate and home values (compared to other states) can drive up tax bills. However, the sales tax rate in Rhode Island is reasonable, and income tax rates are fairly low compared to many other states, especially for taxpayers with higher incomes.
[Data for this state tax guide was gathered from a number of sources including the Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
Rhode island income taxes
Rhode Island income tax range
![https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png](https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-320-80.png)
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Up to $73,450 | 3.75% |
$73,450 to $166,950 | 4.75% |
More than $166,950 | 5.99% |
Rhode Island tax on retirement income: Military and Railroad Retirement benefits are tax-exempt. Social Security retirement benefits are exempt for retirees with a federal adjusted gross income (AGI) below the income thresholds set by the state.
Taxpayers who have reached full retirement age can exclude up to $20,000 of income ($40,000 for joint filers) from annuities and pensions (excluding IRAs).
Rhode Island sales tax
Rhode Island's state sales tax rate is 7%. Localities do not impose additional sales taxes, according to the Tax Foundation.
- Groceries are tax-exempt.
- Clothing less than $250 is tax-exempt.
- Prescription drugs are tax-exempt.
- Women's menstrual products are tax-exempt.
- Diapers are tax-exempt.
How much are Rhode Island property taxes?
In Rhode Island, the average effective property tax rate is 1.53%, which can result in costly tax bills, especially considering high home values in the state (when compared to other states).
Rhode Island Property Tax Breaks for Retirees
Cities and towns in Rhode Island can offer property tax credits to eligible homeowners. For example, South Kingstown offers a property tax credit of up to $2,472 to retirees age 65 and older that meet the following criteria.
- Homeowners must have owned and resided at a property in South Kingston for the past five years.
- Household income must fall below specified income limits to qualify.
Property tax credit amounts and criteria may vary from town to town. Retirees in Rhode Island should check with the jurisdiction where they live for more information about available tax credits.
Rhode Island gas taxes (motor fuel)
Gasoline: $0.37 per gallon.
Diesel: $0.37 per gallon.
Rhode Island taxes on alcohol and tobacco
Cigarettes | $4.25 per pack |
Other tobacco products | 80% of wholesale price |
Beer | $0.10 per gallon |
Wine | $1.40 per gallon |
Liquor | $5.40 per gallon |
Rhode Island estate and inheritance taxes
Rhode Island doesn't have an inheritance tax, but the state has an estate tax. Only estates valued at more than $1,733,264 are subject to the tax. Estate tax rates in Rhode Island range from 0.8% to 16%.
Related Content
![Katelyn Washington](https://cdn.mos.cms.futurecdn.net/SGDhmxSnr5UafqqLReZftj.jpg)
Katelyn has more than 6 years’ experience working in tax and finance. While she specializes in tax content, Katelyn has also written for digital publications on topics including insurance, retirement and financial planning and has had financial advice commissioned by national print publications. She believes that knowledge is the key to success and enjoys helping others reach their goals by providing content that educates and informs.
-
Seven Steps Couples Should Take Before Blending Their Finances
Getting on the same page now can ensure you remain successful throughout your relationship.
By Kiplinger Advisor Collective Published
-
Charitable Remainder Trust: The Stretch IRA Alternative
The SECURE Act killed the stretch IRA, but a properly constructed charitable remainder trust can deliver similar benefits, with some caveats.
By Brandon Mather, CFP®, CEPA, ChFEBC® Published
-
Retirees Face Significant Tax Bills Due to Fraud
Fraud A new report sheds light on how older adult scam victims end up with big tax bills and lost retirement savings.
By Kelley R. Taylor Last updated
-
Tax Day: Is the Post Office Open Late?
Tax Filing Tax Day means some people need to mail their federal income tax returns.
By Kelley R. Taylor Published
-
High Earners: Beware of These Illegal Schemes to Lower Taxes
Tax Schemes The IRS says high-income filers are targets for several illegal tax schemes.
By Katelyn Washington Last updated
-
Mailing Your Tax Return This Year? What to Know Before You Do
Tax Filing There are plenty of reasons not to mail your tax return this year, but here’s what you should know if you are.
By Katelyn Washington Last updated
-
IRS Warning: Beware of Smishing and 'Helper' Tax Scams
Scams Tax season is a time to look out for email and text message scams.
By Kelley R. Taylor Last updated
-
Most Expensive States to Live in for Homeowners
Property Taxes High property tax bills make the places on this list the most expensive states for homeowners to live in.
By Katelyn Washington Last updated
-
Don’t Miss This $2,500 Tax Break for Paying Your Student Loan
Tax Deductions Do you qualify for the student loan interest deduction this year?
By Katelyn Washington Last updated
-
How Much Richer Could You Be Without a Big Tax Refund?
Tax Refunds A big tax refund isn’t a reason to celebrate if you overpaid throughout the year. Here’s how much money your interest-free loan to the government could have cost you.
By Katelyn Washington Last updated