Rhode Island has five tax rates, ranging from 3.75 percent to 9.9 percent. More on the Ocean State's taxes can be found in the tabbed pages below.
Income
Sales
Property
Estate
Other
Personal income tax
Rhode Island collects taxes from its residents at the following rates over five income brackets.
For single taxpayers:
-- 3.75 percent on the first $31,850 of taxable income.
-- 7 percent on taxable income between $31,851 and $77,100.
-- 7.75 percent on taxable income between $77,101 and $160,850.
-- 9 percent on taxable income between $160,851 and $349,700.
-- 9.9 percent on taxable income
of $349,701 and above.
For married persons filing joint returns:
-- 3.75 percent on the first $53,150 of taxable income.
-- 7 percent on taxable income between $53,151 and $128,500.
-- 7.75 percent on taxable income between $128,501 and $195,850.
-- 9 percent on taxable income between $195,851 and $349,700.
-- 9.9 percent on taxable income
of $349,701 and above.
The Ocean State's tax returns are due on April 15 or the next business day if that date falls on a weekend or holiday.
Rhode Island joined a national coalition of states in conforming the Rhode Island Sales and Use Tax Law to the provisions of the Streamlined Sales and Use Tax Agreement (SSUTA). The SSUTA was developed over the course of several years through the joint effort of over 40 states participating in the Streamlined Sales and Use Tax Project. The underlying purpose of the agreement is to simplify and modernize the administration of the sales and use tax laws of the member states in order to facilitate multi-state tax administration and compliance. The provisions of the new law took effect Jan. 1, 2007.
Rhode Island also collects a corresponding use
tax at the same rate. When you make a purchase of tangible
personal property outside of Rhode Island's taxing jurisdiction
and the purchase is destined for storage, use or consumption
in Rhode Island, it is subject to the use tax.
Personal and real property taxes
The administration of the assessment
and collection of all real and tangible personal property taxes
in the state of Rhode Island is handled by the municipal assessor
and collector in the jurisdiction where the property is located.
Local tax rates can be found here.
The local tax is the only tax on
property in Rhode Island, with the exception of fire district taxes in several rural communities.
Real property and real property
improvements are required to be reported on the personal property
statement by the taxpayer. The taxpayer is required to file
a personal property statement reporting all tangible personal
property in the taxing jurisdiction as of midnight on Dec. 31
each year prior to the filing year.
Oregonian business persons
and businesses must file a Confidential
Personal Property Return with the assessor in the county
where the property is located. If the assessor determines that
the total value of the taxpayer's personal property in the county
is less than $12,500 for the tax year, the assessor will cancel
the taxpayer's assessment. This amount will be indexed each
year thereafter based on the U.S. City Average Consumer Price
Index.
The property
tax relief credit is available to residents whose total household
income does not exceed $30,000. The refund is calculated based
on the amount by which property taxes (or rent) exceed a percentage
of the household income. The maximum refund is $250. Applicants
must file Form RI-1040H.
Inheritance and estate taxes
There
is no inheritance tax in Rhode
Island, but the state does
impose a tax on the transfer
of the net value of the assets
of every resident decedent
and the value of real and
personal property of nonresident
decedents located within the
state.
The
Rhode Island estate tax was
designed to absorb the federal
estate tax credit for state
death taxes. With the phaseout
of the federal credit for
state estate taxes, Rhode
Island has decoupled from
current federal estate tax
laws and adopts the version
of the Internal Revenue Code
in effect on Jan. 1, 2001.
Other Rhode Island tax facts
Rhode Island allows its taxpayers to contribute to various organizations through tax return checkoffs. Donation possibilities include a drug program account, the Olympics, the state organ transplant fund, the state council on the arts, a nongame wildlife fund, a childhood disease victims fund and a military family relief fund.
The Rhode Island Division of Taxation maintains a list of the 100 delinquent taxpayers who owe the largest amount of state tax and whose taxes have been unpaid for more than 90 days.
Residents can obtain state tax and fee
information from the Rhode Island Division of Taxation by telephone
at (401) 222-1111 or at its Web
site.
To download
tax forms on this site, you will need to install a
free copy
of Adobe Acrobat Reader. Click here for instructions.
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