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
$32,550 of taxable income
-- 7 percent on taxable
income between $32,551 and
$78,850
-- 7.75 percent on taxable
income between $78,851 and
$164,550
-- 9 percent on taxable
income between $164,551
and $357,700
-- 9.9 percent on taxable
income of $357,701 and above.
For married persons filing joint returns:
-- 3.75 percent on the first
$54,400 of taxable income
-- 7 percent on taxable
income between $54,401 and
$131,450
-- 7.75 percent on taxable
income between $131,451
and $200,300
-- 9 percent on taxable
income between $200,301
and $357,700
-- 9.9 percent on taxable
income of $357,701 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.
Sales tax
Rhode Island's sales
tax rate is 7 percent.
Rhode Island joined a national coalition of states in conforming the Rhode Island Sales and 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 forty 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 and you need
to file Form
T-205.
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 at the Rhode
Island Economic Development Corporation's
Web
site.
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.
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
at the Rhode Island Division of Taxation's
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.
