Sales Tax
Statewide: 7.0%
Counties cannot levy any additional sales tax
Common Exceptions at State Level:
Prescription: Exempt
Clothing: Exempt if under $250
Unprepared Foods: Exempt
Prepared foods: 8%
Gasoline Tax: 56.52 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 62.52 cents/gallon (Includes all state, local, and federal taxes)
There is a mandatory 1% tax on eat-out meals and beverages.
Personal Income Tax
Personal Income Tax Rate Range: 3.75% (on income up to $79,900); 4.75% ($79,901 to $181,650); 5.99% (on income greater than $181,650)
Standard deduction: Single Filing Status: $10,900.
Personal Exemption Allowance: $5,100. Dependent Exemption: $5,100 (phase-out begins at $254,250 income)
Itemized Deductions Allowed? No
Retirement Income
Social Security: Taxable*
IRAs: Taxable at ordinary income tax rates*
401Ks/Defined contribution employer retirement plans: Taxable at ordinary income rates*
Private pensions: Taxable at ordinary income rates*
Public Pensions: Taxable at ordinary income rates*
Military Pay
Active Duty Pay: Taxable to the extent included in federal AGI
Military Retirement Pay: Exempt
Military Disability Pay: Exempt
VA Dependency & Indemnity Compensation Benefits: Exempt
SBP/SSBP/RCSBP/RSFPP: Taxable at ordinary income tax rates*
*Taxpayers 65 and over may exempt up to $20,000 if meet certain income requirements. IRAs excluded.
Property Tax
Local municipalities average 1.32% of the property's assessed value.
Calculation of assessed value: 100% of fair market value.
Relief programs for:
65 and Over or Disabled: Up to a $600 credit if meet income requirements. Other exemptions may be available at the county level.
Disabled Veterans/Surviving Spouse: Exemptions vary by county.
Personal Property Tax: Yes. Rates and exemptions vary.
Inheritance & Estate Taxes: Estates over $1,802,431 are taxed at a maximum rate of 16%; spouses are exempt. There is no inheritance tax.
Department of Revenue Website: https://tax.ri.gov/
