State Income Tax

Income Tax in Rhode Island: Complete Guide 2026

Updated 2026-03-11

Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.

Income Tax in Rhode Island: Complete Guide 2026

Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.

Rhode Island imposes a graduated individual income tax with three brackets and a top marginal rate of approximately ~5.99% on taxable income above ~$166,950 for all filing statuses. The state uses federal adjusted gross income as the starting point and allows both standard and itemized deductions that conform closely to federal rules. Rhode Island offers a state earned income credit, a property tax credit for lower-income filers, and several other provisions that help moderate the overall burden. There are no local income taxes in Rhode Island.

Rhode Island Income Tax Rates (2026)

All Filing Statuses

Taxable Income BracketMarginal Rate
$0 to ~$73,450~3.75%
~$73,451 to ~$166,950~4.75%
Over ~$166,950~5.99%

Rhode Island uses the same bracket thresholds for all filing statuses, which means married couples filing jointly do not receive wider brackets.

How Rhode Island Income Tax Works

Three-Bracket Structure

Rhode Island’s three-bracket system is moderately progressive. The lowest rate of ~3.75% applies to the first ~$73,450 of taxable income, keeping the effective rate relatively low for middle-income earners. The top rate of ~5.99% is below the rates of neighboring Massachusetts (~9.0% with surcharge) and Connecticut (~6.99%).

Standard Deduction and Exemptions

  • Standard deduction: ~$10,550 for single filers; ~$21,150 for married filing jointly
  • Personal exemption: ~$4,700 per person (phased out for higher-income filers with modified AGI above ~$241,850)
  • Itemized deductions: Rhode Island allows itemized deductions but applies a limitation that reduces total deductions by ~25% of the amount exceeding a threshold for higher-income filers

Key Exclusions

  • Social Security: Fully exempt for filers with federal AGI below ~$104,250 (single) or ~$130,300 (joint); partially or fully taxable above those thresholds
  • Military retirement: Fully exempt from Rhode Island income tax
  • Pension income: No general pension exclusion, though some public employee pension income may qualify for partial relief
  • Interest on U.S. government obligations: Exempt

Tax Credits

  1. Earned income credit: ~15% of the federal EITC (refundable)
  2. Property tax relief credit: For filers 65+ or disabled with household income under ~$30,000, providing up to ~$300 in annual relief
  3. Child tax credit: Rhode Island offers a refundable child tax credit of ~$100 per qualifying child for lower-income families
  4. Historic preservation credit: For rehabilitation of qualifying historic structures
  5. Lead paint abatement credit: For costs of removing lead paint from residential properties

Who Must File in Rhode Island

You must file a Rhode Island return if:

  • You are a resident with modified federal AGI exceeding the filing threshold
  • You are a part-year resident or nonresident with Rhode Island-source income
  • You want to claim refundable credits

Rhode Island uses Form RI-1040 for residents and Form RI-1040NR for nonresidents. The filing deadline is April 15.

Comparison to National Average

StateTop Income Tax RateStructure
Rhode Island~5.99%Graduated (3 brackets)
Massachusetts~9.0% (with surcharge)Flat + surcharge
Connecticut~6.99%Graduated
New York~10.9% (with NYC)Graduated
National average~4.60%Varies

Rhode Island’s top rate is above the national average but competitive within the New England and Mid-Atlantic regions. The three-bracket structure is simpler than most neighboring states.

Tips for Minimizing Rhode Island Income Tax

  1. Claim the earned income credit. Rhode Island’s refundable EITC at ~15% of the federal credit is one of the more generous state EITCs.

  2. Verify Social Security exemption eligibility. If your federal AGI is below ~$104,250 (single) or ~$130,300 (joint), your Social Security benefits should be fully exempt.

  3. Apply for the property tax relief credit. Filers 65+ or disabled with household income under ~$30,000 can receive up to ~$300 annually.

  4. Maximize retirement contributions. 401(k) and IRA contributions reduce your federal AGI, which flows through to your Rhode Island return.

  5. Consider the lead paint abatement credit. If you own an older Rhode Island property and invest in lead paint removal, this credit can offset a portion of the cost.

  6. Stay below the personal exemption phase-out threshold. If your modified AGI approaches ~$241,850, strategies to reduce income can preserve the ~$4,700 per-person exemption.

  7. Compare standard vs. itemized deductions. Rhode Island’s standard deduction is lower than the federal amount, so itemizing may be beneficial even if you take the standard deduction on your federal return.

Key Takeaways

  • Rhode Island imposes a three-bracket graduated income tax with a top rate of ~5.99% on income above ~$166,950
  • The same bracket thresholds apply to all filing statuses, creating no marriage bonus or penalty from bracket structure
  • Social Security is exempt for filers with AGI below ~$104,250 (single) or ~$130,300 (joint)
  • The state EITC equals ~15% of the federal credit and is fully refundable
  • Military retirement is fully exempt from state income tax
  • No local income taxes are imposed in Rhode Island

Next Steps