- 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: 53.40 cents/gallon (Includes all state, local, and federal taxes)
- Diesel Fuel Tax: 59.40 cents/gallon (Includes all state, local, and federal taxes)
- There is a mandatory 1% tax on eat-out meals and beverages.
Personal Income Tax
Income tax comments: *Taxpayers 65 and over may exempt up to $15,000 if AGI is less than $87,200 ($87,225 married filing jointly). IRAs excluded.
- Personal Income Tax Rate Range: 3.75% (on income up to $68,200); 4.75% ($68,201 to $155,050); 5.99% (on income greater than $150,551)
- Standard deduction: Single Filing Status: $9,300. Married Filing Jointly: $18,600
- Personal Exemption Allowance: $4,350. Dependent Exemption: $4,350 (phase-out begins at $217,050 income)
- Itemized Deductions Allowed? No
- Retirement Income
- Social Security: Exempt to the extent taxed at federal level if federal Adjusted Gross Income is less than $88,950 ($112,000 filing jointly). Other conditions apply.
- 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: Taxable at ordinary income tax rates*
- Military Disability Pay: Exempt
- VA Dependency & Indemnity Compensation Benefits: Exempt
- SBP/SSBP/RCSBP/RSFPP: Taxable at ordinary income tax rates*
- Local municipalities average 1.63% 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 $415 credit if income is less than $30,000. 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 $1,648,611 are taxed at a maximum rate of 16%; spouses are exempt. There is no inheritance tax.
Department of Revenue website: https://tax.ri.gov/