Rhode Island

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: 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

  • 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*
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. 

 

Property Tax

  • 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/

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