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 $77,449); 4.75% ($77,450 to $176,050); 5.99% (on income greater than $176,050)
Standard deduction: Single Filing Status: $10,550. Married Filing Jointly: $20,150
Personal Exemption Allowance: $4,950. Dependent Exemption: $4,950 (phase-out begins at $246,450 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*
Income tax comments: *Taxpayers 65 and over may exempt up to $20,000 if meet certain income requirements. IRAs excluded.
Property Tax
Local municipalities average 1.369% 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 income is less than $35,000. 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 $1,744,583 are taxed at a maximum rate of 16%; spouses are exempt. There is no inheritance tax.
Department of Revenue website: https://tax.ri.gov/
