Rhode Island state income tax
Rhode Island has a state income tax. It is graduated, with a top marginal rate of 5.99%. Three brackets, uniform for all filing statuses, inflation-adjusted annually. Tax Year 2026: 3.75% on taxable income up to $82,050; 4.75% from $82,050 to $186,450; 5.99% above $186,450 (pay $8,035.88 plus 5.99% of the excess over $186,450 at the top bracket). Capital gains are taxed as ordinary income (no special lower rate).
Does Rhode Island have a state income tax?
Yes. Rhode Island taxes individual income on a graduated schedule topping out at 5.99%. Three brackets, uniform for all filing statuses, inflation-adjusted annually. Tax Year 2026: 3.75% on taxable income up to $82,050; 4.75% from $82,050 to $186,450; 5.99% above $186,450 (pay $8,035.88 plus 5.99% of the excess over $186,450 at the top bracket).
| Item | Rhode Island |
|---|---|
| State income tax | Yes, graduated |
| Top marginal rate | 5.99% |
| Capital gains | Taxed as ordinary income, up to 5.99% |
| State sales tax | 7% |
| Avg. property tax rate | 1.19% of home value |
| Estate / inheritance tax | Estate tax (exemption $1,838,056) |
How does Rhode Island tax capital gains?
Rhode Island has no separate, lower rate for capital gains. They are taxed as ordinary income at the same rates as your wages, up to 5.99%, on top of federal capital gains tax. See how capital gains tax works in 2026.
What about retirement income in Rhode Island?
Retirement income is taxed differently from wages in many states. For how Rhode Island treats Social Security, pensions, and 401(k)/IRA withdrawals, see Rhode Island retirement taxes.
Sources
- Rhode Island income tax rates and brackets: Rhode Island Department of Revenue / Taxation.
- Rhode Island capital gains treatment: Rhode Island tax authority.
- Rhode Island sales tax: Rhode Island Department of Revenue.