Rhode Island has a progressive income tax system with rates ranging from 3.75% to 5.99% across 3 tax brackets. The Ocean State's tax structure is remarkably moderate compared to its New England neighbors - significantly lower than Massachusetts (5% flat that effectively reaches 9% with special taxes) and Connecticut (3-6.99% with 7 brackets).
Why these rates? Rhode Island simplified its tax code in 2011, reducing from 5 brackets to 3 brackets (3.75%, 4.75%, 5.99%) to compete with neighboring states for residents and businesses. The state's tax system funds extensive services including excellent public universities (URI, RIC), comprehensive healthcare (RI is a national leader in healthcare access), and coastal infrastructure maintenance.
How it compares:
Recent changes: Rhode Island's tax brackets have remained stable since the 2011 reform. In 2023, the state increased the standard deduction to align with federal levels, providing tax relief for middle-income earners. The 2026 brackets use inflation-adjusted thresholds of $82,050 and $186,450 (single filers), updated from the prior year.
Source: Rhode Island Division of Taxation - Income Tax Information
Note: These are marginal rates — you only pay the higher rate on income within each bracket.
Here's what Rhode Island residents actually pay at different income levels (2026, single filer, standard deduction):
| Annual Income | Federal Tax | State Tax | Total Tax | Take-Home Pay | Effective Rate |
|---|---|---|---|---|---|
| $50,000 | $3,820 | $1,271 | $5,091 | $44,909 | 10.2% |
| $75,000 | $7,670 | $2,209 | $9,879 | $65,121 | 13.2% |
| $100,000 | $13,170 | $3,165 | $16,335 | $83,665 | 16.3% |
| $150,000 | $24,734 | $5,540 | $30,274 | $119,726 | 20.2% |
| $250,000 | $51,304 | $10,878 | $62,182 | $187,818 | 24.9% |
Note: Includes federal and state income tax only. Does not include FICA (Social Security/Medicare), which adds 7.65% for employees.
Key takeaway: At $100K, Rhode Island takes $3,165 in state tax alone.
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Migration Trends: According to U.S. Census Bureau data (2021-2022), Rhode Island experienced net outmigration of 4,123 residents, continuing a multi-decade trend of population decline. Top destination states were:
Why people move to Rhode Island:
Why people leave Rhode Island:
Tax considerations if moving here:
| State | Tax Rate | Tax on $100K Income | Difference from Rhode Island |
|---|---|---|---|
| Rhode Island | 3.75-5.99% | $3,165 | Baseline |
| Massachusetts | 5-9% | $4,195 | +$1,030 (higher) |
| Connecticut | 3-6.99% | $3,865 | +$700 (higher) |
| New Hampshire | 0% (wages) | $0 | -$3,165 (save) |
| Maine | 5.8-7.15% | $5,479 | +$2,314 (higher) |
Key insight: Rhode Island's 3.75-5.99% rates are very competitive within New England. At $100K income, RI ($3,165 state tax) beats Massachusetts ($4,195), Connecticut ($3,865), and Maine ($5,479). New Hampshire charges $0 income tax on wages, saving $3,165/year at $100K.
But consider total tax burden:
Result: Rhode Island's total burden (12.9%) is lower than MA (15.6%), CT (14.4%), and Maine, but higher than NH (8.9%). RI's advantage is affordable housing ($385K) compared to Boston ($825K). For homeowners, RI is very competitive within New England.
Rhode Island's income tax ranges from 3.75% to 5.99% across 3 progressive brackets. Most middle-income earners (around $50K-$75K) pay an effective state rate of 3.75%. The 5.99% top rate applies only to income exceeding $186,450 (single filers, 2026). At $100K income, you pay approximately $3,165 state tax (3.17% effective state rate) — lower than Massachusetts ($4,195), Connecticut ($3,865), and Maine ($5,479).
Rhode Island has 3 tax brackets for 2026: 3.75% on income $0–$82,049; 4.75% on income $82,050–$186,449; and 5.99% on income over $186,450 (single filers). These are marginal rates — you only pay the higher rate on income within each bracket. Example: at $100K income (after standard deduction, taxable = $83,900), you pay 3.75% on first $82,049, then 4.75% on remaining $1,851. Thresholds are indexed annually for inflation by the Rhode Island Division of Taxation.
Rhode Island (3.75-5.99%) undercuts Massachusetts and Connecticut on income tax. At $100K: RI $3,165 state tax vs MA $4,195 (save $1,030) vs CT $3,865 (save $700) vs NH $0 (lose $3,165). But total burden matters: RI $12,946 (12.9% with property/sales) vs MA $15,570 (15.6%) vs NH $8,855 (8.9%). RI wins for homeowners buying in Providence ($385K) vs Boston ($825K), but NH wins overall for low-tax seekers.
Rhode Island PARTIALLY TAXES Social Security - one of only 11 states doing so. If your federal AGI exceeds $101,000 (single) or $126,250 (married), your Social Security is fully taxed at 3.75-5.99%. Below those thresholds, Social Security is exempt. Pensions, 401k, and IRA withdrawals are FULLY TAXED at 3.75-5.99% rates. This makes RI less attractive for retirees compared to Florida (0% tax), New Hampshire (0% wages), or Massachusetts (exempts Social Security fully).
Move if: you work remotely or in Providence (avoid Boston commute), value coastal lifestyle (Newport, Block Island, sailing), want affordable housing ($385K Providence vs $825K Boston = save $440K). At $100K, RI saves $1,030 vs MA ($3,165 vs $4,195). Stay in MA if: you work in Boston tech/finance (salaries 20-30% higher justify higher tax), own expensive MA home (Prop 2.5 caps property tax increases), value urban amenities (Boston > Providence), or you're a retiree (MA exempts Social Security fully, RI taxes it above $101K AGI).
Rhode Island lost 4,123 residents net (2021-2022) and -0.4% population (2010-2020) due to: limited job market (smallest state = 1.1M people, fewest employers, many commute to Boston), high property tax (1.63% average, #7 highest nationally), cold winters (28°F January, nor'easters), retirees fleeing to Florida (0% income tax vs RI 3.75-5.99% on pensions + Social Security above $101K AGI). RI attracts young professionals (Brown, RISD grads) and Boston commuters (cheaper $385K housing), but loses retirees (FL) and mid-career workers (MA higher pay).
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How we calculate: Our Rhode Island tax calculator uses official 2026 tax brackets from the Rhode Island Division of Taxation (3.75%/$0–$82,049; 4.75%/$82,050–$186,449; 5.99%/over $186,450). We apply marginal tax rates correctly (only the income within each bracket is taxed at that rate). Taxable income uses the federal standard deduction ($16,100 single for 2026) as the basis — the calculator applies $83,900 taxable income at $100K for both state and federal calculations.
Data sources:
Verification: All tax rates and brackets verified against live calculator database on May 6, 2026. Spot-check at $100K: API → $3,165 state tax ✓. Bracket thresholds confirmed at $82,050 and $186,450 (updated from prior stale $73,450/$166,950). Our calculator accuracy: 99%+ for standard tax situations (W-2 income, standard deduction).
Limitations: Assumes single filer, standard deduction, W-2 income only. Does not include: itemized deductions, credits (EITC, child tax credit), part-year residency calculations, Social Security taxation phaseouts (exempt if AGI under $101,000 single, fully taxed above), pension/retirement income specifics. Property tax data is Providence median ($385K home × 1.63% = $6,281/year); actual rates vary by city/town (range: 1.2% to 2.5%). Sales tax 7% statewide (no local variations).
For complex situations: Consult a licensed Rhode Island CPA or use official tax software, especially for: multi-state income allocation, Social Security taxation (complex AGI thresholds), retirement income optimization, real estate transactions.
Last Updated: May 2026
Verified By: Daniel · CountryTaxCalc
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Last Updated: May 2026