The Rhode Island Division of Taxation accepts online payments made by credit card. You can also pay by mailed check or money order. Send your payment with Form 1040V to Rhode Island Division of Taxation, Dept #85, PO Box 9703, Providence, RI 02940-9703. Alternatively, you can make online Rhode Island tax estimate payments for next tax year. If you eFile your taxes and pay online, you do not have to send in Rhode Island paper forms.
State Taxes and Rates
Rhode Island’s state income tax rate 2020 is 3.75% to 5.99%. The State of Rhode Island has a 7% flat corporate tax on net income. Businesses selling, renting, or leasing taxable property must collect sales tax. Software as a Service (SaaS) is also subject to 7% sales and use tax in Rhode Island.
Rhode Island taxes retirement income and Social Security benefits in some cases at rates from 3.75% to 5.99%. The state has an average effective property tax rate of 1.53%, ranking it the tenth highest in the U.S.
How to File and Pay
You can select "Make a Payment" under "Online Transactions" on the taxpayer portal menu bar to pay Rhode Island taxes online.
Paying with Credit Card
When paying state taxes online, select "Voucher – 1040-V & 1040NR-V", follow the prompts to enter information such as SSN, Tax Year, Form Type, and Filing Status. A fee applies for credit card payments.
Additional Filing Information
If additional tax is due, file Form RI-4868 by April 15 to request an extension to October 15. For paper submissions, you must mail it with payment to the Division of Taxation. Rhode Island requires you to use the same filing status as on your federal return, but with exceptions for certain married couples.
Rhode Island Tax Code Overview
Rhode Island has a graduated individual income tax and a flat corporate income tax rate. It does not levy local sales taxes. The state’s tax system ranks 42nd on the 2023 State Business Tax Climate Index. Understanding Rhode Island’s tax code involves knowing these basics and how tax revenue is collected.