Skip to content
Rhode Island Tax Overview
- The standard sales tax rate in Rhode Island is 7% on applicable goods and services.
- Rhode Island has high property taxes, ranking 10th highest nationally.
- Personal Income Tax, State Unemployment Insurance Tax, and Temporary Disability Insurance Tax are additional taxes Rhode Island processes beyond federal taxes.
Excise Taxes and Sales Tax
- Rhode Island charges an excise tax on vehicle registrations based on value.
- Rhode Island liquor vendors are responsible for paying an excise tax of $5.40 per gallon on all liquor sold.
- Sales tax is 7% of the purchase price of new or used vehicles, minus trade-in and other allowances.
- Groceries, clothing, and prescription drugs are exempt from the Rhode Island sales tax.
Tax Comparison and Other Taxes
- Taxes are higher in Rhode Island compared to Massachusetts.
- Rhode Island imposes a tax on estates based on federal estate tax laws from 2001.
- Rhode Island businesses are subject to Business Tangible Personal Property Tax.
- The Rhode Island Division of Taxation is responsible for administering and enforcing the state’s tax laws.
Taxation Details
- Rhode Island has an income tax, a capital gains tax, a corporate income tax, a sales tax, an inheritance tax, property taxes, and excise taxes.
- Gas is an example of a good that gets an excise tax.
- Your income in Rhode Island is taxed at rates ranging from 3.75% to 5.99% within given tax brackets.
Payment Options
- Rhode Island offers online, mail, and express payment options for submitting payroll taxes.
- Electronic filing is preferred.
