State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2020

Rhode Island State Tax Guide for Middle-Class Families

State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families.

Rhode Island

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The Bottom Line
Flag of Rhode Island

Not Tax-Friendly

Rhode Island is expensive for homeowners. In Rhode Island, residents pay an average $1,533 in taxes per $100,000 of assessed home value. The Ocean State's sales taxes lean high (and are above its neighboring states), but the income tax bite is modest.

Income Tax Range

Low: 3.75% (on up to $65,250 of taxable income)

High: 5.99% (on taxable income over $148,350)

Sales Tax

7% state levy. No local taxes.

Groceries: Exempt
Clothing: Exempt if under $250
Motor Vehicles: Taxable
Prescription Drugs: Exempt

Real Property Taxes

In Rhode Island, the median property tax rate is $1,533 per $100,000 of assessed home value.

Motor Fuel Taxes

Gasoline: 35¢ per gallon.
Diesel: 35¢ per gallon.

Sin Taxes

Cigarettes and little cigars: $4.25 per pack
Snuff: $1 per ounce
Cigars: 80% of the wholesale price with a $0.50 per cigar cap
Other tobacco products: 80% of the wholesale price

Beer: $0.12 per gallon
Wine: $1.40 per gallon
Liquor: $5.40 per gallon
Alcohol purchases are exempt from sales tax.

Annual Car Taxes and Fees

An annual vehicle excise tax based on the car's value is imposed.

Estate and Inheritance Taxes

Rhode Island has an estate tax with a 2020 exemption amount of $1,579,922 ($1,595,156 for 2021). Rates range from 0.8% to 16%.


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