Compare state tax rates and rules — on income, ordinary purchases, gas, sin products, property, and more — across the U.S. Go to the Kiplinger Tax Map Rhode Island Add to State Compare List | View List View State Compare List (0) selected | Compare up to 5 The Bottom Line Not Tax-Friendly Rhode Island is expensive for homeowners. In Rhode Island, residents pay an average $1,723 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. Sales Tax 7% state levy. No local taxes. Clothing and footwear priced at $250 or less are exempt. Income Tax Range Low: 3.75% (on up to $62,250 of taxable income)High: 5.99% (on taxable income over $149,150) Motor Fuel Taxes Gasoline: $0.3500 per gallon. Diesel: $0.3500 per gallon. Property Taxes In Rhode Island, residents pay an average $1,723 in taxes per $100,000 of assessed home value. Vehicle Taxes The 7% state sales tax is applied. Rhode Island is moving to phase out its unpopular annual car tax, which has widely varying rates set by municipalities. Residents will see their bills go down as the state exempts more taxable value each year until 2024, when the tax completely disappears. Sin Taxes Cigarettes and little cigars: $4.25 per packSnuff: $1 per ounceCigars: 80% of the wholesale price with a $0.50 per cigar capOther tobacco products: 80% of the wholesale priceBeer: $0.12 per gallonWine: $1.40 per gallonLiquor: $5.40 per gallonAlcohol purchases are exempt from sales tax. Taxes On Wireless Service 15.26% Inheritance and Estate Taxes Rhode Island has an estate tax with an exclusion level that’s indexed to inflation (the 2019 threshold is $1,561,719). Rates range from 0.8% - 16%. About our methodology