Tool | Updated October 2018

State-by-State Guide to Taxes

Compare state tax rates and rules — on income, ordinary purchases, gas, sin products, property, and more — across the U.S.

Rhode Island

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The Bottom Line
Map of Rhode Island

Not Tax-Friendly

Rhode Island is expensive for homeowners. The property tax on the state’s median home value of $238,200 is $3,929 the 10th-highest in the U.S. 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)

See Kiplinger.com’s Retiree Tax Map to learn how Rhode Island taxes Social Security income and other forms of retirement income.

Motor Fuel Taxes

Gasoline: $0.34 per gallon.
Diesel: $0.34 per gallon.

Property Taxes

The median property tax on Rhode Island’s median home value of $238,200 is $3,929. See Kiplinger.com’s Retiree Tax Map for details on tax breaks for seniors in Rhode Island.

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: $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.

Travel Taxes

Hotel: 6% (5% state tax, 1% local). Sales tax is additional. Rental cars: 8%. Sales tax is also due.

Taxes On Wireless Service

15.04%

Inheritance and Estate Taxes

Rhode Island has an estate tax with an exclusion level that’s indexed to inflation (the 2018 threshold is $1,537,656). Rates range from 0.8% - 16%.

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