Tool | October 2017

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 $236,000 is $3,855, 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 with an item price of $250 or less are exempt.

Income Tax Range

Low: 3.75% (on up to $60,500 of taxable income)

High: 5.99% (on taxable income over $137,650)

Effective income tax rate: 3.8%/individual, 4.25%/joint

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 $238,000 is $3,884. 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.

Sin Taxes

Beer: $0.12 per gallon
Wine: $1.40 per gallon
Liquor: $5.40 per gallon


Cigarettes: $3.75 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

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

14.82%

Inheritance and Estate Taxes

Rhode Island has an estate tax with an exclusion level that's indexed to inflation (the 2017 threshold is $1,515,156). Rates range from 0.8% - 16%. There is no inheritance tax.

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