This morning, the office of House Speaker Paul Ryan released a blueprint for tax reform that would overhaul major components of the U.S. tax code and lower taxes for households and businesses. The key details of the plan...
The facts on Rhode Island’s Tax Climate
5.99%Individual Income TaxTop rate
7%Corporate Income TaxFlat rate
$2,282Property Tax CollectionsPer Capita
Rhode Island's Individual Income Tax System
Rhode Island's individual income tax system consists of three brackets with a top rate of 5.99%. The top rate ranks 24th highest among states levying an individual income tax. Rhode Island's state and local tax collections per person were $1,034 in 2013, which ranked 23rd highest nationally.
Rhode Island's Corporate Income Tax System
Rhode Island's corporate income tax system consists of a flat rate of 7%. That rate ranks 20th highest among states levying a corporate income tax. Rhode Island's state and local corporate income tax collections per person were $137 in 2013 which ranked 23rd highest nationally.
Rhode Island Sales and Excise Taxes
Rhode Island levies a 7% general sales or use tax on consumers, which is above the national median of 5.95%. Rhode Island does not levy additional local sales taxes. Rhode Island's state and local governments collect $837 per person in general sales taxes and $629 per person in excise taxes, for a combined figure of $1,466, which ranks 25th highest nationally. Rhode Island's gasoline tax stands at 34 cents per gallon, 9th highest nationally, while its cigarette tax stands at $3.75, 2nd highest nationally.
Rhode Island Property Tax Collections Relatively High
Rhode Island's state and local governments collected approximately $2,282 per person in property taxes in 2013, which ranks 6th nationally.
Tax Freedom Day Arrives on April 28th in Rhode Island
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Rhode Island taxpayers have to work until April 28th (42nd earliest nationally) to pay their total tax bill.
Rhode Island's State and Local Tax Burden Ranks 9th
Rhode Island's 2012 tax burden of 10.8% ranks 9th highest in the nation, and is above the national average of 9.9%. Rhode Island's taxpayers pay $4,998 per capita in state and local taxes.
Rhode Island's State-Local Tax Burden, 1977-Present
Rhode Island's 2016 Business Tax Climate Index Ranks 45th
Rhode Island ranks 45th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (34th), individual income taxes (38th), sales taxes (27th), unemployment insurance taxes (49th), and taxes on property (44th), including residential and commercial property.
State Business Tax Climate Index (full study)
Rhode Island Info
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