There are five basic legal forms of business structures found in the United States: C corporations, S corporations, sole proprietorships, partnerships, and Limited Liability Companies (LLCs). In order to understand...
The facts on Rhode Island’s Tax Climate
5.99%Individual Income TaxTop rate
9%Corporate Income TaxFlat rate
$2162Property Tax CollectionsPer Capita
Rhode Island's Individual Income Tax System
Rhode Island's personal income tax system consists of three brackets and a top rate of 5.99%. That rate ranks 24th highest among states levying an individual income tax. Rhode Island's state and local income tax collections per person were $966 in 2011 which ranked 17th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Rhode Island's Corporate Income Tax System
Rhode Island's corporate income tax system consists of a flat rate of 9%. That rate ranks 6th highest among states levying a corporate income tax. Rhode Island's state and local corporate income tax collections per person were $141 in 2011 which ranked 19th highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
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's state and local governments collect $784 per person in general sales taxes and $628 per person in excise taxes, for a combined figure of $1412, which ranks 21st highest nationally. Rhode Island's gasoline tax stands at 33¢ (14th highest nationally), while its cigarette tax stands at $3.5 (3rd highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Rhode Island Property Tax Collections Relatively High
Rhode Island's state and local governments collected approximately $2162 per person in property taxes, which ranks 7th highest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 23rd in Rhode Island
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2014, Rhode Island taxpayers worked until April 23rd (12th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Connecticut, May 9th (ranked latest nationally); Massachusetts, April 29th (ranked 5th latest nationally); and New York, May 4th (ranked 3rd latest nationally).
Rhode Island's State and Local Tax Burden Above National Average
Rhode Island's 2011 tax burden of 10.54% ranks 8th highest out of 50 states, and is above the national average of 9.8%. Rhode Island's taxpayers pay $4676 per capita in state and local taxes.
Rhode Island's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Rhode Island's 2014 Business Tax Climate Index Ranks 46
Rhode Island ranks 46th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Connecticut, 42nd, Massachusetts, 25th, and New York, 50th.
50-State Comparison of Business Tax Climates (data only) (2013)
2014 State Business Tax Climate Index (full study)
Rhode Island Info
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