Rhode Island has a graduated state individual income tax, with rates ranging from 3.75 percent to 5.99 percent. Rhode Island has a flat 7.00 percent corporate income tax rate, a 7.00 percent state sales tax rate, and an average combined state and local sales tax rate of 7.00 percent. Rhode Island has a 1.19 percent effective property tax rate on owner-occupied housing value. Rhode Island has an estate tax. Rhode Island’s gas tax is 41.12 cents per gallon, and its cigarette excise tax is $4.50 per pack of 20 cigarettes.
Rhode Island raises tax revenue primarily through property taxes (36.4 percent of total state and local tax revenue), individual income taxes (21.4 percent), and general sales taxes (20.7 percent). Rhode Island collects $6,841 in state and local tax collections per capita, carries $12,095 in state and local debt per capita, and has a 73 percent funded ratio of public pension plans. Rhode Island’s tax system ranks 40th overall on the 2026 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and Rhode Island is no exception. Use the tabs below to compare Rhode Island taxes with other states and to see how Rhode Island raises tax revenue. You can also browse our tax maps, which are compiled from our annual publication, Facts & Figures 2026: How Does Your State Compare?
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The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
122 min read
Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
2 min read
Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections. How do income taxes compare in your state?
9 min read
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
18 min read
Forty-four states levy a corporate income tax, with top rates ranging from a 2 percent flat rate in North Carolina to an 11.5 percent top marginal rate in New Jersey. Four states—Georgia, Nebraska, North Carolina, and Pennsylvania—reduced their corporate income tax rates effective January 1, 2026.
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Property taxes are the primary tool for financing local governments. While no taxpayers in high-tax jurisdictions will be celebrating their yearly payments, property taxes are largely rooted in the benefit principle of taxation: the people paying the property tax bills are most often the ones benefiting from the services.
9 min read
States have generally tried to encourage capital investment. Throwback and throwout rules are an unfortunate example of penalizing it.
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One relatively easy but meaningful step policymakers can take to make future tax seasons less burdensome is to modernize their state’s nonresident income tax filing, withholding, and reciprocity laws.
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Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
2 min read
Savings and investment are critical activities, both for individuals’ and families’ financial security and for the health of the national economy as a whole. As such, policymakers should consider how they can help mitigate—rather than add to—tax codes’ biases against saving and investment.
5 min read
With state tax revenues receding from all-time highs, there’s been a great deal of handwringing about whether states can afford the tax cuts adopted over the past few years. Given that 27 states reduced the rate of a major tax between 2021 and 2023, is there reason for concern?
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Reforming economic nexus thresholds would not only be better for businesses but for states as well. It is more cost-effective for states to focus on—and simplify—compliance for a reasonable number of sellers than to impose rules that have low compliance and are costly to administer.
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Do taxes affect individuals’ decisions regarding where to live and work? Can high taxes cause the outmigration of wealthy individuals?
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Does your state have a small business exemption for machinery and equipment?
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Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections. How do income taxes compare in your state?
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Short FormWorking from home is great. The tax complications? Not so much.
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