How does Rhode Island’s tax code compare? Rhode Island has a graduated state individual income tax, with rates ranging from 3.75 percent to 5.99 percent. Rhode Island has a 7.0 percent corporate income tax rate. Rhode Island also has a 7.00 percent state sales tax rate. Rhode Island has a 1.23 percent effective property tax rate on owner-occupied housing value.
Rhode Island has an estate tax. Rhode Island has a 38 cents per gallon gas tax rate and a $4.25 cigarette excise tax rate. The State of Rhode Island collects $6,497 in state and local tax collections per capita. Rhode Island has $11,143 in state and local debt per capita and has a 75 percent funded ratio of public pension plans. Rhode Island’s tax system ranks 39th overall on the 2025 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and Rhode Island is no exception. The first step towards understanding Rhode Island’s tax code is knowing the basics. How does Rhode Island collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2024: 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.
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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
Tax burdens rose across the country as pandemic-era economic changes caused taxable income, activities, and property values to rise faster than net national product. Tax burdens in 2020, 2021, and 2022 are all higher than in any other year since 1978.
24 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?
8 min read
Graduated corporate rates are inequitable—that is, the size of a corporation bears no necessary relation to the income levels of the owners.
7 min read
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 32 percent of state tax collections and 13 percent of local tax collections (24 percent of combined collections).
9 min read
The differences in purchasing power can be large and they have significant implications for the relative impact of economic and tax policies across the United States.
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The state EV taxation landscape reflects the evolving transportation sector and the pressing need to address both fiscal gaps in road funding and environmental concerns.
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Any move to repeal the cap or enhance the deduction would disproportionately benefit higher earners, making the tax code more regressive.
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Property taxes are the primary tool for financing local governments and generate a significant share of state and local revenues.
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If the policy goal of taxing cigarettes is to encourage cessation, vapor taxation must be considered a part of that policy design.
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As more and more states move away from throwback or throwout rules, those states that still impose these rules are becoming less attractive for businesses, which are incentivized to relocate their sales activities to non-throwback states.
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California pumps out the highest state gas tax rate of 77.9 cents per gallon (cpg), followed by Illinois (66.5 cpg) and Pennsylvania (62.2 cpg).
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However well-intended they may be, sales tax holidays remain the same as they always have been—ineffective and inefficient.
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Compare the latest 2023 sales tax rates as of July 1st. Sales tax rate differentials can induce consumers to shop across borders or buy products online.
8 min read
Taxes are the single most expensive ingredient in beer, costing more than the labor and raw materials combined.
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