Cigarette Taxes and Cigarette Smuggling by State, 2020
People respond to incentives. As tax rates increase or products are banned from sale, consumers and producers search for ways around these penalties and restrictions.
19 min read
Rhode Island Tax Rates, Collections, and Burdens
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. Overall, Rhode Island’s tax system ranks 41st on our 2024 State Business Tax Climate 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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