Income Tax
Rhode Island levies a progressive state income tax ranging from 3.75% to 5.99%, applied across three brackets.
Individual income tax collections
1990–2025Census State Government Tax Collections (FRED RIINCTAX).
| Indicator | Rhode Island | U.S. |
|---|---|---|
| Top income tax rate (%) | 5.99 | 4.5 |
- •Rhode Island's top income tax rate of 5.99% is lower than neighboring Massachusetts and Connecticut top brackets in some years.
Property Tax
Rhode Island's effective property tax rate is 1.30%, among the highest in the nation, driven by heavy reliance on local property taxes for municipal funding.
State-level property tax collections
1990–2025Census State Government Tax Collections; excludes local property taxes (FRED RIPROPTAX).
| Indicator | Rhode Island | U.S. |
|---|---|---|
| Effective property tax rate (%) | 1.3 | 0.9 |
- •Rhode Island's 1.30% effective property tax rate ranks among the highest in the United States.
Sales Tax
Rhode Island applies a statewide sales tax of 7.0% with no additional local sales taxes, one of the simplest sales tax systems in the country.
General sales tax collections
1990–2025Census State Government Tax Collections (FRED RISALESTAX).
| Indicator | Rhode Island | U.S. |
|---|---|---|
| Sales tax rate (%) | 7 | 6.6 |
- •Rhode Island is one of the few states where the sales tax rate is exactly the same everywhere, with zero local add-ons.
Tax Burden
Rhode Island residents face a total tax burden of about 10.8% of income, one of the higher combined burdens in the Northeast.
State tax collections per resident
1990–2025Census tax collections (RITOTLTAX) divided by Census resident population (RIPOP).
| Indicator | Rhode Island | U.S. |
|---|---|---|
| Total tax burden (%) | 10.8 | 9.9 |
- •Rhode Island's 10.8% tax burden ranks among the higher rates in the Northeast region.
Tax Revenue
Rhode Island collects approximately $4.9 billion in annual state tax revenue, funding education, healthcare and infrastructure programs.
State tax collections
1990–2025Census Annual Survey of State Government Tax Collections, fiscal years (FRED RITOTLTAX).
| Indicator | Rhode Island | U.S. |
|---|---|---|
| Tax revenue (billions) | 4.9 | 2200 |
- •Rhode Island's $4.9 billion in annual tax revenue funds services for just over 1.1 million residents, one of the highest per-capita bases in the Northeast.