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Rhode Island Tax Guide: 2025 Brackets & RI-1040 Filing

Complete Rhode Island income tax brackets, RI-1040 instructions, standard deduction, and key credits for the 2025 tax year (filed in 2026).

Quick Answer

Rhode Island 2025 income tax uses 3 brackets: 3.75% on the first $73,450, 4.75% on $73,451–$166,950, and 5.99% on income above $166,950. The standard deduction matches the federal amount ($14,600 single / $29,200 joint). Sales tax is 7% — groceries and clothing under $250 are exempt. Filing deadline is April 15.

5.99%
Top Income Tax Rate
7.00%
Sales Tax Rate
1.40%
Property Tax Rate
#10
Tax Burden Rank

Tax Overview

Rhode Island uses a progressive income tax system with three brackets, reaching a top rate of 5.99% on income above approximately $166,950. The state has simplified its tax code in recent years by conforming more closely to the federal system and has been working to reduce the overall tax burden to be more competitive with neighboring states.

Sales tax in Rhode Island is 7%, which is above the national average. However, the state exempts groceries and prescription drugs from sales tax, and clothing items under $250 are also exempt. There are no local option sales taxes, so the rate is uniform statewide. Rhode Island also imposes a meals and beverage tax of 8% on prepared food.

Property taxes in Rhode Island are among the higher in New England, with effective rates averaging around 1.40%. Rates vary significantly by municipality. The state offers a property tax circuit breaker credit for lower-income residents, as well as a residential property tax exemption for certain homeowners. Rhode Island does not tax Social Security benefits for most residents, and it provides a modification for retirement income from certain qualified plans.

Income Tax

Rhode Island uses the federal Form 1040 base then adjusts on Form RI-1040 (resident) or RI-1040NR (non-resident). 2025 personal exemption: $5,100. Standard deduction matches federal amounts.

Income RangeTax Rate
$0 – $79,9003.75%
$79,901 – $181,6504.75%
$181,651 +5.99%

Sales Tax

State Rate7.00%
Avg. Local Rate0.00%
Combined Rate7.00%

Property Tax

Effective Rate1.40%
Median Annual Bill$4,127

Key Deductions in Rhode Island

  • ✓Rhode Island standard deduction matching federal amounts
  • ✓Social Security income modification (exempt below income thresholds)
  • ✓Property tax circuit breaker credit for low-income residents
  • ✓Earned income credit (16% of federal EITC)
  • ✓Child tax credit rebate
  • ✓Contributions to Rhode Island 529 plan (up to $1,000 deduction)

Filing Information

Filing Deadline: April 15

Tax Authority: Rhode Island Division of Taxation

Phone: (401) 574-8829

Website: https://tax.ri.gov

Frequently Asked Questions

Does Rhode Island tax Social Security?
Rhode Island exempts Social Security benefits from state income tax for single filers with federal AGI below $101,000 and joint filers below $126,250. Above these thresholds, benefits may be partially taxable.
Is clothing taxed in Rhode Island?
Individual clothing items priced under $250 are exempt from Rhode Island's 7% sales tax. Only the amount exceeding $250 on higher-priced items is taxable.
What property tax relief is available?
Rhode Island offers a property tax circuit breaker credit for residents whose property taxes exceed a certain percentage of their household income. The state also has various local exemptions for seniors, veterans, and disabled residents.
How does Rhode Island compare to nearby states?
Rhode Island has moderate income tax rates compared to nearby Massachusetts (5% + 4% surtax) and Connecticut (6.99%). However, its 7% sales tax is higher than most neighbors, and property taxes are above average for the region.
What are Rhode Island's income tax brackets for 2025?
Rhode Island's 2025 income tax has three brackets: 3.75% on taxable income up to $73,450; 4.75% on income from $73,451 to $166,950; and 5.99% on income above $166,950. These brackets are adjusted annually for inflation.
What is Rhode Island's standard deduction for 2025?
Rhode Island conforms to the federal standard deduction: $14,600 for single filers and $29,200 for married filing jointly in the 2025 tax year. Rhode Island starts its calculation from federal taxable income, so the standard deduction is already reflected.

Neighboring State Guides

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