Rhode Island Taxes Overview
Rhode Island has some of the highest property taxes in the nation, with an average effective property tax rate of 1.53%, ranking as the 10th-highest in the country. The income tax is progressive with rates ranging from 3.75% up to 5.99%.
Rhode Island Sales Tax
The state’s sales tax is 7%, near the national average, and includes physical property like furniture, home appliances, and motor vehicles.
Rhode Island Tax Comparisons
Rhode Island has a 7.00% state sales tax rate and does not levy local sales taxes. The state’s tax system ranks 40th overall on the 2022 State Business Tax Climate Index.
Rhode Island has a progressive income tax, with three tax brackets ranging from 3.75% to 5.99%.
Rhode Island’s average effective property tax rate is 1.53%, resulting in costly tax bills, especially considering high home values in the state. Cities and towns may offer property tax credits to eligible homeowners.
Tax brackets and standard deductions in Rhode Island have been updated recently. Free tax file services are offered by four providers, and volunteers provide free tax preparation for low-income families.