Rhode Island State Income Tax Guide

Rhode Island’s state income tax system features three tax brackets with rates ranging from 3.75% to 5.99% for the 2024 tax year (the taxes due in 2025). The amount you owe depends on your taxable income, filing status, and any eligible deductions or credits.

Calculating Rhode Island state income tax rates is relatively straightforward, but it’s important to understand how factors like retirement income and residency status affect your bottom line. In this guide, we’ll take a closer look at the key factors that determine your Rhode Island tax bill and how you can maximize available credits and deductions.

*Note that you are still responsible for federal taxes if you meet the IRS income filing threshold. This article addresses state-specific taxes only.   

Rhode Island state income tax rates

For the 2024 tax year, the RI state income tax system includes three brackets applicable to all filing statuses:

Taxable income Tax rate $0 to $77,450 3.75% $77,451 to $176,050 4.75% Over $176,050 5.99%

Source: Rhode Island Division of Taxation

In this system, each rate only applies to earnings within the corresponding tax bracket. For example, if you made over $77,450 in 2024, you would be taxed at a rate of 4.75% on any income over that number. Here’s how that breaks down:

$80,450 (your 2024 income) – $77,450 = $3,000. This $3,000 would be taxed at a rate of 4.75%. The first $77,450 would be taxed at 3.75%.

Who has to file Rhode Island state income tax?

If you’re a resident of Rhode Island and required to file a federal income tax return, you generally must also file a state return.

The chart below outlines each residency status, who qualifies, and how income is taxed: 

Status Definition How Rhode Island taxes income Resident You consider Rhode Island your permanent home or maintain a permanent home in Rhode Island and spend over 183 days annually in the state. Taxes all income earned, both within and outside Rhode Island. Part-year Resident You lived in Rhode Island for part of the year and resided elsewhere for the remainder. Taxes income earned inside or outside Rhode Island while a resident and any Rhode Island-sourced income as a nonresident. Nonresident You do not claim residency in Rhode Island but earned income from Rhode Island sources. Taxes only income earned from Rhode Island sources, including property, business, or employment.

What is the standard deduction in Rhode Island?

In Rhode Island, the standard deduction lowers your taxable income and varies depending on your filing status. The state’s standard deduction amounts for the 2024 tax year are:

Filing status Standard deduction Single $10,550 Married filing jointly $21,150 Qualifying widow(er) $21,150 Head of household $15,850 Married filing separately $10,575

These deductions begin to phase out for taxpayers with modified federal adjusted gross incomes (AGIs) exceeding $246,450, with a complete phase-out at $274,650. Think of the standard deduction as a fixed dollar amount that reduces your taxable income. You’d take the standard deduction over itemized deductions if it exceeds the total of your eligible itemized deductions.

Other income tax considerations in Rhode Island

Different types of income—like retirement or investment earnings—are taxed differently in Rhode Island. Here’s an overview of the state’s different rates and rules for various income sources:

Retirement and pension income: Taxpayers at or above the Social Security full retirement age, with federal AGI below specific thresholds, can exclude up to $20,000 of taxable pension and annuity income from state taxes.

Investment income: Interest, dividends, and capital gains are fully taxable in Rhode Island.

Social Security income: Taxpayers at or above full retirement age, with a federal AGI below certain limits, may exclude taxable Social Security benefits from state income.

Military income: Active-duty military pay is subject to state income tax for residents, while nonresidents stationed in Rhode Island are exempt. Military retirement pensions are fully exempt from Rhode Island personal income tax.

Rhode Island also imposes an estate tax on estates exceeding $1,774,583 in value (as of 2024).

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Does Rhode Island have state income tax credits?

Rhode Island offers individuals several state income tax credits that can help reduce their tax liability. Some of the more prominent credits are:

Tax credit Description Amount/conditions Earned Income Credit (EIC) Refundable credit for eligible taxpayers, calculated as a percentage of the federal Earned Income Tax Credit. 16% of the federal Earned Income Tax Credit (EITC); maximum federal credit is $7,830 for 2024 tax year. Property Tax Relief Credit Provides relief for qualifying homeowners and renters based on income and property taxes paid. Up to $675, based on income and taxes paid. Credit for Child Care and Expenses Credit for expenses incurred for child and dependent care to allow taxpayers to work. 25% of the federal Child and Dependent Care Credit; nonrefundable; maximum federal credit is $6,000 for the 2024 tax year. Residential Lead Abatement Credit Credit for costs incurred in lead removal or mitigation in residential properties. 50% of qualified costs, up to $5,000 for removal or $1,500 for reduction/mitigation. Credit for Taxes Paid to Other States Prevents double taxation for residents taxed by other states on the same income. Limited to the lesser of tax paid to the other state or Rhode Island tax on that income.

How to file Rhode Island state income tax

Filing your Rhode Island state income tax is straightforward with TurboTax. We’ll guide you through each step, ensuring accuracy and maximizing deductions and credits. Whether you’re a resident, nonresident, or part-year resident, TurboTax customizes the experience to fit your unique situation.

You can file yourself or connect with a local tax expert in Rhode Island for personalized assistance. Start your Rhode Island tax return with TurboTax today and file confidently.

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