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Rhode Island · the numbers
Rhode Island figures at a glance for 2026
The Rhode Island numbers for the 2026 return in one place: the three rates and where they change, the standard deduction and exemption, the income band where both disappear, the retirement limits, the credits, the dates, and the estate tax line, each with a note on what it means. Plus a short list of what changed from 2025. For anyone who files here, and for anyone checking a preparer’s work.
By Charles Trautman, EA, editor
Need to Know Tax · written from Rhode Island Division of Taxation (Department of Revenue) sources, November 3, 2026; updated November 12, 2026 after the election · not yet reviewed by a Rhode Island practitioner
Rhode Island has one bracket schedule for every filing status, a standard deduction and a per-person exemption of its own, and a phase-out that takes both away between $261,000 and $290,800 of income. Those figures, the retirement income limits and the estate tax threshold are indexed each year; the rates, the credit percentages and the $50,000 pension cap are not. For 2026 everything indexed moved up a little and nothing else moved. The figures below come from the Division of Taxation’s Advisory 2025-22 unless the note says otherwise; the ones the Division had not published by early November 2026 are marked “to come.”
The core figures
| Item | 2025 | 2026 | Note |
|---|---|---|---|
| Starting point | Federal AGI | Federal AGI | Line 11 of the Form 1040. Nothing below it on the federal return reaches Rhode Island. |
| Rates | 3.75% / 4.75% / 5.99% | 3.75% / 4.75% / 5.99% | Unchanged. A 1% surtax on taxable income over $1 million begins with tax year 2027, not 2026. |
| Top of the 3.75% bracket | $79,900 | $82,050 | Same for every filing status. Tax at this point is $3,076.88. |
| Top of the 4.75% bracket | $181,650 | $186,450 | Tax at this point is $8,035.88; 5.99% applies above it. |
| Standard deduction, single or married filing separately | $10,900 | $11,200 | Taken whether or not you itemize federally. There is no itemizing on the RI-1040. |
| Standard deduction, married filing jointly or qualifying surviving spouse | $21,800 | $22,400 | |
| Standard deduction, head of household | $16,350 | $16,800 | |
| Exemption, per person | $5,100 | $5,250 | Taxpayer, spouse and each dependent, listed on Schedule E. No extra amount for age or blindness. |
| Deduction and exemption phase-out begins (modified federal AGI) | $254,250 | $261,000 | Same figure for every filing status. |
| Phase-out step | $7,250 | $7,450 | Each step, or fraction of one, over the line cuts the deduction and exemptions by 20 percentage points. |
| Deduction and exemptions gone above | $283,250 | $290,800 | Four steps past the start of the phase-out. |
| Local income tax | None | None | No Rhode Island city or town taxes income. |
| Use tax on untaxed out-of-state purchases (Schedule U) | 7% | 7% | Reported on the RI-1040. |
The 2025 column is from the Division’s 2025 tax rate schedule and worksheets; the 2026 column from Advisory 2025-22 (November 3, 2025). Non-grantor trusts and estates use a compressed schedule with breaks at $3,300 and $10,450.
What the deduction and exemptions are worth by household
| Household | Deduction | Exemptions | Total sheltered | Tax saved at 3.75% |
|---|---|---|---|---|
| Single, any age | $11,200 | $5,250 | $16,450 | $617 |
| Head of household, one child | $16,800 | $10,500 | $27,300 | $1,024 |
| Married, no children | $22,400 | $10,500 | $32,900 | $1,234 |
| Married, two children | $22,400 | $21,000 | $43,400 | $1,628 |
| Married, three children | $22,400 | $26,250 | $48,650 | $1,824 |
| Any household, modified federal AGI over $290,800 | $0 | $0 | $0 | $0 |
At the 5.99% rate, where the phase-out actually happens, each $5,250 exemption is worth $314 and the joint standard deduction $1,342.
| Modified federal AGI | Deduction and exemptions allowed |
|---|---|
| $261,000 or less | 100% |
| $261,001 to $268,450 | 80% |
| $268,451 to $275,900 | 60% |
| $275,901 to $283,350 | 40% |
| $283,351 to $290,800 | 20% |
| Over $290,800 | 0% |
The worksheet divides the excess over $261,000 by $7,450 and rounds up, so one dollar into a step counts as the whole step.
Retirement income
| Item | 2025 | 2026 | Note |
|---|---|---|---|
| Social Security modification, federal AGI limit, single / head of household / married separate | $107,000 | to come | Removes the taxable portion of benefits entirely. Requires full Social Security retirement age for 2026; the age test ends with tax year 2027. |
| Social Security modification, AGI limit, married joint / qualifying surviving spouse | $133,750 | to come | Each spouse must meet the age test for his or her own benefits. |
| Pension and annuity modification, cap per person | $50,000 | $50,000 | Pensions, 401(k), 403(b), 457(b), annuities (federal line 5b). Same age and AGI tests as Social Security. Up to $100,000 on a joint return. IRA distributions of every kind do not qualify. |
| Military retirement pay | 100% | 100% | No age or income test; surviving spouses qualify. Cannot also count toward the $50,000. |
| Federal $6,000 senior deduction | Not allowed | Not allowed | Below the line federally, so it never reaches the RI-1040. |
The Division’s publications differ on the 2025 joint limit: Advisory 2025-22 gives $133,750 and the Retirement Income Guide (Publication 2026-01) gives $133,500. The 2026 limits normally appear in the January RI-1040 instructions. Full detail in Rhode Island for retirees.
The credits
| Credit | Figure | Refundable? | Note |
|---|---|---|---|
| Earned income credit | 16% of the federal EITC | Yes | Claimed on the RI-1040; moves with the federal credit each year. |
| Child and dependent care credit | 25% of the federal credit | No | |
| Child tax credit | None for 2026 | $330 per child, refundable, begins with tax year 2027. | |
| Property tax relief credit (Form RI-1040H) | Maximum $700 for 2025; 2026 to come | Yes | Age 65 or older or receiving Social Security disability, Rhode Island resident all year, household income under an indexed limit; renters count 20% of rent. Due April 15 with no extension. |
| Credit for income tax paid to other states (Schedule II; RI-1040MU for more than one state) | Lesser of the other state’s tax or the Rhode Island tax on the same income | No | Rhode Island has no reciprocity with any state. |
| Residential lead abatement credit (Form RI-6238) | Per the form | Yes (verify) | Due April 15 with no extension. |
| CollegeBound 529 contributions (Schedule M modification) | Up to $500 single / $1,000 joint per year | Deduction, not a credit | Rhode Island’s own plan only; recaptured on rollovers out or nonqualified withdrawals. |
Worked example: what the phase-out costs at the top of the band
A married couple with three children. No Rhode Island modifications. Compare modified federal AGI of $260,000, just under the phase-out, with $291,000, just past the end of it.
| AGI $260,000 | AGI $291,000 | |
|---|---|---|
| Standard deduction | $22,400 | $0 |
| Exemptions, 5 × $5,250 | $26,250 | $0 |
| Rhode Island taxable income | $211,350 | $291,000 |
| Tax: $8,035.88 plus 5.99% of the excess over $186,450 | $9,527.39 | $14,298.43 |
| Extra Rhode Island tax on $31,000 more income | $4,771.04 | |
| Of which, 5.99% on the extra $31,000 | $1,856.90 | |
| Of which, the lost deduction and exemptions at 5.99% | $2,914.14 |
Across the band the effective state rate on the added income is about 15.4%. A 401(k) deferral, a deductible IRA or HSA contribution, or a self-employed retirement plan contribution that holds modified federal AGI under $261,000 recovers all of it, because those come off above the federal AGI line.
Filing and payment dates
| Date | What |
|---|---|
| December 3, 2026 to February 15, 2027 | Tax amnesty for periods ending on or before December 31, 2025: penalties waived, interest cut 25% |
| January 15, 2027 | Fourth 2026 estimated payment, Form RI-1040ES |
| April 15, 2027 | RI-1040 and payment due; RI-1040H and RI-6238 due with no extension; RI-4868 extension request; first 2027 estimated payment |
| June 15, 2027 | Second 2027 estimated payment |
| September 15, 2027 | Third 2027 estimated payment |
| October 15, 2027 | Extended due date for the 2026 RI-1040 |
Estimated payments are required when Rhode Island tax after withholding and credits is expected to exceed $250. There is no underestimate interest if the payments cover 80% of the current year’s tax or 100% of the prior year’s. The Division charges 12% a year on underpayments and pays 7.25% on refunds for 2026. The full calendar is in Rhode Island calendar and forms.
Beyond the income tax
| Item | 2026 |
|---|---|
| Estate tax | Threshold $1,838,056 for deaths in 2026 (credit $87,940), up from $1,802,431; a net taxable estate at or below the threshold owes nothing; graduated rates to 16% above it; no inheritance tax, no gift tax |
| State sales tax | 7%, no local add-on; the only local levies are a 1% meals-and-beverage tax and the hotel taxes. Most groceries, and clothing and footwear under $250 per item, are exempt |
| Short-term rentals | 5% whole-home short-term rental tax on the total charge, new January 1, 2026; local hotel tax 2% on all short-term rentals, up from 1% |
| Real estate conveyance tax, second tier | Applies to the part of the price over $824,000 for 2026 (up from $800,000), at $3.75 per $500, in addition to the standard rate |
| Non-owner-occupied residential property assessed over $1 million | Statewide tax effective July 1, 2026; $2.50 per $500 of assessed value above $1 million; homes rented at least 183 days a year excluded. Property tax, not on the RI-1040. |
| Reciprocal states for wages | None |
What changed from 2025
- Bracket breaks up from $79,900 and $181,650 to $82,050 and $186,450.
- Standard deduction up $300 single, $600 joint, $450 head of household.
- Exemption up $150 to $5,250.
- Phase-out band moved from $254,250–$283,250 to $261,000–$290,800; the step grew from $7,250 to $7,450.
- Estate tax threshold up $35,625 to $1,838,056.
- Refund interest down from 8% to 7.25%; underpayment interest unchanged at 12%.
- Short-term rental taxes: new 5% whole-home tax; local hotel tax 1% to 2%.
- Section 174A research expensing: Rhode Island’s add-back is now permanent from tax year 2026.
- Not changed: the three rates, the $50,000 pension cap, the military pension exemption, the EITC percentage, the 7% sales tax, the no-itemizing rule, and the state’s refusal to follow the federal tips, overtime, senior and car-loan deductions.
- Not yet: the $330 child tax credit, the end of the age test for Social Security, and the 1% surtax over $1 million all begin with tax year 2027.
Behind the scenes: one schedule for everyone
Most states with brackets give married couples wider ones. Rhode Island does not; a single filer and a joint return hit the 4.75% rate at the same $82,050 of taxable income. The state compensates on the other side of the computation, with a joint standard deduction exactly double the single one and an exemption for each person on the return. The design dates to the 2010 rewrite that replaced a five-bracket system tied to federal tax with the three rates and the state’s own deduction, and it is why the phase-out band is also the same dollar figure at every filing status. A couple reaches $261,000 of combined income far more easily than a single person does, which is where the complaints about the cliff come from.
The indexing is mechanical: the statute ties the brackets, deduction, exemption and phase-out to the consumer price index, and the Division publishes the results each November so that withholding tables and software can be set for January. The retirement income limits and the RI-1040H table are indexed the same way but come out later, with the instructions, which is why they are “to come” here.
What to bring
- Last year’s RI-1040, so this year’s figures can be compared line by line
- Dates of birth for both spouses; the retirement modifications turn on full Social Security retirement age
- Every 1099-R and the SSA-1099, with the pension and IRA amounts kept separate, since only pensions qualify for the $50,000 modification
- For a retiree or disabled homeowner or renter: the 2026 property tax bill or rent paid, for Form RI-1040H
- CollegeBound 529 contribution statements
- Estimated payment confirmations, with dates
- For a business, farm or rental: the federal depreciation schedule and any Section 174A research expenses, for the Rhode Island add-backs
Questions people ask
Did the Rhode Island income tax rates change for 2026?
No. The rates are 3.75%, 4.75% and 5.99%. The bracket breaks moved up to $82,050 and $186,450. The 1% surtax on taxable income over $1 million enacted in June 2026 starts with tax year 2027.
What is the Rhode Island standard deduction for 2026?
$11,200 single or married filing separately, $22,400 married filing jointly or qualifying surviving spouse, $16,800 head of household, plus $5,250 for each exemption. Both phase out together between $261,000 and $290,800 of modified federal AGI, at every filing status.
Does Rhode Island have a child tax credit for 2026?
No. Each dependent is a $5,250 exemption, and the state earned income credit is 16% of the federal credit. The $330 refundable child tax credit begins with tax year 2027.
What is the income limit for the Social Security and pension modifications?
For 2025 it was $107,000 for single, head of household and married filing separately and $133,750 for married joint and qualifying surviving spouse, and you must have reached full Social Security retirement age. The 2026 limits are indexed and had not been published as of early November 2026; they normally appear in the January RI-1040 instructions.
Is my IRA withdrawal covered by the $50,000 pension modification?
No. IRA distributions of every kind, traditional, Roth, SEP and SIMPLE, do not qualify, nor do rollovers or corrective distributions. The modification is for pensions, 401(k), 403(b), 457(b), profit-sharing and annuity income reported on federal line 5b.
What is the Rhode Island estate tax threshold for 2026?
$1,838,056 for deaths in 2026, expressed in the statute as a credit of $87,940. An estate at or below the threshold owes nothing. There is no inheritance tax and no gift tax.
Three rates, one schedule, and a $29,800 band where the deductions disappear
Know where $261,000 of modified federal AGI falls for your household and whether you have reached full retirement age, and most Rhode Island planning is done.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Forms and official pages named in this article
Sources and where to check
- Division of Taxation, Advisory 2025-22: Inflation Adjustments for Tax Year 2026
- Division of Taxation, 2025 Tax Rate Schedule and Worksheets
- Division of Taxation, Advisory 2026-02: Tax Changes Effective January 1, 2026 (estate tax, interest rates, short-term rentals, conveyance tax)
- Division of Taxation, Publication 2026-01: Retirement Income Guide
- Division of Taxation, Summary of 2026 Legislative Changes (July 2026)
- Division of Taxation, Advisory 2025-20: H.R. 1 Rhode Island Decoupling Guidance
- RI-1040 Resident Instructions, 2021 edition (estimated tax threshold and safe harbor; archived copy)