Rhode Island taxes

Rhode Island taxes personal income at 3.75% to 5.99%, and every filing status uses the same rates. A sole proprietor owes no separate business tax. Every LLC, partnership and corporation pays at least $400 a year to the Division of Taxation plus a $50 annual report fee to the Department of State, even in a year with no profit. C corporations pay 7% corporate income tax, never less than $400.

Personal income tax

Rhode Island residents file Form RI-1040. The rate is 3.75% on the first $79,900, 4.75% on the next $101,750, 5.99% on everything above $181,650 of taxable income. Every filing status uses these same steps, so filing jointly does not widen them.

Rhode Island does not let you itemize. Everyone takes the standard deduction, plus $5,100 for each exemption. Both shrink in steps once modified federal AGI passes $254,250, losing 20% for each $7,250 or part of it.

Rhode Island still has a health insurance mandate. If anyone in your household went without coverage, a penalty is added on the return itself.

Return

Form RI-1040

Rates

3.75%, 4.75%, 5.99%

Standard deduction

$10,900 single or married filing separately, $16,350 head of household, $21,800 married filing jointly

Itemized deductions

Not allowed

Exemption

$5,100 per person

Phase-out

Deduction and exemptions shrink above $254,250 of modified federal AGI and are gone $29,000 above it

Social Security and pensions

Social Security, and up to $50,000 per person of pension or annuity income, can be subtracted if you were born on or before March 1, 1959 and federal AGI is under $107,000 ($133,750 joint)

Earned income credit

16% of the federal credit, refundable

Health coverage penalty

The larger of $695 a year per uninsured adult or 2.5% of income above the federal standard deduction, capped at the average bronze plan cost

Sole proprietor

A sole proprietor with no LLC owes Rhode Island nothing at the business level. The $400 annual charge and the annual report are for LLCs, so you pay neither.

Your business profit is taxed on your own Form RI-1040. Rhode Island does not allow federal bonus depreciation, so it is added back.

Single-member LLC

Rhode Island makes a single-member LLC file Form RI-1065 and pay a $400 annual charge, even though the IRS ignores the LLC. It is due 15 April, and it is owed for any full or partial year the LLC existed, including the year it opens and the year it closes.

The LLC also files an annual report with the Department of State and pays $50. That makes $450 a year before the business earns anything. Unpaid years never expire, and they block the Letter of Good Standing you need to sell property the LLC holds. The profit is taxed on your own Form RI-1040.

Partnership

A Rhode Island partnership files Form RI-1065 and pays a $400 annual charge, whatever it earned. Limited partnerships and limited liability partnerships have owed it since 2012.

It also pays the $50 annual report fee to the Department of State. The profit is taxed on the partners' own returns.

Rhode Island makes a partnership or S corporation withhold Rhode Island tax on the income it passes to owners who live elsewhere, at the highest individual rate (7% for a corporate owner), reported on RI Schedule PTW with its return. No withholding is needed for an owner with under $1,000 of Rhode Island income or one included in the RI-1040C composite return. The amount is not worked out here, because it needs each owner's residence and share.

S corporation

A Rhode Island S corporation files Form RI-1120S and pays a $400 minimum tax every year, whatever it earned. The profit is taxed on the shareholders' own returns.

It also pays the $50 annual report fee to the Department of State.

Rhode Island makes a partnership or S corporation withhold Rhode Island tax on the income it passes to owners who live elsewhere, at the highest individual rate (7% for a corporate owner), reported on RI Schedule PTW with its return. No withholding is needed for an owner with under $1,000 of Rhode Island income or one included in the RI-1040C composite return. The amount is not worked out here, because it needs each owner's residence and share.

C corporation

A C corporation files Form RI-1120C and pays 7% of the income apportioned to Rhode Island, never less than $400. A dormant corporation still owes the $400. In a combined group, each member with Rhode Island ties owes its own $400.

A corporation selling into other states counts only its Rhode Island share, measured by sales. A sale counts where the customer receives it. The $50 annual report fee goes to the Department of State on top.

Return

Form RI-1120C

Corporate income tax

7% of Rhode Island income

Minimum tax

$400, owed even with no profit

Multi-state profit

Rhode Island sales over total sales, counted where the customer receives them

Annual report fee

$50 a year

Estimate your state tax

Pick your business type and enter this year's numbers to see the state business tax Rhode Island charges. It assumes all your sales are in Rhode Island.

An estimate for planning, not tax advice.

Sources

• Rhode Island Division of Taxation, 2025 personal income tax forms: RI-1040 instructions, Form RI-1040, Tax Rate Schedule and Worksheets, Schedule M, Social Security Worksheet, Shared Responsibility Worksheet
• tax.ri.gov Notice 2023-01, LLC filing requirements (annual charge table by tax year)
• sos.ri.gov Business Services costs and fees (annual report fee)
• tax.ri.gov 2025 RI-1120C Instructions: "Multiply the amount on line 10b by 7% (0.0700)" and "Amount on line 11, but not less than the minimum tax of $400.00"
• tax.ri.gov Corporate Tax: single sales factor with market-based sourcing from 1 January 2015

Last reviewed August 2026.