Rhode Island Taxes 2025
Complete tax guide and OBBBA calculator for RI residents
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Rhode Island Tax Overview 2025
State Income Tax
3.75% - 5.99%
Graduated rate structure
Combined Sales Tax
7.00%
State 7.00% + Local 0.00%
Avg Property Tax
1.63%
Above average property taxes
💼 Rhode Island Income Tax 2025
Rhode Island has graduated income tax rates from 3.75% to 5.99%.
When filing your Rhode Island state tax return, your income tax liability depends on your taxable income and filing status. Rhode Island uses a graduated income tax structure.
Rhode Island Income Tax Quick Facts
🛒 Rhode Island Sales Tax 2025
Rhode Island's combined average sales tax rate is 7.00%, which includes both state and local components. The state sales tax rate is 7.00%, while local jurisdictions add an average of 0.00%.
Sales Tax Breakdown
💡 Tip: Local sales tax rates vary by city and county. Your actual rate may be higher or lower depending on where you shop.
🏠 Rhode Island Property Tax 2025
Rhode Island's average effective property tax rate is 1.63%. Above average property taxes.
Property taxes in Rhode Island are assessed at the local level by counties and municipalities. Rates can vary significantly between jurisdictions.
Example Annual Property Tax
| Home Value | Est. Annual Tax | Monthly |
|---|---|---|
| $250,000 | $4,075 | $340 |
| $400,000 | $6,520 | $543 |
| $600,000 | $9,780 | $815 |
OBBBA Tax Benefits for Rhode Island Residents
Rhode Island residents with higher property taxes benefit from increased SALT cap.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several new federal tax deductions that Rhode Island residents can claim starting with their 2025 tax returns.
Available OBBBA Deductions for RI Residents:
Calculate Your Rhode Island Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Rhode Island resident.
Calculate My SavingsHow Rhode Island Compares
| Tax Type | RI Rate | US Average | Comparison |
|---|---|---|---|
| Income Tax (Top Rate) | 3.75% - 5.99% | 5.1% | Varies |
| Sales Tax | 7.00% | 7.12% | Below Avg |
| Property Tax | 1.63% | 1.10% | Above Avg |
Frequently Asked Questions
What is the income tax rate in Rhode Island?
Rhode Island has a graduated income tax with rates of 3.75% - 5.99%. Rhode Island has graduated income tax rates from 3.75% to 5.99%.
What is the sales tax in Rhode Island?
The combined average sales tax rate in Rhode Island is 7.00%. This includes the state rate of 7.00% plus an average local rate of 0.00%.
How do OBBBA deductions benefit Rhode Island residents?
Rhode Island residents with higher property taxes benefit from increased SALT cap. Rhode Island residents can claim tips, overtime, auto loan interest, SALT, and senior bonus deductions on their federal returns.
When are Rhode Island taxes due?
For tax year 2025, Rhode Island state taxes are due on April 15, 2026, the same date as federal taxes. Extensions may be available if you need more time to file.