Rhode Island: Who Pays? 7th Edition
Rhode Island
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All figures and charts show 2024 tax law in Rhode Island, presented at 2023 income levels. Senior taxpayers are excluded for reasons detailed in the methodology. Our analysis includes nearly 100 percent of state and local tax revenue collected in Rhode Island.
State and local tax shares of family income
| Top 20% | |||||||
| Income Group | Lowest 20% | Second 20% | Middle 20% | Fourth 20% | Next 15% | Next 4% | Top 1% |
| Income Range | Less than $22,300 | $22,300 to $46,900 | $46,900 to $80,900 | $80,900 to $135,900 | $135,900 to $259,300 | $259,300 to $626,200 | Over $626,200 |
| Average Income in Group | $12,700 | $35,000 | $62,000 | $107,100 | $172,600 | $363,400 | $924,500 |
| Sales & Excise Taxes | 7.4% | 5.1% | 4.4% | 3.3% | 2.5% | 1.7% | 1.1% |
| General Sales–Individuals | 2.8% | 2.6% | 2.3% | 1.9% | 1.4% | 0.9% | 0.4% |
| Other Sales & Excise–Ind | 3.6% | 1.7% | 1.2% | 0.8% | 0.5% | 0.4% | 0.2% |
| Sales & Excise–Business | 0.9% | 0.8% | 0.8% | 0.7% | 0.6% | 0.5% | 0.4% |
| Property Taxes | 6.5% | 3.7% | 3.2% | 4.3% | 3.7% | 3.2% | 2.8% |
| Home, Rent, Car–Individuals | 5.9% | 3.1% | 2.7% | 3.7% | 3.2% | 2.5% | 1.1% |
| Other Property Taxes | 0.6% | 0.5% | 0.5% | 0.5% | 0.5% | 0.8% | 1.7% |
| Income Taxes | -0.8% | 0.9% | 1.9% | 2.7% | 3.1% | 4.1% | 4.6% |
| Personal Income Taxes | -0.8% | 0.9% | 1.9% | 2.7% | 3% | 4% | 4.6% |
| Corporate Income Taxes | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Other Taxes | 0.2% | 0.2% | 0.2% | 0.1% | 0.1% | 0.1% | 0.1% |
| TOTAL TAXES | 13.3% | 9.8% | 9.6% | 10.4% | 9.4% | 9.1% | 8.6% |
| Individual figures may not sum to totals due to rounding. | |||||||
ITEP Tax Inequality Index
ITEP’s Tax Inequality Index measures the effects of each state’s tax system on income inequality. According to this measure, Rhode Island has the 32nd most regressive state and local tax system in the country. Income disparities are larger in Rhode Island after state and local taxes are collected than before. (See Appendix B for state-by-state rankings and the report methodology for additional detail.)
Tax features driving the data in Rhode Island
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Requires combined reporting for the corporate income tax; some foreign tax haven income is partially taxed through GILTI inclusion
Standard deduction and personal exemption phase-out for upper-income taxpayers
Graduated rate structure for the real estate transfer tax
Provides a refundable Earned Income Tax Credit (EITC)
Graduated personal income tax structure
Sales tax base excludes groceries
Levies a state estate tax
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No property tax “circuit breaker” credit for low-income, non-senior taxpayers
Comparatively high reliance on property taxes
Does not provide a Child Tax Credit (CTC)
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