STATE RANKING #33

Quick facts: 

-The State of Rhode Island has a Corporate income tax rate of 7.00% and individual income tax rate as high as 5.99%. It is also one of only a few states that has an Estate Tax. Read more below.

 

5.99%

State Income Tax

State
Income
Tax

7.00%

Cost of Setting Up A Business

state
business
tax

HIGH

Property
Taxes

7.00%

Sales
Tax (average)

State Income Taxes in Rhode Island

The state of Rhode Island does have an individual income tax. Like most states with income tax, it is calculated on a marginal scale with multiple brackets (3). The tax rates range from between 3.75% to 5.99% for 2020. The highest bracket starts at $148,350.

State Business Taxes in Rhode Island

The state of Kansas has a flat Corporate income tax rate of 7.00%. The State of Rhode Island recognizes Federal flow-thru entities, such as S-Corporations, LLCs and Partnerships, and are therefore not subject to the corporate tax rate (however they are subject to the individual rate).

Sales Taxes in Rhode Island

Unlike others states, Rhode Island has only a state sales tax (i.e. no Local Sales Tax). Its state sales tax is 7.00%.

Property Taxes in Rhode Island

The average property tax rate for residential property in the state of Rhode Island is 1.53%, which is well above the national average of 1.05%.

Estate Taxes in Rhode Island

Rhode Island is one of only a few states that has an Estate Tax. The tax based on the amount of net wealth a personal has when they pass away. Two important factors to keep in mind –

  • The tax range is 0.80% to 16.00%,
  • The first $1,579,922 is exempt from Estate Tax.

Unemployment taxes in Rhode Island

Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three:

  • Wage Base – Rhode Island has a wage base of $23,600
  • UI Rates – range from 0.15% to 9.41%
  • Schedules – Kansas has multiple rate schedules regarding UI

Rhode Island Business Entities - LLCs

Rhode Island has average costs in regards to opening an LLC. Here are some important facts:

  • Rhode Island’s annual LLC fee is $50.
  • When you register with the state, you pay a one time fee of $100
  • Secretary of State of Rhode Island website – click here
  • If you would like help setting up your LLC, we recommend using IncFile.com. They are simple and easy to use.

State #32

State #34