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3.75% for 0-33,950. 7% for 33,950-82,250. 7.75% for 82,250-171,550. 9% for 171,550-372,950.
Like most other states in the Northeast, Rhode Island has both a statewide income tax and sales tax. The income tax is progressive tax with rates ranging from 3.75% up to 5.99%. The highest marginal rate applies to taxpayers earning more than $150,550 for tax year 2021.
In Rhode Island, the corporate tax generally is a flat 7% of net income with a $400 minimum tax. Use the states corporation income tax return (Form RI-1120C) to pay this tax.
Rhode Island also has no gift tax. The federal gift tax has an exemption of $15,000 per person per year in 2021 and $16,000 in 2022.
The RI Division of Taxation may exempt your entity from paying sales tax on purchases if your entity is one of the following types of organizations: Non-profit hospitals. Accredited educational institutions. Orphanages. Non-profit interest-free loan associations.

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Common exemptions Common exempt goods include clothing and footwear, food, and medical items. Goods for resale are also exempt from sales tax.
Rhode Island has a 7.00 percent state sales tax rate and does not levy local sales taxes. Rhode Islands tax system ranks 40th overall on our 2022 State Business Tax Climate Index.
If the aggregate value of gifts (whether in cash or in kind) received from a person or persons (except relatives as specified above) in any financial year does not exceed Rs. 50,000/-, then such gifts are not liable to Gift Tax.
A pass-through entity tax went into effect in the following states before 2022: Alabama. California. Connecticut. Idaho. Illinois. Louisiana. Massachusetts. Maryland.
As of 2022, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming are the only states that do not levy a state income tax.

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