Rhode Island
Taxes and business formation • USA 2025–2026
TL;DR
Rhode Island at a glance — 2026 figures
State filing fees and tax position for individuals and companies registered in Rhode Island.
| Parameter | Value |
|---|---|
| Personal income tax | See the income tax section below |
| LLC formation fee | $150.00 |
| LLC annual report fee | $50.00 |
| LLC annual report deadline | May 1 |
| LLC dissolution fee | $50.00 |
| Corporation formation fee | $230.00 |
| Corporation annual report fee | $50.00 |
State filing fees are set by the Secretary of State and change without notice — the official source is linked in each section below. Federal figures for tax year 2026 are on the 2026 tax cheat sheet.
Updated: August 2026
Corporation in Rhode Island
Tax system of Rhode Island
Income Tax
Rhode Island has a progressive personal income tax for individuals with three main rates: 3.75% on income up to $73,450, 4.75% on income from $73,451 to $166,950, and 5.99% on income above $166,951. Both wages and income from rentals, business, interest, dividends, and capital gains are subject to taxation.
Sales Tax
Rhode Island's base sales tax rate is 7%, and it is the same throughout the state — there are no local surcharges. The tax applies to most goods and some services, including rentals, digital products, short-term lodging, and entertainment services. Certain items, such as groceries and medications, are exempt from taxation.
Property Tax
Property tax in Rhode Island is levied at the municipal level and depends on the local tax rate. The average effective rate is about 1.35% of market value, but it can vary significantly from city to city.
Business Taxes
Rhode Island has a Corporate Income Tax at a rate of 7.0% on the taxable income of C-corporations. A minimum tax also applies to all legal entities, including LLCs, S-corporations, and LPs — $400 per year, even when there is no income. In addition, LLCs and corporations are required to file an Annual Report with the Secretary of State. Filing period: annually from February 1 to May 1.
Excise Taxes
The state levies excise taxes on alcohol, tobacco products, gasoline, automobiles, firearms, and insurance, and there are also fees on car rentals and hotel services.
Estate / Inheritance Tax
Rhode Island has no gift tax, but it does have an estate tax in the form of a tax on the property of the deceased. The tax applies to estates exceeding $1,774,583 (for 2025), and rates range from 0.8% to 16%.
Favorable Tax Conditions
Despite moderately high personal income and property tax rates, Rhode Island offers: • A fixed and predictable sales tax rate with no additional local surcharges; • A low minimum corporate tax; • Tax incentives for high-tech, manufacturing, and export companies; • Small business support programs and tax credits for job creation.
Compared to Other States
Sales tax is lower than in many states with local surcharges (for example, California or Illinois). Personal income tax is moderate but not among the lowest, and the Corporate Income Tax is a stable 7% with a mandatory minimum. There is no inheritance tax, unlike in most states.
Frequently asked questions
Does Rhode Island have a personal income tax?+
Yes. Rhode Island levies a personal income tax on residents. The current rates and brackets are set out in the income tax section on this page, with a link to the state tax authority — rates are revised by the legislature, so always check the official source before filing.
How much does it cost to register an LLC in Rhode Island?+
The state filing fee in Rhode Island is $150.00. On top of that you need a registered agent with a physical address in the state, and FinTaxes charges from $299 for the formation service itself.
When is the annual report due for a Rhode Island LLC?+
The Rhode Island annual report fee is $50.00, due May 1. Missing it typically triggers a late penalty and, if left unresolved, administrative dissolution of the company.
Do I need to live in Rhode Island to open an LLC there?+
No. You do not need to live in Rhode Island — or in the United States at all — to own an LLC registered there. Non-residents can form and own a US LLC; what the state requires is a registered agent with a physical in-state address. Your own tax residency is a separate question and decides which returns you file.
Can FinTaxes file my Rhode Island state return remotely?+
Yes. FinTaxes prepares and e-files federal and Rhode Island state returns entirely remotely, for clients anywhere in the US or abroad, as an Authorized IRS e-file Provider.
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