Find Local Rhode Island Tax Relief Experts

Rhode Island has a graduated individual income tax from 3.75% to 5.99%, with the top rate applying to income above $155,050 for single filers. The state sales tax is 7%, one of the higher statewide rates in New England; Rhode Island applies the tax to most goods and some services, with exemptions for food for home consumption, prescription drugs, and clothing under $250 per item. Corporate income tax in Rhode Island is 7% on net income; LLCs and S-corps are subject to the minimum tax of $400 per year, and LPs pay a $500 minimum. Payroll taxes require Rhode Island employers to withhold state income tax and file Form RI-941 quarterly; the state also mandates temporary disability insurance (TDI) contributions from employees and an employer job development fund assessment. Rhode Island's combined payroll tax obligations (income tax, TDI, and job development fund) create a significant compliance burden for small employers who must track and remit multiple withholding amounts. Back tax debt in Rhode Island accumulates at 18% annual interest on the unpaid balance, one of the highest statutory rates in New England; the Division of Taxation can garnish wages, place liens, intercept lottery winnings, and suspend driver's licenses for delinquent taxpayers. Tourism industry workers, healthcare professionals, and small business owners in the Providence-Warwick metro are among the most common Rhode Island back tax cases. Rhode Island offers installment payment arrangements and a formal appeals process through the Rhode Island Tax Administrator before appeal to Superior Court.