Bill
Bill > S0329
RI S0329
RI S0329Creates an additional tax rate of 3% on taxable income over $625,000 in 2025 dollars. Applies to tax years 2026 and thereafter and not retroactively.
summary
Introduced
02/21/2025
02/21/2025
In Committee
02/21/2025
02/21/2025
Crossed Over
Passed
Dead
06/20/2025
06/20/2025
Introduced Session
2025 Regular Session
Bill Summary
This act would add create an additional Rhode Island personal income tax of three percent (3.00%) on taxable income over approximately six-hundred and twenty-five thousand dollars ($625,000) in 2025 dollars, impacting only the top one percent (1%) in income of personal income tax filers. The existing three-bracket personal income tax structure will remain in place. In order for the new bracket to apply to income over approximately six-hundred and twenty-five thousand dollars ($625,000) in 2025 dollars, the statute (which is written in 2011 dollars) uses the pre-inflation amount of four-hundred and thirty thousand ($430,000) in 2011 dollars. Each year, Rhode Island’s Division of Taxation applies inflation rates to calculate the cut- offs for all income tax brackets in current year dollars. This act would not apply retroactively to prior tax years or to taxable income from prior tax years. This act would take effect on January 1, 2026.
AI Summary
This bill creates an additional 3% tax rate on taxable income over $625,000 (in 2025 dollars) for Rhode Island personal income tax, starting in tax year 2026. The new tax bracket will be applied to the top 1% of income tax filers and will be adjusted annually for inflation, using the base amount of $430,000 from 2011 dollars. The additional tax will be imposed on top of the existing tax rates for different filing statuses and will not apply retroactively to prior tax years. The bill maintains the current three-bracket personal income tax structure, with the new bracket adding an extra layer of taxation for high-income earners. The tax administrator will continue to calculate inflation adjustments each year, ensuring that the $625,000 threshold is accurately maintained in current dollars. The bill is designed to generate additional revenue from the highest-income taxpayers while preserving the existing tax framework for most Rhode Island residents.
Committee Categories
Budget and Finance
Sponsors (10)
Melissa Murray (D)*,
Jonathon Acosta (D),
Jacob Bissaillon (D),
Frank Ciccone (D),
Walter Felag (D),
Victoria Gu (D),
Val Lawson (D),
Ryan Pearson (D),
Sue Sosnowski (D),
Lori Urso (D),
Last Action
Committee recommended measure be held for further study (on 05/29/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://status.rilegislature.gov/ |
| BillText | https://webserver.rilegislature.gov/BillText25/SenateText25/S0329.pdf |
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