Bill > H5783

This bill increases the net taxable estate exemption in Rhode Island to four million dollars ($4,000,000) for deaths occurring on or after January 1, 2026. Currently, the estate tax exemption varies depending on the year of death, with previous thresholds ranging from $675,000 to $850,000, and a Rhode Island credit of $64,400 applied to the state estate tax. The bill adds a new provision to the existing estate tax law that will impose the tax only on estates exceeding $4 million, with the credit amount subject to annual adjustments based on the Consumer Price Index for all Urban Consumers (CPI-U). This means that estates valued at $4 million or less will be exempt from state estate taxes. The bill maintains the existing calculation method for determining the tax, which references the federal Internal Revenue Code as it was in effect on January 1, 2001. The legislation will take effect immediately upon its passage, with the new $4 million exemption threshold applying to deaths occurring on or after January 1, 2026.

Budget and Finance

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