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Bill > S2238

RI S2238

RI S2238
Creates an additional tax rate of 3% on taxable income over $640,000 in 2026 dollars. Applies to tax years 2027 and thereafter and not retroactively.

summary

Introduced
01/23/2026
In Committee
01/23/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

This act would create an additional Rhode Island personal income tax of three percent (3.00%) on taxable income over approximately six-hundred and forty thousand dollars ($640,000) in 2026 dollars, impacting only the top one percent (1%) in income of personal income tax filers. This tax would apply to taxable income after all appropriate exemptions and deductions and not to total income. The existing three-bracket personal income tax structure would remain in place. Each year, Rhode Island’s division of taxation would apply an inflation adjustment to revise the top one percent (1%) cut-off for the following tax year. 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, 2027.

AI Summary

This bill establishes a new, additional 3% tax rate on Rhode Island personal income for tax years beginning on or after January 1, 2027, which will apply to taxable income exceeding $640,000, adjusted annually for inflation, and is intended to affect only the highest-earning 1% of taxpayers. This new tax will be added to the existing personal income tax structure and will not be applied retroactively to prior tax years or income.

Committee Categories

Budget and Finance

Sponsors (10)

Last Action

Introduced, referred to Senate Finance (on 01/23/2026)

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Document Type Source Location
State Bill Page https://status.rilegislature.gov/
BillText https://webserver.rilegislature.gov/BillText26/SenateText26/S2238.pdf
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