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Rhode Island Estate Tax

Rhode Island levies its own estate tax with an exemption of about $1.84M and a top rate of 16%, low enough that a modestly sized estate with real estate can owe state tax while owing nothing federally.

By Priya Raman, Contributing Writer, Policy & Regulation
Updated 2026-07-08

What this actually means for a Rhode Island estate

A modestly valued home and retirement account can combine to cross this line, catching estates that would owe nothing federally. Lifetime gifting (the gift tax calculator) and the step-up in basis (the step-up calculator) remain the standard tools once an estate is close to the threshold.

Why does Rhode Island's exemption land on such a specific number?

Instead of a round legislative figure, Rhode Island's threshold comes from an $87,940 credit set in an annual Division of Taxation advisory, which for 2026 works out to an exemption of $1,838,056. Estates under that number owe nothing; above it, rates top out at 16%.

Because the credit is reissued each year, the exact dollar threshold can shift, even though the underlying mechanism, and the general range, stays roughly the same. Test your own figure against it in the calculator.

Rhode Island estate tax, 2026 (verified July 2026)
Figure	Amount
Exemption (credit-based)	$1,838,056
Top rate	16%
Source	Rhode Island Division of Taxation, Advisory 2025-27

Confirm the current figure with the Rhode Island Division of Taxation before relying on it.

Good to know

Frequently asked: Rhode Island estate tax

Why does Rhode Island's exemption have an odd number like $1,838,056?

The threshold comes from a credit amount set in an annual Division of Taxation advisory rather than a round legislative figure, which is why it lands on a specific dollar amount instead of a number like $2 million.

How does the credit work in practice?

The state applies an $87,940 credit against the tax otherwise due, which functions as the exemption; estates under that threshold owe nothing.

Is Rhode Island's threshold updated every year?

Yes, the Division of Taxation issues a new advisory each year, so the exact dollar figure can shift from year to year even though the mechanism stays the same.

Is this tax advice?

No, it is an educational reference. Confirm current figures with the Rhode Island Division of Taxation or an estate attorney.