Section 44-30-2 - Rate of tax(a)General.(1)(i) A Rhode Island personal income tax is imposed upon the Rhode Island income of residents and nonresidents, including estates and trusts, for the period January 1, 1971 through June 30, 1971 equal to twenty percent (20%) of one-half (1/2) of the taxpayer's federal income tax liability for the taxable year commencing January 1, 1971; for the period July 1, 1971 through December 31, 1971 equal to fifteen percent (15%) of one-half (1/2) of the taxpayer's federal income tax liability for the taxable year commencing January 1, 1971; and for each taxable year on and after January 1, 1972, and ending on or before December 31, 1974 equal to fifteen percent (15%) of the taxpayer's federal income tax liability; for each taxable year on and after January 1, 1975 and ending on or before December 31, 1977 equal to seventeen percent (17%) of the taxpayer's federal income tax liability; for each taxable year ending after December 31, 1977 equal to nineteen percent (19%) of the taxpayer's federal income tax liability; for each taxable year ending after December 31, 1980 equal to nineteen and twenty-four one-hundredths percent (19.24%) of the taxpayer's federal income tax liability; for each taxable year ending after December 31, 1981 equal to twenty-one and nine-tenths percent (21.9%) of the taxpayer's federal income tax liability; for the period January 1, 1983 through June 30, 1983 equal to twenty-seven and five-tenths percent (27.5%) of the taxpayer's federal income tax liability; for the period July 1, 1983 and through June 30, 1984 equal to twenty-six percent (26%) of the taxpayer's federal income tax liability; for the period July 1, 1984 and through December 31, 1984 equal to twenty-four and nine-tenths percent (24.9%) of the taxpayer's federal income tax liability; in accordance with subsection (2) of this section for the period January 1, 1985 through June 30, 1985 equal to twenty-three and sixty-five one-hundredths percent (23.65%) of the taxpayer's federal income tax liability; for the period July 1, 1985 through December 31, 1985, equal to twenty-two and sixty-five one-hundredths percent (22.65%) of the taxpayer's federal income tax liability; in accordance with subsection (3) of this section for January 1, 1986 and thereafter shall be equal to twenty-two and twenty-one one-hundredths percent (22.21%) of the taxpayer's federal income tax liability; in accordance with the Tax Reform Act of 1986, codified primarily at 26 U.S.C. § 1 et seq., for the period January 1, 1987 through June 30, 1987 shall be equal to twenty-three and ninety-six one-hundredths percent (23.96%) of the taxpayer's federal income tax liability; for the period July 1, 1987 through December 31, 1990 shall be equal to twenty-two and ninety-six one-hundredths percent (22.96%) of the taxpayer's federal income tax liability; for the period January 1, 1991 through June 30, 1992 and for the period January 1, 1994 and thereafter shall be equal to twenty-seven and five tenths percent (27.5%) of the taxpayer's federal income tax liability; for the period July 1, 1992 through December 31, 1992 if the taxpayer's federal income tax liability is fifteen thousand dollars ($15,000) or less shall be equal to twenty-seven and five tenths percent (27.5%) of the taxpayer's federal income tax liability but if the taxpayer's federal income tax liability is greater than fifteen thousand dollars ($15,000) shall be the sum of twenty-seven and five-tenths percent (27.5%) of the taxpayer's federal income tax liability up to and including fifteen thousand dollars ($15,000) and thirty-two percent (32%) of the taxpayer's federal income tax liability in excess of fifteen thousand dollars ($15,000).(ii) The effective rate for the year 1983 shall be equal to twenty-six and seventy-five hundredths percent (26.75%) of the taxpayer's federal income tax liability. The effective rate for the year 1984 shall be equal to twenty-five and five-tenths percent (25.5%) of the taxpayer's federal income tax liability.(iii) The effective rate for the year 1985 shall be equal to twenty- three and fifteen-hundredths percent (23.15%) of the taxpayer's federal income tax liability. The effective rate for the year 1987 shall be twenty-three and forty-six one-hundredths percent (23.46%) of the taxpayer's federal income tax liability.(iv) For the year 1992, if the taxpayer's federal income tax liability for the year is greater than fifteen thousand dollars ($15,000), the effective rate on such the federal income tax liability in excess of fifteen thousand dollars ($15,000) shall be twenty-nine and seventy-five one-hundredths percent (29.75%).(v) The personal income tax rate for the year 1993 shall be in accordance with the following schedules: SCHEDULE X-RI: Single Individuals |
FEDERAL INCOME TAX LIABILITY | RI INCOME TAX |
Over | But not Over | % ON Pay + Excess | | Of The Amount Over -- |
$ 0 - | $15,000 | $ 0 | 27.5% | $ 0 |
15,000 - | 31,172 | 4,125 | 32% | 15,000 |
31,172 - | 79,772 | 9,300 | 27.55% | 31,172 |
79,772 - | | 22,689 | 25.05% | 79,772 |
The above rate table may not be used by a taxpayer who files a federal Schedule D and has taxable income in excess of $115,000.00. Those individuals must file a Rhode Island Schedule D.
SCHEDULE Y-1-RI: Married Filing Jointly or Qualifying Widow(er) |
FEDERAL INCOME TAX LIABILITY | RI INCOME TAX |
Over | But not Over | % ON Pay + Excess | | Of The Amount Over -- |
$ 0 - | $15,000 | $ 0 | 27.5% | $ 0 |
15,000 - | 35,929 | 4,125 | 32% | 15,000 |
35,929 - | 75,528 | 10,822 | 27.55% | 35,928 |
75,528 - | | 21,732 | 25.05% | 75,528 |
The above rate table may not be used by a taxpayer who files a federal Schedule D and has taxable income in excess of $140,000.00. Those individuals must file a Rhode Island Schedule D.
SCHEDULE Y-2-RI: Married Filing Separately |
FEDERAL INCOME TAX LIABILITY | RI INCOME TAX |
Over | But not Over | % ON Pay + Excess | | Of The Amount Over -- |
$ 0 - | $15,000 | $ 0 | 27.5% | $ 0 |
15,000 - | 17,964 | 4,125 | 32% | 15,000 |
17,964 - | 37,764 | 5,073 | 27.55% | 17,964 |
37,764 - | | 10,528 | 25.05% | 37,764 |
The above rate table may not be used by a taxpayer who files a federal Schedule D and has taxable income in excess of $70,000.00. Those individuals must file a Rhode Island Schedule D.
SCHEDULE Z-RI: Head of Household |
FEDERAL INCOME TAX LIABILITY | RI INCOME TAX |
Over | But not Over | % ON Pay + Excess | | Of The Amount Over -- |
$ 0 - | $15,000 | $ 0 | 27.5% | $ 0 |
15,000 - | 33,385 | 4,125 | 32% | 15,000 |
33,385 - | 77,485 | 10,008 | 27.55% | 33,385 |
77,485 - | | 22,158 | 25.05% | 77,485 |
The above rate table may not be used by a taxpayer who files a federal Schedule D and has taxable income in excess of $127,500.00. Those individuals must file a Rhode Island Schedule D.
RI INCOME TAX RATE SCHEDULES FOR |
USE BY ESTATES AND TRUSTS |
FEDERAL INCOME TAX LIABILITY | RI INCOME TAX |
Over | But not Over | % ON Pay + Excess | | Of The Amount Over -- |
$ 0 - | $ 1,405 | $ 0 | 27.5% | $ 0 |
1,405 - | 2,125 | 386 | 23.68% | 1,405 |
2,125 - | 15,000 | 557 | 21.53% | 2,125 |
15,000 - | | 3,329 | 25.05% | 15,000 |
The above rate table may not be used by a taxpayer who files a federal Schedule D and has taxable income in excess of $5,500.00. Those individuals must file a Rhode Island Schedule D.
(vi) The purpose of the 1993 rate schedules and/or the Rhode Island Schedule D shall be such that a taxpayer's 1993 Rhode Island personal income tax liability shall remain the same as it would have been prior to the enactment of the Federal Omnibus Budget Reconciliation Act of 1993, (OBRA), P.L. 103-66, 107 Stat. 312.(vii) For the year 1994 through December 31, 1997, the rate shall be twenty-seven and five-tenths percent (27.5%) of the taxpayers entire federal income tax liability.(viii) For the period January 1, 1998, through December 31, 1998, the rate shall be equal to twenty-seven percent (27%) of the taxpayer's federal income tax liability.(ix) For the period January 1, 1999, through December 31, 1999, the rate shall be equal to twenty-six and five-tenths (26.5%) of the taxpayer's federal income tax liability.(x) For the period January 1, 2000, through December 31, 2000, the rate shall be equal to twenty-six percent (26%) of the taxpayer's federal income tax liability.(xi) For the period January 1, 2001, through December 31, 2001, the rate shall be equal to twenty-five and five-tenths percent (25.5%) of the taxpayer's federal income tax liability.(xii) For the period January 1, 2002, and thereafter the rate shall be twenty-five percent (25%) of the taxpayer's federal income tax liability.(2) In the event that the indexing of the federal personal income tax scheduled to take effect on January 1, 1985, as enacted by the Economic Recovery Tax Act of 1981, 26 U.S.C. § 1 et seq., does take effect or is replaced by similar legislation, as the result of an action of the United States Congress, then the Rhode Island personal income tax rate as set forth in subdivision (a)(1) of this section for the period January 1, 1985, and through June 30, 1985, shall be changed and be equal to twenty-three and sixty-five one-hundredths percent (23.65%) of the taxpayer's federal income tax liability.(3) In the event that the indexing of the federal personal income tax scheduled to take effect on January 1, 1986, as enacted by the Economic Recovery Tax Act of 1981, 26 U.S.C. § 1 et seq., does take effect or is replaced by similar legislation as the result of an action of the United States Congress, then the Rhode Island personal income tax rate as set forth in subdivision (a)(1) of this section for the period January 1, 1986, and thereafter shall be changed and be equal to twenty-two and twenty-one one-hundredths percent (22.21%) of the taxpayer's federal income tax liability.(b)Federal income tax liability. Federal income tax liability shall be the amount of federal income tax without deduction for any new federal credit(s) enacted after January 1, 1996, (excluding self-employment tax, social security tax or any supplemental Medicare premium) or supplemental premium surcharge imposed by the Medicare Catastrophic Coverage Act of 1988 (P.L. 100-360), codified primarily at 42 U.S.C. § 1395 et seq., which the taxpayer would have been liable if the taxpayer had paid federal income tax based on federal taxable income as adjusted by the modifications provided in parts II and III of this chapter. The federal taxable income shall not include modifications which would decrease federal taxable income resulting from the applications of § 15 of chapter 489 of the public laws of 1923, as amended by § 8 of chapter 151 of the public laws of 1963; §§ 28-17-3, 36-10-32, 45-21-45, or any other sections of Rhode Island law which would provide or would be construed to provide that any pension, annuity, retirement allowance, benefit, or right shall be exempt from any state tax.(c)Cross references. For credit in respect of:(1) Taxes withheld on wages, see § 44-30-73;(2) Taxes imposed on a resident by other states, see § 44-30-18;(3) Taxes overpaid for a prior taxable year, see § 44-30-86.(d)Tax credit.(1) There shall be allowed as a credit against the Rhode Island personal income tax otherwise due for a taxable year, commencing for the tax year 1988, a contribution of five dollars ($5.00), or ten dollars ($10.00) if married and filing a joint return, to the account for the public financing of the electoral system. The first two dollars ($2.00), or four dollars ($4.00) if married and filing a joint return, shall go to a political party as defined in § 17-12.1-12 to be designated by the taxpayer or to a nonpartisan account if so indicated up to a total of two hundred thousand dollars ($200,000) collectively for all parties and the nonpartisan account. The remainder shall be deposited as general revenue.(2) The credit for the public financing of the electoral system shall appear on the face of the state personal income tax return. The tax administrator shall annually forward by August 1, all contributions to said account to the state general treasurer and the treasurer shall annually remit by September 1, the designated partisan contributions to the chairperson of the appropriate political party and the contributions made to the nonpartisan general account shall be allocated by the state general treasurer to each political party in proportion to the combined number of votes its candidates for governor received in the previous election, after five percent (5%) of the amount in the account is allocated to each party for each general officer elected in the previous statewide election. Each political party may expend moneys received under this provision for all purposes and activities permitted by the laws of Rhode Island and the United States, except that no such moneys shall be utilized for expenditures to be directly made or incurred to support or defeat a candidate in any election within the meaning of chapter 25 of title 17, or in any election for any political party nomination, or for political party office within the meaning of chapter 12 of title 17. The remaining funds shall be allocated for the public financing of campaigns for governor as set forth in §§ 17-25-19 - 17-25-27.(e)Tax adjustment.(1) Notwithstanding the provisions of subsection (a) of this section, for taxable years ending after December 31, 1980, in the event that during a period when the general assembly is not in session a change is made in the provisions of the Internal Revenue Code of the United States and amendments thereto, or other provisions of the law of the United States relating to federal income taxes, or the rules and regulations issued under these laws that alters the taxpayer's federal income tax liability, the tax administrator is directed to so change the Rhode Island personal income tax rate of the taxpayer's federal income tax liability as to retain the tax product upon receipt of which state appropriations were predicated.(2) The rate so set by the tax administrator will be effective until such time as the general assembly shall ratify this rate or set a different rate.P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1; P.L. 1973, ch. 230, § 1; P.L. 1975, ch. 260, art. 9, § 1; P.L. 1978, ch. 22, § 1; P.L. 1978, ch. 205, art. 6, § 1; P.L. 1981, ch. 291, art. 8, § 1; P.L. 1982, ch. 344, art. 9, § 1; P.L. 1983, ch. 2, art. 7, § 1; P.L. 1983, ch. 167, art. 21, § 1; P.L. 1984, ch. 245, art. VII, § 1; P.L. 1984, ch. 405, § 1; P.L. 1985, ch. 5, § 1; P.L. 1985, ch. 181, art. 44, § 1; P.L. 1985, ch. 496, art. 5, § 1; P.L. 1986, ch. 287, art. 6, § 1; P.L. 1987, ch. 118, art. 6, § 1; P.L. 1988, ch. 420, § 2; P.L. 1989, ch. 15, § 1; P.L. 1989, ch. 16, § 1; P.L. 1989, ch. 218, § 1; P.L. 1991, ch. 6, art. 16, § 1; P.L. 1992, ch. 133, art. 30, § 1; P.L. 1994, ch. 166, § 1; P.L. 1995, ch. 370, art. 40, § 149; P.L. 1996, ch. 100, art. 27, § 1; P.L. 1997, ch. 30, art. 29, § 1.