Rhode Island Paycheck Calculator

Rhode Island created the first temporary disability insurance programme in the United States in 1942, and it remains funded entirely by employee contributions. Employers pay nothing toward it.

For 2026 the contribution rate is 1.1% of wages, down from 1.3%, but the taxable wage base rose from $89,200 to $100,000 — an increase of more than 12%. The net effect depends on income: someone earning under about $89,000 pays less than last year, while someone at or above the new cap pays a maximum of $1,100, only slightly below the previous maximum.

The programme now also covers Temporary Caregiver Insurance, providing paid leave to care for a family member or bond with a new child, funded from the same contribution rather than a separate levy.

Rhode Island's rates — 3.75%, 4.75% and 5.99% — are moderate for New England, and notably lower at the top than neighbouring Connecticut or Massachusetts once the latter's surtax is included.

The brackets are indexed annually, and the thresholds are generous: the 3.75% band runs to roughly $82,050 of taxable income, so a substantial share of Rhode Island workers never leave the lowest bracket at all. The top rate does not begin until around $186,450.

Rhode Island also phases out both its standard deduction and its personal exemptions for higher earners, which raises effective marginal rates through the phase-out range without changing the statutory rates.

Rhode Island's size means a large proportion of residents work in Massachusetts or Connecticut, and neither arrangement is covered by a reciprocity agreement. Cross-border workers file in both states and claim a credit against their Rhode Island liability for tax paid elsewhere.

Because Massachusetts' flat 5% sits between Rhode Island's lowest and highest rates, the outcome varies: a Rhode Island resident working in Massachusetts on a modest income may pay more than they would at home, while a higher earner may pay less and owe the difference to Rhode Island.

No Rhode Island municipality levies an income tax. The state exempts Social Security benefits for taxpayers below income thresholds and offers a modest exemption for other retirement income at full retirement age.