RI · payroll profile

Rhode Island

Everything an out-of-state employer needs before running a Rhode Island payroll: what to withhold, which form the employee signs, whether reciprocity applies, and who to register with.

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Personal income tax
Graduated to 5.99%
Reciprocal agreements
None
SUI wage base 2026
$30,800
Local income taxes
No

Income tax withholding

Imposes wage income tax Yes
Rate structure Graduated, top marginal rate 5.99%
Withholding certificate RI W-4
Employee's Withholding Allowance Certificate
Accepts federal Form W-4 No
Convenience-of-the-employer rule No
Nonresident withholding threshold From the first dollar
Withholding required from the first dollar of Rhode Island-source wages; no de minimis day or dollar safe harbor.
Local income taxes No
No local personal income or wage taxes. Rhode Island has an employee-paid Temporary Disability Insurance / Temporary Caregiver Insurance contribution withheld through payroll.

Reciprocity

States that exempt Rhode Island residents

A Rhode Island resident working in these states files that state's certificate and is taxed only by Rhode Island.

Unemployment insurance and paid leave

Taxable wage base 2026 $30,800
2025 base was $29,800.
New employer rate 1.21%
Taxable wage base is $30,800 for most employers and $32,300 for employers at the highest tax rate. 2026 uses Schedule F; rates and the 1.21% new-employer rate include the 0.21% Job Development Assessment.
Experience rate range 0.9% – 9.4%
Experience-rating method reserve ratio
Employee UI contribution No
Paid family / medical leave Yes
Rhode Island TDI/TCI (Temporary Disability and Temporary Caregiver Insurance) is 100% employee-funded. The 2026 employee rate is 1.10% on wages up to $100,000 (maximum $1,100.00 per employee).

Employer registration

Tax agency
Rhode Island Division of Taxation
UI agency
Rhode Island Department of Labor and Training (DLT)

Sources

tax.ri.gov · taxfoundation.org · taxfoundation.org · oui.doleta.gov · oui.doleta.gov · oui.doleta.gov · dlt.ri.gov

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This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.