The bill amends Section 44-30-2.6 of the General Laws in Chapter 44-30, which governs Rhode Island's personal income tax. It introduces an additional tax of three percent (3%) on Rhode Island taxable income exceeding four hundred and thirty thousand dollars ($430,000) for married individuals filing joint returns, qualifying widow(er)s, heads of household, unmarried individuals, married individuals filing separate returns, and bankruptcy estates. This new tax will apply for the period January 1, 2026, through December 31, 2026, and for every year thereafter.

The dollar amount of $430,000 is intended to be in 2011 dollars, and annual inflation adjustments will be applied to this amount, similar to the original tax brackets. The new tax will be imposed in addition to the existing taxes on income and will not apply retroactively to any tax years prior to January 1, 2026, or to taxable income from prior tax years.

The existing three-bracket personal income tax structure will remain in place, and the new tax is specifically designed to impact only the top one percent (1%) of personal income tax filers. The legislation is set to take effect on January 1, 2026.

Statutes affected:
5473: 44-30-2.6