Rhode Island Capital Gains Tax Calculator
Rhode Island taxes capital gains as ordinary income at the state level, which means a gain on selling shares, property or other investments is added to your other income and taxed using the Rhode Island income tax brackets, with no separate preferential long-term rate like the federal system provides. This calculator estimates the Rhode Island state tax on a capital gain by stacking the gain on top of your other taxable income and applying the sourced Rhode Island Division of Taxation brackets for tax year 2024, then taking the difference. Enter your gain, your other annual taxable income and your filing status to see the state tax attributable to the gain and the effective rate on it. The result is the Rhode Island state portion only; federal capital gains tax, which has separate short-term and long-term rates set by the IRS, is calculated separately. Because the gain stacks on your other income, the same gain is taxed at a higher rate the more you already earn. Some states provide specific exclusions or preferential treatment for certain gains; this tool uses the standard ordinary-income method and links the Rhode Island Division of Taxation so you can confirm any special rule that applies to you.
Rhode Island taxes capital gains as ordinary income. A $20,000.00 gain on top of $60,000.00 of other income (single) adds about $0.00 in Rhode Island state tax, an effective rate on the gain of 0.00%.
How Rhode Island taxes capital gains
Rhode Island taxes capital gains as ordinary income, so the gain is added to your other income and taxed at the Rhode Island bracket rates.
state tax on gain = state income tax on (other income + gain) - state income tax on (other income)
effective rate on gain = state tax on gain / gain x 100
Rhode Island capital gains tax: frequently asked questions
How are capital gains taxed in Rhode Island?
Rhode Island taxes capital gains as ordinary income at the state level: the gain is added to your other taxable income and taxed using the Rhode Island income tax brackets published by the Rhode Island Division of Taxation. This calculator applies those brackets to your gain. Some states provide specific exclusions or rates for particular gains; confirm your situation with the Rhode Island Division of Taxation.
How much state tax will I pay on a $20,000.00 capital gain in Rhode Island?
Stacked on $60,000.00 of other income, a $20,000.00 gain adds about $0.00 of Rhode Island state income tax for a single filer, an effective rate on the gain of 0.00%. Your figure depends on your total income and filing status; enter them above.
Does Rhode Island have a separate long-term capital gains rate?
Most states, including the default treatment here, tax long-term and short-term capital gains at the same ordinary income rates, unlike the federal system which has preferential long-term rates. Any state-specific exclusion or preferential rate is set by the Rhode Island Division of Taxation; this calculator uses the ordinary income method and links the source.
What are Rhode Island's 2024 income tax brackets?
Rhode Island uses the same three-bracket schedule for all filing statuses in 2024: 3.75% on income up to $77,450; 4.75% on $77,451-$176,050; and 5.99% on income above $176,050. Rhode Island adjusts these thresholds annually for inflation. Authority: Rhode Island Division of Taxation, Rhode Island General Laws §44-30-2.6.
What is Rhode Island's standard deduction for 2024?
Rhode Island's standard deduction for 2024 is $10,100 for single filers and married filing separately, $20,200 for married filing jointly, and $15,150 for head of household. These are Rhode Island's own amounts and are lower than the federal standard deduction. Rhode Island also allows a $4,900 personal exemption per exemption claimed, though this phases out at higher incomes. Rhode Island General Laws §44-30-2.6.
How does Rhode Island's personal exemption phase-out work?
Rhode Island provides a personal exemption of $4,900 per exemption for 2024. However, this exemption begins to phase out when Rhode Island modified federal adjusted gross income exceeds certain thresholds. As income rises above the phase-out threshold, the exemption is reduced proportionally and eventually eliminated at higher income levels. Taxpayers above the phase-out range receive no benefit from the personal exemption. The Rhode Island Division of Taxation publishes the current phase-out thresholds in its annual tax instructions.
How does Rhode Island's income tax compare to neighboring Massachusetts?
Rhode Island's top rate is 5.99% compared to Massachusetts's flat rate of 5% (with a 9% surtax on income above $1,000,000 under the Massachusetts 'millionaires tax'). Rhode Island's three-bracket structure means lower-income taxpayers pay 3.75%, which is lower than Massachusetts's flat 5%. However, Rhode Island's standard deduction ($10,100 single) is lower than Massachusetts uses, and Massachusetts exempts some income types that Rhode Island taxes. Overall, middle-income earners may pay similar effective rates in both states.
Official sources
- Rhode Island income tax rates applied to capital gains (tax year 2024): Rhode Island Division of Taxation, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. General information, not financial or tax advice. State-specific exclusions, if any, are set by the Rhode Island Division of Taxation.