RI marginal income tax rate in 2026 ranks mid-range

PROVIDENCE, R.I. — A new look at top marginal income tax rates by state in 2026 shows Rhode Island falls in the middle of the pack, far below the highest-tax states but still not near the bottom as there are 9 states without a state income tax.

According to recent data highlighted by Visual Capitalist, Rhode Island’s top marginal income tax rate is 5.99%, placing it in a moderate range compared to other states.

How Rhode Island compares

Rhode Island uses a graduated income tax system, meaning higher earnings are taxed at higher rates. The state’s top rate of 5.99% applies to higher-income brackets. 

That rate is:

• Lower than neighboring high-tax states like New York (10.9%) and New Jersey (over 10.8%) 
• Higher than flat-tax or low-tax states like Pennsylvania (3.07%)

Highest-tax states in the country

The report shows the highest marginal tax rates are concentrated in coastal and northeastern states.

• California leads the nation at 13.3%
• Hawaii follows in second at 11%
• New York in third at 10.9%

These higher rates are often tied to higher costs of living and larger state budgets.

What “top marginal rate” means

A top marginal rate does not apply to all income. Instead, it only applies to earnings above a certain threshold.

That means most taxpayers pay lower effective rates on the majority of their income, even in higher-tax states.

What it means for Rhode Islanders

Rhode Island’s position in the middle reflects a balance between revenue generation and competitiveness.

However, when combined with rising housing and living costs, even a mid-range tax rate can still feel burdensome for residents.

Experts note that overall tax burden depends on multiple factors, including property taxes, sales taxes and cost of living, not just income tax rates.