RI Has 10th Highest Tax Burden in U.S. - Businesses Hit Hard

RI Has 10th Highest Tax Burden in U.S. - Businesses Hit Hard

The 2024 State Business Tax Climate Index issued by the Tax Foundation ranks Rhode Island as having the 10th highest tax burden in the United States — the state is ranked 41st overall.

The report unveils that businesses operating in Rhode Island face are especially hard hit.

Rhode Island is ranked 49th for having among the highest unemployment insurance taxes in the United States.

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Businesses in RI also face the 40th for its high corporate tax.

For individuals, the best ranking and the only one in the top half was RI’s ranking for sales tax.

The state came in at #22 — while RI has a high sales tax, its exemptions for food and clothes make it more competitive.

 

Here is what the Tax Foundation wrote about RI:

How does Rhode Island’s tax code compare? Rhode Island has a graduated individual income tax, with rates ranging from 3.75 percent to 5.99 percent. Rhode Island also has a flat 7.00 percent corporate income tax rate. Rhode Island has a 7.00 percent state sales tax rate and does not levy local sales taxes. Rhode Island’s tax system ranks 42nd overall on our 2023 State Business Tax Climate Index.

 

Rhode Island does rank above three other New England states.

Here is how the New England States ranked:

Connecticut #47

Massachusetts #46

Vermont #43

Rhode Island #41

Maine #34

New Hampshire #6

The state with the highest tax burden is New Jersey at #50, and the lowest is #1 ranked Wyoming.

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