Rhode Island Estate Tax 2026: The $1.84 Million Threshold and the Federal Gap
Rhode Island imposes a state estate tax on estates above $1,838,056 per person — the second-lowest exemption in the country, behind only Oregon's $1,000,000. The federal estate tax exemption, permanently raised to $15,000,000 by the One Big Beautiful Bill Act (OBBBA, July 2025), means that estates between $1.84M and $15M owe Rhode Island estate tax with zero federal estate tax exposure. A Providence couple with a South County cottage, combined retirement accounts, and a modest brokerage portfolio can cross the $1.84M line without recognizing the exposure. Rhode Island also offers no spousal portability — unused exemption is permanently lost at the first spouse's death unless a credit shelter trust is in place. And Rhode Island stands apart from nearly every other state with an unusual procedural rule: every estate, regardless of size, must file Form RI-706 and satisfy the Division of Taxation's lien-discharge process before Rhode Island real estate can transfer with clear title.
- Exemption threshold: $1,838,056 per decedent. Adjusted annually for CPI inflation.1
- Credit amount: $87,940 for 2026. The RI estate tax is computed by running the entire estate through the graduated rate table, then subtracting this credit. Estates below the $1,838,056 threshold owe $0 because the credit exceeds the tentative tax.1
- Rates: 0.8% to 16% graduated. The top 16% rate applies to estates above approximately $10,040,000. No cliff — unlike New York, Rhode Island does not impose a sudden spike for estates just above the threshold.2
- No portability: Rhode Island does not recognize the federal DSUE spousal portability election. Each Rhode Island estate receives one exemption; unused exemption at the first spouse's death is permanently lost.1
- All estates must file Form RI-706: Rhode Island requires every estate of a decedent dying on or after January 1, 2015, to file Form RI-706 — regardless of whether any tax is owed. Most states only require filing for taxable estates; Rhode Island does not.1
- Filing deadline: 9 months from date of death. Form RI-706, filed with the Rhode Island Division of Taxation.1
- No filing fee: The $50 filing fee was eliminated for deaths on or after January 1, 2025.1
- Statutory lien on RI real property: A lien automatically attaches to all RI real estate and securities at death. The lien must be discharged by the Division of Taxation (Forms T-77 and T-79) before title can transfer cleanly. This affects sales, refinancings, and distributions of RI property from the estate.1
- Interest and penalties: 12% annual interest + 0.5% per month penalty (maximum 25%) on unpaid tax from the 9-month due date.1
- No Rhode Island gift tax: Rhode Island imposes no standalone state gift tax. Annual exclusion gifts permanently remove assets from the RI estate tax base with no clawback.3
- No Rhode Island inheritance tax: Rhode Island has no separate inheritance tax. The estate tax is paid at the estate level before distributions to heirs.
- Federal gap: Federal exemption is $15,000,000 (OBBBA, July 2025, permanent). Estates between $1.84M and $15M owe RI estate tax with zero federal estate tax.
Why Rhode Island catches more families than they expect
The $1,838,056 threshold is not reserved for the wealthy. Rhode Island's coastal real estate values, combined with retirement accounts accumulated over a career and life insurance, can push a middle-class family over the threshold without any awareness of the exposure.
- A retired couple in South Kingstown with a waterfront cottage purchased in 1985 for $140,000, now worth $870,000. Add combined IRA and 401(k) balances of $680,000, a brokerage account of $200,000, and a primary residence in Cranston worth $420,000 — and the gross estate is $2.17M. That estate owes approximately $29,000 in Rhode Island estate tax and literally zero federal estate tax.
- A Newport homeowner whose property is appraised at $1.2M at death, with $400K in retirement accounts and $300K in life insurance payable to the estate — $1.9M gross estate, approximately $9,000 in RI estate tax, despite being far below any federal threshold.
- A Providence professional who retired at 65 with $900K in a 401(k), $500K in a brokerage account, a $600K home, and $250K of life insurance — $2.25M gross estate, approximately $33,000 in RI estate tax before any planning.
- A married couple with a combined estate of $3M who have all assets jointly titled. At the first spouse's death, everything passes to the survivor under the unlimited marital deduction — $0 RI estate tax at first death, but the deceased spouse's $1,838,056 exemption is permanently wasted. At second death: $3M estate, one exemption, approximately $99,000 in RI estate tax. A credit shelter trust at the first death could have sheltered up to $1,838,056 — potentially saving tens of thousands of dollars.
Rhode Island estate tax rate schedule and how to compute it
Rhode Island uses the "credit method." The tentative tax is calculated by running the entire estate value through the graduated rate table below. The 2026 credit ($87,940) is then subtracted. If the result is negative (i.e., the estate is below $1,838,056), the tax is $0. For estates above the threshold, the tax increases smoothly with no cliff.2
| Estate Value | Base Tax | Marginal Rate on Excess |
|---|---|---|
| $0 – $40,000 | $0 | 0% |
| $40,001 – $90,000 | $0 | 0.8% |
| $90,001 – $140,000 | $400 | 1.6% |
| $140,001 – $240,000 | $1,200 | 2.4% |
| $240,001 – $440,000 | $3,600 | 3.2% |
| $440,001 – $640,000 | $10,000 | 4.0% |
| $640,001 – $840,000 | $18,000 | 4.8% |
| $840,001 – $1,040,000 | $27,600 | 5.6% |
| $1,040,001 – $1,540,000 | $38,800 | 6.4% |
| $1,540,001 – $2,040,000 | $70,800 | 7.2% |
| $2,040,001 – $2,540,000 | $106,800 | 8.0% |
| $2,540,001 – $3,040,000 | $146,800 | 8.8% |
| $3,040,001 – $3,540,000 | $190,800 | 9.6% |
| $3,540,001 – $4,040,000 | $238,800 | 10.4% |
| $4,040,001 – $5,040,000 | $290,800 | 11.2% |
| $5,040,001 – $6,040,000 | $402,800 | 12.0% |
| $6,040,001 – $7,040,000 | $522,800 | 12.8% |
| $7,040,001 – $8,040,000 | $650,800 | 13.6% |
| $8,040,001 – $9,040,000 | $786,800 | 14.4% |
| $9,040,001 – $10,040,000 | $930,800 | 15.2% |
| Over $10,040,000 | $1,082,800 | 16.0% |
How to use: Locate your estate value in the table. Tax = base tax + ((estate value − bracket floor) × marginal rate) − $87,940 credit. If the result is negative, tax = $0. The threshold ($1,838,056) is the estate value where the tentative tax exactly equals the credit. For precise computation use the Form RI-706 instructions from the Rhode Island Division of Taxation.1 2
Approximate Rhode Island estate tax by estate size — 2026
| Gross Estate | Approx. RI Estate Tax | Effective Rate | Federal Estate Tax |
|---|---|---|---|
| $1,838,056 | $0 | 0% | $0 |
| $2,000,000 | ~$16,000 | 0.8% | $0 |
| $2,500,000 | ~$56,000 | 2.2% | $0 |
| $3,000,000 | ~$99,000 | 3.3% | $0 |
| $4,000,000 | ~$199,000 | 5.0% | $0 |
| $5,000,000 | ~$310,000 | 6.2% | $0 |
| $7,500,000 | ~$625,000 | 8.3% | $0 |
| $10,000,000 | ~$989,000 | 9.9% | $0 |
| $15,000,000 | ~$1,788,000 | 11.9% | $0 (OBBBA $15M federal exemption) |
| $20,000,000 | ~$2,588,000 | 12.9% | Federal tax applies on $5M excess |
Computed using the 2026 rate table and $87,940 credit. Actual RI estate tax depends on allowable deductions (marital, charitable, debts, mortgages, administration expenses), asset composition, and Form RI-706 methodology. These are approximate pre-deduction figures. Consult the RI Division of Taxation and an estate planning attorney for precision.
The federal–Rhode Island estate tax gap
| Level | 2026 Exemption | Notes |
|---|---|---|
| Federal estate tax | $15,000,000 per person | Permanently set by OBBBA (July 2025); spousal portability available; inflation-indexed |
| Rhode Island estate tax | $1,838,056 per person | CPI-indexed annually; no portability; credit method (no cliff) |
| The gap | ~$13.16 million per person | Estates in this range owe RI estate tax with zero federal estate tax |
Because the federal exemption is $15M per person (and $30M per couple with portability), virtually every Rhode Island family that owes RI estate tax owes zero federal estate tax. All planning focus must be on the Rhode Island-specific exposure. The federal Form 706 may still be worth filing at first death to preserve the federal portability election — even though it provides no help against RI estate tax, it preserves the surviving spouse's option to use both federal exemptions against potential future federal exposure.
What assets are included in the Rhode Island gross estate
| Asset Type | Included in RI Taxable Estate? | Notes |
|---|---|---|
| Rhode Island real estate | Yes | Date-of-death FMV; subject to statutory lien until discharged via Forms T-77/T-79; step-up basis under IRC §1014 still applies to heirs regardless of estate tax |
| Non-RI resident decedent with RI real estate | Yes — RI-situs property only | RI imposes estate tax on RI real property of non-residents, prorated to the share of RI property in total gross estate; out-of-state residents with RI vacation property need to account for this |
| RI-domiciled decedent — out-of-state real estate | Yes, in the RI gross estate | A RI resident's worldwide estate is included; the situs state may also impose its own estate tax on property located there |
| Brokerage and investment accounts | Yes | Date-of-death FMV; heirs receive step-up basis under IRC §1014 |
| IRAs and 401(k)s | Yes | Full balance included; beneficiaries additionally owe income tax on distributions over the 10-year rule — a "double tax" problem for RI estates where a large IRA drives the estate over $1.84M |
| Life insurance (estate as beneficiary) | Yes | IRC §2042; proceeds included in gross estate |
| Life insurance (named individual beneficiary) | Excluded if no incidents of ownership | If held in an ILIT for 3+ years before death with no retained incidents of ownership, excluded under IRC §2042 |
| Revocable living trust assets | Yes | Included under IRC §2038; avoids RI probate but does not reduce RI estate tax |
| Jointly held assets (JTWROS with spouse) | 50% | RI is a common-law state; 50% of marital joint property is in the decedent's estate |
| Jointly held assets (JTWROS with non-spouse) | 100% unless co-tenant's contribution is documented | Full value included unless the executor proves the other joint tenant's original purchase contribution |
Rhode Island is a common-law state — only half the step-up basis
Rhode Island is not a community property state. For jointly-owned assets between spouses, only the decedent's half receives a step-up in cost basis at death under IRC §1014. The surviving spouse's 50% retains its original cost basis.
- Rhode Island (common law): Married couple purchased a Westerly vacation property in 1990 for $180,000, held as joint tenants. Current value: $680,000. At first spouse's death, only the decedent's 50% ($340K value, $90K original basis) steps up to $340K FMV. The surviving spouse still holds their original $90K basis in their 50% share. If they sell: capital gain on survivor's half = $250K. At 23.8% combined federal LTCG + NIIT: ~$59,500 in tax.
- Washington state (community property): Both halves step up to date-of-death FMV. If the surviving spouse sells immediately: $0 capital gain on both halves — the ~$59,500 tax is entirely avoided.
See the Step-Up Basis Complete Guide and the Step-Up Basis Tax Savings Calculator for how the basis reset affects your specific inherited assets.
No portability — and the credit shelter trust solution
The federal estate tax allows the surviving spouse to carry forward the deceased spouse's unused exemption (the "DSUE" election, filed via IRS Form 706). Under OBBBA, a married couple has a combined $30M federal exemption with portability.
Rhode Island does not recognize portability.1 Each RI estate receives exactly one $1,838,056 exemption. If the first spouse leaves everything outright to the surviving spouse, no RI estate tax is due at first death under the unlimited marital deduction — but the first spouse's exemption is permanently wasted. At second death, the combined estate faces only one exemption.
- Husband dies in 2026; estate = $2M (RI home $600K + 401(k) $700K + brokerage $400K + life insurance $300K). Everything passes to wife outright → $0 RI estate tax at his death (marital deduction).
- Wife now has approximately $3.6M (her pre-existing $1.6M + husband's $2M passed to her, plus subsequent growth).
- At her death: $3.6M estate, one $1,838,056 RI exemption → approximately $135,000 in RI estate tax.
- A credit shelter trust at husband's death — holding $1,838,056 for wife's benefit — could have significantly reduced the second-death estate tax, depending on trust distributions and growth. The trust assets pass to children outside the wife's taxable estate.
Credit shelter trusts in Rhode Island
At the first spouse's death, assets equal to the RI exemption ($1,838,056 in 2026) are placed in a credit shelter (bypass) trust rather than passing outright to the surviving spouse. The trust can benefit the surviving spouse during their lifetime — through income distributions and principal access under a HEMS standard or other distribution standards — while keeping those assets outside the survivor's RI estate at second death.
Because the RI exemption is only $1.84M, the credit shelter capacity is smaller than in states like Illinois ($4M) or New York ($7.35M). For RI couples with combined estates in the $2M–$5M range, the credit shelter trust is the most effective and often essential planning tool. Any estate plan drafted under older exemption amounts may need its funding formula reviewed — and updated — by a RI estate planning attorney.
Filing requirements — every estate must file
Who must file
Rhode Island requires every estate of a decedent dying on or after January 1, 2015, to file Form RI-706 — regardless of whether any estate tax is owed.1 Most states only require filing for estates above the threshold. In Rhode Island, even an estate worth $600,000 — well below the $1,838,056 threshold — must file Form RI-706 to establish that no tax is owed and to begin the lien discharge process for any RI real property.
Deadline: 9 months from date of death
Form RI-706 and any tax payment are due 9 months from the date of death.1 A 6-month extension of time to file is available via Form RI-4768 — but the extension does not extend the time to pay. Tax owed accrues interest at 12% per year from the original 9-month deadline, plus a penalty of 0.5% per month up to a maximum of 25%.
Clearing the statutory lien on Rhode Island real estate
Rhode Island automatically places a statutory lien on all RI real estate and securities as of the date of death.1 The lien prevents clean title transfer until discharged by the Division of Taxation. Two forms clear it:
- Form T-77 — discharges the lien on real property.
- Form T-79 — discharges the lien on securities.
These are processed by the RI Division of Taxation after Form RI-706 is filed and any tax is paid (or it is established that no tax is owed). Executors selling or transferring inherited Rhode Island real estate — even a non-taxable estate — must address the lien early in estate administration. Waiting until the 9-month deadline can delay a real estate closing that buyers and heirs expect to complete sooner.
No Rhode Island gift tax — annual gifting reduces the estate
Rhode Island imposes no standalone state gift tax.3 Annual exclusion gifts permanently remove assets from the RI estate tax base. For 2026, the federal annual gift exclusion is $19,000 per recipient ($38,000 for a married couple using gift splitting, per IRS Rev. Proc. 2025-67).
- Annual exclusion gifts: A married RI couple with two adult children can gift $19,000 × 2 × 2 = $76,000 per year with no federal gift tax return required and no Rhode Island estate tax consequence.
- Over 10 years: $760,000 permanently removed from the RI taxable estate. For a couple with a $2.5M combined estate ($662K above the threshold), a sustained gifting program can materially reduce or eliminate RI estate tax exposure.
- 529 plan superfunding: $95,000 per beneficiary (5 years of annual exclusion, elected on IRS Form 709) removes a large lump sum from the RI estate immediately — useful for grandchildren's education funding that simultaneously reduces the RI taxable estate.
- No RI gift-tax clawback: Unlike New York (3-year clawback), Rhode Island does not add lifetime gifts back to the RI gross estate. Annual exclusion gifts made at any time before death are permanently out of the RI estate base.
Planning strategies to reduce Rhode Island estate tax
Rhode Island's $1.84M threshold, no portability, and $13M+ federal gap create a planning problem that is entirely RI-specific — there is no federal estate tax to worry about for most families. These strategies work best when implemented years before death.
1. Credit shelter trusts — foundational for married RI couples
The single most powerful RI estate planning tool for couples with a combined estate above $1.84M. Placing the RI-exempt amount into a credit shelter trust at first death — rather than leaving it outright to the survivor — can reduce the combined estate tax at second death substantially. Review existing estate planning documents; funding formulas from older plans may capture the wrong amount.
2. Systematic annual gifting
No RI gift tax means there is no downside to gifting down the RI estate. A married couple with two children can remove $76,000/year ($19K × 2 × 2) with no filing requirement. Over a decade: $760,000 out of the RI estate. For estates modestly above $1.84M, a 5–10 year gifting program can push the estate below the RI threshold entirely.
3. Irrevocable Life Insurance Trusts (ILITs)
Life insurance owned by the decedent is included in the RI gross estate under IRC §2042. Transferring an existing policy to an ILIT removes the death benefit from the RI estate — but the decedent must survive the transfer by 3 years (IRC §2035). An ILIT holding a survivorship (second-to-die) policy can be sized to fund anticipated RI estate tax without forcing a sale of illiquid RI coastal real estate or other assets at an inopportune time.
4. Domicile change to a no-estate-tax state
Rhode Island residents who legally change their domicile to New Hampshire, Florida, South Dakota, or another state with no estate tax can eliminate RI estate tax exposure on all personal property (IRAs, brokerage accounts, financial accounts). Important caveat: Rhode Island-situs real estate remains subject to RI estate tax even after a domicile change — RI taxes real property of non-resident decedents. A domicile change eliminates the RI exposure on non-real-estate assets but does not eliminate it on physical RI property.
5. Qualified Personal Residence Trusts (QPRTs) for RI real estate
For families with valuable RI coastal or vacation property, a QPRT allows the owner to transfer the property to a trust while retaining the right to occupy it for a fixed term. The taxable gift is discounted from full property value (reflecting the retained use interest). The property exits the RI estate if the grantor survives the term. A South County waterfront property worth $900,000 may be transferred via QPRT with a taxable gift value of $500,000–$600,000 depending on applicable interest rates and the selected retention term.
6. Charitable strategies for estates near the threshold
Charitable bequests reduce the RI taxable estate dollar-for-dollar. For an estate at $2.1M — $262K above the threshold — a charitable bequest of $300,000 eliminates the RI estate tax entirely while accomplishing philanthropic goals. A charitable remainder trust (CRT) funded with appreciated assets provides income to the donor, avoids capital gains tax on the transfer, and reduces the RI gross estate at death. For inherited IRA planning, naming a charity as partial IRA beneficiary removes that IRA balance from the RI gross estate via the charitable deduction. See Charitable Giving from an Inheritance for detailed strategy.
How Rhode Island compares to other state estate taxes
| State | 2026 Exemption | Max Rate | Portability | Notable Feature |
|---|---|---|---|---|
| Oregon | $1,000,000 | 16% | No | Lowest exemption in country; no cliff |
| Rhode Island | $1,838,056 | 16% | No | Second-lowest; all estates must file; lien on RI real property; CPI-indexed |
| Massachusetts | $2,000,000 | 16% | No | No cliff; $2M threshold unchanged since 2023 |
| Minnesota | $3,000,000 | 16% | No | Farm/business exclusion (additional $2M); no inflation indexing |
| Illinois | $4,000,000 | 16% | No | Unchanged since 2010; graduated from 0.8% |
| Maryland | $5,000,000 | 16% | No | Only state with both estate + inheritance tax |
| New York | $7,350,000 | 16% | No | Cliff: 105%+ of exemption = entire estate taxed from $0 |
| Federal (all states) | $15,000,000 | 40% | Yes | Permanent (OBBBA, July 2025); inflation-indexed; spousal portability |
Legislative watch: RI H8190
Rhode Island House Bill H8190 (2026 Regular Session) proposes raising the RI estate tax exemption to $5,000,000 starting January 1, 2027; $7,500,000 starting January 1, 2029; and $10,000,000 starting January 1, 2031.4 The bill has not been enacted as of June 2026. Rhode Island has periodically proposed estate tax reform without passing it; the current CPI-indexed threshold has not been legislatively raised in many years. Estate plans should be structured for current law. If H8190 passes, the higher exemption is a favorable development — credit shelter trusts and gifting programs are not harmed if the threshold increases.
What Rhode Island estate tax means if you're an heir
- You do not pay the RI estate tax personally. The executor pays it from estate assets before making distributions. A $3M RI estate may owe approximately $99,000 in RI estate tax; that amount is deducted from the estate before your distribution, not billed to you individually.
- Your expected inheritance may be less than the gross estate suggests. A $2M estate owes ~$16,000; a $3M estate ~$99,000; a $5M estate ~$310,000. These are pre-deduction estimates, but they give a sense of scale.
- Every estate must file Form RI-706 — even small ones. Even if the estate is $800,000 — well below the $1,838,056 threshold — Form RI-706 must be filed. If you're a beneficiary anticipating a faster distribution, be aware that the RI filing process and lien discharge can add time even for non-taxable estates.
- Rhode Island real estate cannot transfer with clear title until the lien is discharged. If you are inheriting RI real property — whether a primary home, rental, or vacation cottage — the executor must obtain a lien discharge (Form T-77) from the Division of Taxation before title can transfer cleanly. Plan for this in your timeline if you intend to sell or refinance.
- Step-up in cost basis applies regardless of estate tax. Your inherited assets receive a new cost basis equal to the date-of-death fair market value under IRC §1014, separately from and regardless of any RI estate tax paid. The estate tax and the basis reset are entirely independent mechanisms. See Step-Up Basis Complete Guide and the Step-Up Basis Calculator.
- IRAs face double taxation in RI estates. The full IRA balance is counted in the RI gross estate (contributing to estate tax) AND you owe income tax on every distribution over the 10-year rule. For RI estates where a large IRA is the main driver over $1.84M, the combined RI estate + income tax burden is significant. See Inherited IRA 10-Year Rule and the Drawdown Optimizer.
- Watch the 9-month deadline. Form RI-706, payment, and the lien discharge process all tie to a 9-month window from the date of death. Executors who delay face 12% annual interest plus up to 25% penalties — and any pending RI real estate transactions may be held up waiting on the lien discharge.
Frequently asked questions
My parent died in Rhode Island with a $1.4M estate. Is there RI estate tax? Do they still have to file anything?
No RI estate tax is owed — $1.4M is below the $1,838,056 threshold. However, Form RI-706 must still be filed, because Rhode Island requires all estates of decedents dying on or after January 1, 2015, to file — regardless of taxable status. The filing establishes that no tax is owed and triggers the lien discharge process for any RI real property in the estate. There is no filing fee for deaths on or after January 1, 2025.
My parent died in Rhode Island with a $2.5M estate. How much RI estate tax is owed?
Approximately $56,000, based on the 2026 rate table and $87,940 credit, before deductions. Allowable deductions — debts, mortgages, administration expenses, any charitable bequests, and the marital deduction if the estate passes to a surviving spouse — reduce the taxable estate and the final tax owed. The estate has 9 months from date of death to file Form RI-706 with the RI Division of Taxation and pay any amount due.
My parents have a combined $3M estate. How do they reduce RI estate tax?
A credit shelter trust at the first spouse's death is the most effective tool. Without planning, the survivor inherits the full $3M; at second death, one $1.838M exemption applies, and RI estate tax runs approximately $99,000. With a properly structured credit shelter trust at first death — holding $1.838M for the survivor's benefit — the second-death taxable estate may be significantly reduced depending on trust distributions and growth. This requires estate planning before the first death; most corrections after the first spouse has already died are not available retroactively. Consistent annual gifting toward the $1.84M threshold is the other primary tool, especially for couples with time to reduce the estate before either death.
I live in Connecticut but own a vacation property in Narragansett. Will my estate owe RI tax?
Possibly. Rhode Island imposes estate tax on RI-situs real property owned by non-residents, prorated based on the ratio of RI property to the total gross estate. If you are a Connecticut resident and the Narragansett property is a meaningful fraction of your estate, your estate may owe RI estate tax on the prorated RI property value — even if your Connecticut estate owes no Connecticut estate tax (Connecticut now tracks the federal $15M exemption). Form RI-706 must be filed, and the statutory lien on the RI property must be discharged regardless of the decedent's domicile. A Rhode Island estate attorney should evaluate any estate with RI-situs real property owned by a non-resident decedent.
Does Rhode Island have a gift tax?
No. Rhode Island has no standalone state gift tax, and no clawback of lifetime gifts for RI estate tax purposes (unlike New York's 3-year clawback). Annual exclusion gifts ($19,000 per recipient in 2026) permanently remove assets from the RI estate base. Gifts above the annual exclusion require a federal Form 709 and use the federal lifetime exemption ($15M per person under OBBBA), but no separate RI gift tax applies.
Will H8190 raise the RI estate tax exemption?
RI House Bill H8190 (2026) proposes raising the exemption to $5M (2027), $7.5M (2029), and $10M (2031). It has not been enacted as of June 2026. Rhode Island has proposed estate tax reform multiple times without enacting it. Plan for current law ($1,838,056); treat a future exemption increase as a possible upside. An estate plan structured for $1.84M today will also work correctly if the exemption rises — credit shelter trusts and gifting programs remain valid under any higher threshold.
Does Rhode Island have an inheritance tax in addition to the estate tax?
No. Rhode Island does not have a separate inheritance tax. The RI estate tax is paid by the estate before any distributions — not assessed against individual beneficiaries based on their relationship to the decedent. As a beneficiary you do not personally owe Rhode Island tax on what you receive. See Inheritance Tax by State for a national comparison of which states impose inheritance taxes (New Jersey, Pennsylvania, Maryland, Nebraska, and Kentucky for non-family beneficiaries) versus estate taxes.
Sources
- Rhode Island Division of Taxation. For decedents dying on or after January 1, 2026: threshold $1,838,056; credit $87,940; Form RI-706 required for all estates (decedents dying on/after 1/1/2015) regardless of size; 9-month filing and payment deadline; 6-month extension available (Form RI-4768) — tax still due at 9 months; no filing fee for deaths on/after 1/1/2025; 12% annual interest + 0.5%/month penalty (max 25%); statutory lien on RI real property discharged via Forms T-77 (real property) and T-79 (securities); no portability. Rhode Island Advisory ADV 2025-27 (December 2025). RI Division of Taxation — Estate Tax. RI Division of Taxation — Estate Tax Forms. RI Advisory ADV 2025-27.
- Rhode Island estate tax rate schedule (0.8%–16% graduated, credit method, no cliff); rate table from SmartAsset citing Form RI-706 instructions. SmartAsset — Rhode Island Estate Tax (2026). EstateTaxByState.com — Rhode Island (2026).
- Tax Foundation, 2026 State Estate and Inheritance Taxes: Rhode Island imposes no standalone state gift tax; no gift clawback for RI estate tax purposes. Federal annual exclusion $19,000 per recipient per IRS Rev. Proc. 2025-67. Tax Foundation — State Estate and Inheritance Taxes 2026.
- Rhode Island House Bill H8190 (2026 Regular Session): proposed exemption increases to $5M (2027), $7.5M (2029), $10M (2031). Not enacted as of June 2026. LegiScan — RI H8190 (2026).
Rhode Island estate tax threshold ($1,838,056), credit ($87,940), rates (0.8%–16%), filing requirements (Form RI-706, all estates, 9-month deadline, RI Division of Taxation), no portability, statutory lien (Forms T-77/T-79), no RI gift tax verified against RI Advisory ADV 2025-27, SmartAsset, EstateTaxByState.com, Tax Foundation, and LegiScan (H8190). Federal values per IRS Rev. Proc. 2025-67 ($19,000 annual exclusion 2026) and OBBBA (One Big Beautiful Bill Act, July 2025; $15M permanent federal exemption per person). Step-up basis rules per IRC §1014. Estate tax calculations are approximate and do not account for estate-specific deductions. Confirm against RI Form RI-706 instructions for precision. Last reviewed June 2026.
Get matched with an advisor who understands Rhode Island estate planning
Rhode Island's $1,838,056 estate tax threshold — one of the two lowest in the country — quietly exposes Providence and coastal RI families to a significant state-only estate tax liability with zero federal exposure. A couple with an East Greenwich home, combined retirement accounts, and life insurance may be over the $1.84M line without realizing it. Without a credit shelter trust, the first spouse's exemption is permanently lost, and estate tax that could have passed to their children goes instead to the RI Division of Taxation. A fee-only financial advisor specializing in inheritance and estate planning can model your Rhode Island estate tax exposure under current law, evaluate whether your existing estate plan captures both spouses' RI exemptions, coordinate with your estate attorney on credit shelter trust funding, and structure a systematic gifting program to reduce the RI taxable estate over time.