Rhode Island Estate Tax: Rates, Deductions, and Filing Deadlines

The Rhode Island estate tax applies to estates worth more than $1,838,056 for deaths occurring in 2026, with rates that climb progressively to a top rate of 16 percent. The return and any payment are due nine months after the date of death. Because the state’s threshold sits far below the $15 million federal exemption for 2026, many estates that owe nothing to the IRS still owe something to Rhode Island.¹

The 2026 Threshold Is a Cliff, Not an Exemption

For deaths on or after January 1, 2026, an estate valued at or below $1,838,056 owes no Rhode Island estate tax. The threshold adjusts each January based on the Consumer Price Index for All Urban Consumers, measured as of September 30 of the prior year, rounded up to the nearest five dollars.²

The number behaves as a cliff. At exactly $1,838,056 the tax is zero. One dollar higher, and the whole estate runs through the rate table, offset only by a fixed credit. An estate that just crosses the line still produces a real bill, so careful valuation and full use of deductions matter more here than under systems with a true exemption.

How the Tax Is Calculated

Rhode Island uses the rate table from the former federal credit for state death taxes under 26 U.S.C. § 2011, frozen as it stood on January 1, 2001.² The executor takes the taxable estate, subtracts $60,000 to reach the “adjusted taxable estate,” and applies this progressive schedule:³

$40,000 to $90,000: 0.8%
$90,000 to $140,000: $400 plus 1.6% of the amount over $90,000
$140,000 to $240,000: $1,200 plus 2.4% of the amount over $140,000
$240,000 to $440,000: $3,600 plus 3.2% of the amount over $240,000
$440,000 to $640,000: $10,000 plus 4.0% of the amount over $440,000
$640,000 to $840,000: $18,000 plus 4.8% of the amount over $640,000
$840,000 to $1,040,000: $27,600 plus 5.6% of the amount over $840,000
$1,040,000 to $1,540,000: $38,800 plus 6.4% of the amount over $1,040,000
$1,540,000 to $2,040,000: $70,800 plus 7.2% of the amount over $1,540,000
$2,040,000 to $2,540,000: $106,800 plus 8.0% of the amount over $2,040,000
$2,540,000 to $3,040,000: $146,800 plus 8.8% of the amount over $2,540,000
$3,040,000 to $3,540,000: $190,800 plus 9.6% of the amount over $3,040,000
$3,540,000 to $4,040,000: $238,800 plus 10.4% of the amount over $3,540,000
$4,040,000 to $5,040,000: $290,800 plus 11.2% of the amount over $4,040,000
$5,040,000 to $6,040,000: $402,800 plus 12.0% of the amount over $5,040,000
$6,040,000 to $7,040,000: $522,800 plus 12.8% of the amount over $6,040,000
$7,040,000 to $8,040,000: $650,800 plus 13.6% of the amount over $7,040,000
$8,040,000 to $9,040,000: $786,800 plus 14.4% of the amount over $8,040,000
$9,040,000 to $10,040,000: $930,800 plus 15.2% of the amount over $9,040,000
Over $10,040,000: $1,082,800 plus 16.0% of the amount over $10,040,000

Once the table produces a figure, the executor subtracts the Rhode Island estate tax credit, which is $87,940 for 2026.¹ That credit is what creates the threshold: at exactly $1,838,056, the table generates a tax of $87,940 and the credit erases it. Above that, tax is owed on the margin. A $2 million estate ends up owing roughly $11,700. A $3 million estate owes around $83,000.

What Counts Toward the Estate

The gross estate covers everything the deceased owned or held an interest in at death: real estate in Rhode Island, bank and investment accounts, retirement accounts, vehicles, artwork, household goods, and other personal property. Life insurance proceeds are included when the deceased still held ownership rights in the policy.

Every asset is valued at fair market value as of the date of death. Real estate typically requires a professional appraisal. Publicly traded securities use closing prices from the date of death. Vehicles and collectibles may need independent valuations when the numbers are significant. The Division of Taxation can challenge valuations that look off, so documentation matters.

Deductions That Reduce the Taxable Estate

Because Rhode Island’s computation follows the federal framework, the same categories of deductions apply. Debts the deceased owed at death, funeral costs, and administration expenses like executor and attorney fees all come off the gross estate before the rate table applies.

Marital Deduction

Property passing to a surviving spouse qualifies for a marital deduction. Under the federal framework Rhode Island relies on, that deduction is generally unlimited, so assets left to the spouse can be excluded from the taxable estate.⁴ Any estate tax is postponed until the surviving spouse dies.

Charitable Deduction

Bequests to qualified charities are subtracted from the gross estate before the tax is calculated.

Orphan’s Deduction

Rhode Island allows a deduction for property passing to a minor child who has no surviving parent after the decedent’s death. The deduction equals $5,000 multiplied by the difference between 21 and the child’s age at the time of death. A five-year-old orphan generates an $80,000 deduction. This provision applies only when there is no surviving spouse.⁴

General Exemption

Rhode Island law also provides a flat $25,000 exemption from the net estate.⁴

No Portability Between Spouses

Federal law lets a surviving spouse inherit any unused portion of the deceased spouse’s exemption. Rhode Island does not. Each spouse has a separate $1,838,056 threshold for 2026, and whatever the first spouse to die doesn’t use is gone.¹

The consequences show up at the second death. If one spouse holds most of the assets and leaves everything to the survivor through the marital deduction, no tax is due at the first death. But when the survivor later dies holding $3.5 million, the estate faces a much larger bill than if each spouse’s threshold had been used. Credit shelter trusts and similar tools exist to address exactly this gap, and couples with combined assets near or above the threshold generally benefit from working with an estate planning attorney.

Filing the Return and Paying the Tax

An executor, administrator, or person in possession of the decedent’s real property must file a sworn statement with the Division of Taxation within nine months of the date of death. The statement discloses the value of the estate, claims and expenses paid, and the names and addresses of all heirs and beneficiaries.⁵

The main filing is Form RI-706, the Rhode Island Estate Tax Return.⁶ If more time is needed, Form RI-4768 requests an automatic six-month extension.⁷ The extension covers filing only. Payment is still due within the original nine months.

Payment goes by check or money order made out to the Rhode Island Division of Taxation, mailed with the return. After review, the Division issues an Estate Tax Closing Letter confirming the estate’s obligations have been satisfied.

Penalties and Interest for Missing the Deadline

Missing the nine-month deadline is costly. The Division charges interest at 12 percent per year on any unpaid balance, running from the original due date until the tax is paid. On top of that, a penalty of 0.5 percent per month accrues, capped at 25 percent of the tax owed.⁸ On a $50,000 bill left for a year, that adds $6,000 in interest and $3,000 in penalties. Filing Form RI-4768 before the deadline avoids the filing penalty even when funds aren’t yet in hand to pay.

The Automatic Lien on Real Property

Rhode Island places an automatic statutory lien on all real estate owned by a decedent at death.¹ The lien attaches whether or not the estate actually owes tax, and it blocks heirs from selling or refinancing until the Division confirms things are resolved.

For taxable estates, the lien is discharged after the Division reviews the return and issues the Closing Letter. For estates below the threshold, the executor or trustee files a sworn statement with the municipality where the property sits, confirming that no state or federal filing is required. Once that statement is recorded, the Division issues a formal discharge.⁵ The discharge is handled per property using Form T-77, one form for each parcel. Skipping this step is easy to do and painful to fix, because the unresolved lien can surface in a title search years later when someone tries to sell.

Non-Residents Who Owned Rhode Island Property

The tax reaches non-residents who owned real or tangible personal property in Rhode Island at death. A non-resident estate files the same Form RI-706 but completes the apportionment section (Part 4, Line 3) to figure the share owed to the state.⁷

The apportionment divides the value of Rhode Island real and tangible property by the total federal gross estate, then multiplies that fraction by the tax that would otherwise apply to the full estate. If Rhode Island property makes up 20 percent of the estate, the estate pays about 20 percent of the computed Rhode Island tax.² Only real property and tangible personal property in Rhode Island count in the numerator. Intangible assets like stocks and bank accounts don’t trigger the tax for non-residents.

1
Rhode Island Division of Taxation. ADV 2025-27 – Estate Updates
2
Rhode Island General Assembly. Rhode Island Code 44-22-1.1 – Tax on Net Estate of Decedent
3
eCFR. 26 CFR 20.2011-1 – Credit for State Death Taxes
4
Rhode Island General Assembly. Rhode Island Code 44-22-1 – Tax on Net Estate of Decedents
5
Rhode Island General Assembly. Rhode Island Code 44-23-1 – Statements Filed by Executors, Administrators, and Heirs-at-Law
6
State of Rhode Island Division of Taxation. Form RI-706 Estate Tax Return
7
Rhode Island Division of Taxation. Form RI-706 – Instructions
8
RI Division of Taxation. Estate Tax