Capital Gains Tax for Rhode Island (2026)
Rhode Island (RI) Key Facts
State Capital Gains Rate
5.99%
Taxed As
Ordinary income
Federal Rate Applies
Yes (0%, 15%, or 20%)
Long Term vs Short Term
Both taxed at state level
How This Calculator Works in Rhode Island
This calculator estimates your combined federal and Rhode Island capital gains tax. Enter your gain amount, holding period, and income to see your estimated tax.
Rhode Island Overview
Rhode Island taxes capital gains as ordinary income at up to 5.99%. Federal capital gains taxes also apply, with long-term rates of 0%, 15%, or 20% depending on income. The combined state and federal burden should be considered when planning asset sales or investment strategies.
How Rhode Island Compares
Rhode Island's capital gains rate of 5.99% compares to Massachusetts at 5% and Connecticut at 6.99%. State capital gains taxes significantly impact net investment returns.
| State | Top Rate | Notes |
|---|---|---|
| Massachusetts | 5% | Massachusetts has a capital gains rate of 5%. |
| Connecticut | 6.99% | Connecticut has a capital gains rate of 6.99%. |
Rhode Island's capital gains rate of 5.99% compares to a national average of approximately 5.04%. This is above the national average.
Tips for Rhode Island Residents
- 1Rhode Island taxes capital gains as ordinary income at up to 5.99%.
- 2Federal long-term gains (held 1+ year) are taxed at 0%, 15%, or 20%. Rhode Island's state tax applies on top of the federal rate.
- 3Hold investments over one year to qualify for lower federal long-term rates rather than ordinary income rates.
- 4Tax-loss harvesting—selling losing investments to offset gains—reduces both federal and Rhode Island state capital gains tax.
- 5Consider the combined federal + state rate when planning large asset sales. The total can exceed 29.8% for high earners.