Rhode Island LLC Taxes Explained: Income Tax + $400 Minimum (2026)
For tax year2026, RI’s personal brackets are 3.75% through $82,050, 4.75% from $82,050 through $186,450, and 5.99% above $186,450 of taxable income. The estimator applies these rates before personal standard deductions/exemptions and excludes federal income tax, credits, PTE elections and a full return calculation. The RI Division of Taxation lists a $400 annual minimum for LLCs, LLPs, LPs and S corporations, including disregarded LLCs, subject to applicable filing rules; general partnerships are excepted from this specific minimum. Use the return appropriate to the entity’s tax classification. A corporate election also requires separate review of the 7% corporate-tax/minimum rules.
For tax year2026, RI’s personal brackets are 3.75% through $82,050, 4.75% from $82,050 through $186,450, and 5.99% above $186,450 of taxable income. The estimator applies these rates before personal standard deductions/exemptions and excludes federal income tax, credits, PTE elections and a full return calculation. The RI Division of Taxation lists a $400 annual minimum for LLCs, LLPs, LPs and S corporations, including disregarded LLCs, subject to applicable filing rules; general partnerships are excepted from this specific minimum. Use the return appropriate to the entity’s tax classification. A corporate election also requires separate review of the 7% corporate-tax/minimum rules.
- State income tax
- Graduated, tops out at 5.99%
- Mandatory minimum tax
- $400 applicable annual entity minimum
- Applies even to SMLLCs?
- Yes
- Sales tax
- Flat 7% — no local add-ons
- Nonresident member withholding
- Separate from elective 5.99% PTE tax
- Corporate rate (if elected)
- 7% or $400 minimum, greater
The Tax Layers in Rhode Island
Federal: income + self-employment tax
Pass-through profits hit your 1040 at your federal bracket, plus 15.3% SE tax on 92.35% of net profit.
Rhode Island state income tax: graduated, tops out at 5.99%
For tax year2026, RI’s personal brackets are 3.75% through $82,050, 4.75% from $82,050 through $186,450, and 5.99% above $186,450 of taxable income. The estimator applies these rates before personal standard deductions/exemptions and excludes federal income tax, credits, PTE elections and a full return calculation.
The $400 minimum tax — separate and mandatory
The RI Division of Taxation lists a $400 annual minimum for LLCs, LLPs, LPs and S corporations, including disregarded LLCs, subject to applicable filing rules; general partnerships are excepted from this specific minimum. Use the return appropriate to the entity’s tax classification. A corporate election also requires separate review of the 7% corporate-tax/minimum rules.
Sales tax: flat 7% (if applicable)
No local add-ons anywhere in the state. See Step 7.
Estimate Your Combined Bill
Rhode Island LLC Tax Estimator
Limited 2026 sole-proprietor rate illustration before personal standard deductions/exemptions; includes a $400 LLC minimum scenario, excludes federal income tax and PTE elections.
The $400 Minimum Tax — Every Year, Every LLC
The RI Division of Taxation lists a $400 annual minimum for LLCs, LLPs, LPs and S corporations, including disregarded LLCs, subject to applicable filing rules; general partnerships are excepted from this specific minimum. Use the return appropriate to the entity’s tax classification. A corporate election also requires separate review of the 7% corporate-tax/minimum rules.
Nonresident Member Withholding
Eligible pass-through entities may elect the 5.99% Rhode Island PTE tax. Owners generally take their pro-rata credit and the related RI income-addition modification; do not count the credit without the addition. This election is distinct from nonresident withholding (generally 5.99% for individual owners and 7% for corporate owners, subject to exceptions). Review current SchedulePTE instructions and eligibility.
The S-Corp Question
An eligible S election changes federal treatment and generally requires reasonable compensation and payroll. There is no automatic savings guarantee. The RI $400 minimum still needs review; elective PTE tax and nonresident withholding are separate state issues.
Your Rhode Island Tax Calendar
| Date | What's Due |
|---|---|
| Apr 15 / Jun 15 / Sep 15 / Jan 15 | Quarterly estimated taxes — federal and Rhode Island, on pass-through profit |
| Feb 1 – May 1 | Annual report to the Secretary of State ($50) |
| Mar 15 (calendar year) | Form RI-1065 + $400 minimum tax to the Division of Taxation |
| Apr 15 | Form 1040 + Form RI-1040 |
| Monthly/Quarterly | Sales tax returns via the Division of Taxation, if applicable |
Budget for the applicable entity minimum, personal tax and report fee separately. Confirm the correct return, tax year and election before relying on any estimate.
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2026 brackets and elective PTE tax
For tax year2026, RI’s personal brackets are 3.75% through $82,050, 4.75% from $82,050 through $186,450, and 5.99% above $186,450 of taxable income. The estimator applies these rates before personal standard deductions/exemptions and excludes federal income tax, credits, PTE elections and a full return calculation. Eligible pass-through entities may elect the 5.99% Rhode Island PTE tax. Owners generally take their pro-rata credit and the related RI income-addition modification; do not count the credit without the addition. This election is distinct from nonresident withholding (generally 5.99% for individual owners and 7% for corporate owners, subject to exceptions). Review current SchedulePTE instructions and eligibility.
Rhode Island LLC — FAQ
Ahmad Adil is the founder and CEO of LLC School. For filing and ongoing compliance, confirm the requirements with the responsible state agency. This is educational information, not legal or tax advice.
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