Increases the net taxable estate exemption to fifteen million dollars ($15,000,000) for deaths that occur on or after January 1, 2027.

Rhode Island Estate Tax Exemption Increase

This bill would raise the amount of money that can be passed on after someone dies before Rhode Island's estate tax kicks in. Currently, Rhode Island taxes estates valued above a certain threshold. If this bill passes, starting January 1, 2027, only estates worth more than $15 million would be subject to the state's estate tax. Estates valued below that amount would owe nothing in state estate taxes.

This change would primarily benefit wealthy Rhode Islanders and their heirs. Right now, Rhode Island's estate tax exemption is significantly lower than $15 million, meaning some families with moderately large estates — such as those who own valuable property or businesses — currently pay this tax. By raising the exemption to $15 million, far fewer estates would qualify for taxation, leaving more inherited wealth in the hands of beneficiaries rather than the state.

The tradeoff is that Rhode Island's state government would collect less revenue from estate taxes, since fewer estates would be taxed. This could affect the state's budget and its ability to fund public services, depending on how many estates currently fall between the existing exemption and the new $15 million threshold. The bill has been introduced and referred to the House Finance Committee, where lawmakers will review it before deciding whether to advance it further.