Creates an additional tax rate of 3% on taxable income over $640,000 in 2026 dollars. Applies to tax years 2027 and thereafter and not retroactively.

Rhode Island High-Income Surcharge Tax Bill

This bill would create an additional 3% tax on the portion of a person's income that exceeds $640,000 (measured in 2026 dollars) in Rhode Island. This would be added on top of whatever income tax rate already applies to that income. The new tax would only take effect starting in the 2027 tax year, meaning it would not apply to any income earned before that point. The $640,000 threshold is anchored to 2026 dollar values, which likely means it could be adjusted over time to account for inflation.

This bill would only affect Rhode Island residents who earn more than $640,000 per year — a relatively small portion of the population. For those earners, only the income *above* that threshold would be subject to the extra 3% rate; income below $640,000 would continue to be taxed at the existing rates. For example, someone earning $700,000 would only pay the additional 3% on the $60,000 that exceeds the threshold, not on their entire income.

The bill has been introduced and referred to the House Finance Committee, where it will be reviewed before any further action is taken. At this stage, it has not been passed into law. If enacted, it would represent a change to Rhode Island's personal income tax structure by adding a higher rate specifically targeting top earners in the state.