Increase the net taxable estate exemption to $3,600,000 on January 1, 2027. This act would also increase the exemption by $1,000,000 on January 1, 2028 and every year thereafter until this section and the tax would sunset and expire on January 1, 2033

Rhode Island Estate Tax Exemption Bill

This bill proposes changes to Rhode Island's estate tax, which is a tax on the value of a person's assets (such as property, savings, and investments) after they die. Currently, Rhode Island taxes estates worth more than a certain amount before that wealth is passed on to heirs. This bill would raise the threshold at which that tax kicks in, meaning fewer estates would be subject to the tax. Starting January 1, 2027, the exemption would increase to $3.6 million — so only estates worth *more* than that amount would be taxed. Then, beginning in 2028, the exemption would grow by an additional $1 million each year.

The bill also includes a "sunset" provision, meaning the entire estate tax — and the law governing it — would automatically expire on January 1, 2033. After that date, unless the state legislature acts again, Rhode Island's estate tax would no longer exist.

This bill primarily affects people who expect to leave behind significant assets when they die, as well as their family members or other beneficiaries who would inherit those assets. Wealthier estates would see the most direct benefit, as they would either owe less in taxes or eventually owe nothing if the tax sunsets as planned. The change could also affect Rhode Island's state budget, since estate tax revenue would likely decrease over time as fewer estates qualify for taxation.

The bill has been introduced and referred to the Senate Finance Committee, where it will be reviewed before any further action is taken.