AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX

SB 329 creates a new 3% tax rate on Rhode Island taxable income exceeding $625,000 (adjusted for inflation starting in 2025 dollars). This additional tax applies only to high-income earners - specifically individuals and households with income above that threshold - and takes effect for tax years beginning in 2026 or later, with no retroactive application. The bill amends Rhode Island’s existing personal income tax code to add this rate to the current progressive brackets, which already tax higher incomes at up to 9.9%. It directly affects residents and nonresidents with significant earnings, while leaving lower-income tax brackets unchanged. The measure is currently pending further study after a committee recommended holding it for additional review.