What the rule says
Rhode Island imposes a state estate tax under R.I. Gen. Laws § 44-22-1 et seq. with one of the lowest thresholds in the country:
Third-lowest threshold nationally
The Rhode Island estate tax exclusion is approximately $1.77 million per individual (indexed annually for inflation; the exact figure for the year of the decedent's death applies).
RI's threshold is the third-lowest nationally:
| State | Exclusion | Portability | Top Rate | |-------|-----------|-------------|----------| | Federal | $13.99M (2026) | Yes | 40% | | Connecticut | $13.99M (federal-conformed) | Yes | 12% | | New York | $7.16M | No (cliff) | 16% | | Maine | ~$6.8M (indexed) | No | 12% | | Illinois | $4M | No | 16% | | Minnesota | $3M | No | 16% | | Massachusetts | $2M | No | 16% | | Rhode Island | ~$1.77M (indexed) | No | 16% | | Oregon | $1M | No | 16% |
Rhode Island indexes its threshold annually; the exact figure depends on the year of the decedent's death.
No portability
Rhode Island does not recognize federal portability of unused exclusion between spouses. Each spouse's $1.77M exclusion is used at that spouse's death; it cannot be transferred to the surviving spouse.
Tax rates
Rhode Island applies the tax progressively above the threshold. The top rate is 16% — same as MA, NY, MN, OR.
What this means in practice
Rhode Island's combination of low threshold + no portability produces:
- Many RI estates face state estate tax. With property values in many parts of Rhode Island and retirement accounts, many middle-class RI families exceed $1.77M. - Bypass trust planning is essential for RI married couples with $1.77M+ assets. Without portability, the first-deceased spouse's $1.77M exclusion is wasted unless captured through bypass trust planning. - Federal estate tax does NOT apply for most RI estates (federal threshold $13.99M is well above RI threshold). The RI-only gap is the planning focus.
For an estate of $3 million: - No federal estate tax (well below $13.99M) - Rhode Island estate tax on $1.23M of taxable estate at progressive rates up to 16% — approximately $150,000-$200,000
What you can do about it
For RI residents with substantial assets:
- Calculate RI estate tax exposure carefully. Many middle-class RI estates exceed $1.77M. - Use bypass trust planning for married couples to capture both spouses' exclusions. - Consider QTIP elections strategically. - Use lifetime gifting. RI has no state-level gift tax. - Consider charitable bequests. - Engage an RI estate tax advisor.
For non-RI residents considering relocation:
- Connecticut, NH, FL, TX, TN (no state estate tax or higher threshold) are common comparison destinations. - RI real estate remains taxable even for non-resident decedents.
Who this affects most
Rhode Island's estate tax framework is most consequential for:
- Married RI residents with combined assets above $1.77M (many middle-class RI families) - Long-time RI homeowners whose property values, retirement accounts, and other assets push them above the threshold - Estate planners coordinating RI-specific exposure with federal planning - Surviving spouses who would lose the deceased spouse's $1.77M exclusion without bypass trust planning
Rhode Island's combination of one of the lowest thresholds nationally and no portability makes proactive bypass trust planning the standard response.