The inheritance tax in Rhode Island no longer exists. Today, the state uses an estate tax instead, applied to the value of an estate before assets go to beneficiaries. That means heirs don't pay a separate state tax on what they receive.
Rhode Island once used a patchwork of "estate and transfer" levies. Over time, lawmakers repealed many transfer-style provisions and modernized the code under Chapter 44-22. This left a stand-alone estate tax framework in place. You can see this evolution in the statute index, where multiple former sections are marked "repealed."
A big push came from federal changes. In 2001, Congress phased out the federal credit for state "pick-up" taxes. Many states, including Rhode Island, "decoupled" by adopting their own estate tax tied to the federal rules as they existed on January 1, 2001. Rhode Island's law at §44-22-1.1 reflects that linkage and defines how the state estate tax works today. In short: the state chose an estate tax, not an inheritance tax.
Why the State Chose to Eliminate It
Ending the inheritance tax simplified compliance and aligned Rhode Island with the federal approach, which looks at the total estate rather than each heir's share. It also avoided the complexity of different rates by relationship (a hallmark of inheritance systems) and made administration more predictable.
What No Inheritance Tax in Rhode Island Means for Families
If a Rhode Island resident passes, only the estate is evaluated for state tax. Beneficiaries don't file a separate state inheritance return. The Division of Taxation updates the estate tax threshold annually for inflation—useful for tracking whether an estate is likely to owe. For 2026, the threshold is $1,838,056, adjusted via CPI-U.
For families planning their estates, this means focusing on the total value of assets rather than who receives what. Revocable trusts can help avoid probate while maintaining the same tax treatment, since trust assets remain part of the taxable estate for Rhode Island purposes.
(Learn More: Read about revocable trusts in Rhode Island versus Nevada and the cost of probate in Rhode Island.)
Sources
- Rhode Island Statutes (§ 33-1-6, § 33-1-5, § 33-1-10, § 33-1-13, § 33-22-21)