The 2025 picture for Rhode Island residents
In 2025, Rhode Island residents paid federal ordinary income tax at brackets topping out at 37%, plus Rhode Island state tax up to 5.99%, plus Medicare (1.45% + 0.9% additional above $200k single MAGI), plus a federal supplemental-withholding layer on RSU-style income.
2025 federal capital gains brackets
In $2025, federal long-term capital gains rates were 0% up to approximately $48,350, 15% up to approximately $533,400, and 20% above. The 3.8% NIIT added for MAGI above $200,000 single, producing a 23.8% top federal rate on long-term equity sales.
Rhode Island treatment in 2025
Rhode Island taxed long-term capital gains at ordinary income rates in 2025, up to 5.99%. Combined with the 23.8% federal top, a Rhode Island-resident equity seller paid approximately 29.8% on peak-bracket gains.
Frequently asked
- What supplemental-wage withholding rate applied to RSU income in Rhode Island in 2025?
- The federal supplemental-wage withholding rate was 22% on the first $1,000,000 of supplemental wages per calendar year, rising to 37% above that. Rhode Island state withholding ran up to 5.99% at the top bracket.
- Did Rhode Island recognize federal QSBS exclusion in 2025?
- Rhode Island's conformity status varies year by year and by type of taxpayer. As of 2025, most states other than California, New Jersey, Pennsylvania, and Mississippi either conformed fully or partially to Section 1202. Check the 2025 filing instructions for the specific language.
- What was the top federal ordinary bracket in 2025, and how did it apply to Rhode Island residents?
- The 37% federal ordinary bracket started around $626,350 of taxable income for single filers in 2025. Rhode Island stacked 5.99% on top of that for high earners, producing a combined top marginal rate of approximately 43.0%.