Rhode Island Bill Imposes 4% Tax on Net Investment Income for High-Income Households, Estates, and Trusts

Original title: AN ACT RELATING TO TAXATION -- WEALTH PROCEEDS TAX (Imposes a tax equal to four percent (4%) on net investment income, such as interest, dividends, annuities, royalties, capital gains and rental income, of high-income households, estates and trusts, based upon federal guidelines.)

Last action · February 27, 2026: Introduced, referred to House FinanceSponsors: Teresa Tanzi and 9 others

Bill progressHistory & official text ↓

Introduced

Committee

Floor Vote

Passed

Law

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What This Bill Proposed

Rhode Island legislation introduces a 4% tax on the of high-income households, estates, and trusts, covering earnings such as interest, dividends, capital gains, and rental income based on federal guidelines.

Why it matters

High-income residents, estate executors, and trust administrators face a new 4% state tax levy on passive income streams like capital gains, dividends, and royalties.

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

High-income households

Subject to a 4% tax on net investment income such as interest, dividends, and capital gains.

Directly affected

Estates and trusts

Required to pay a 4% tax on net investment income based on federal guidelines.

Key Facts

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Frequently Asked Questions

Who is subject to the 4% wealth proceeds tax?

High-income households, estates, and trusts.

What types of income are covered under this tax?

including interest, dividends, annuities, royalties, capital gains, and rental income.

What else do you want to know?

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Where This Stands

This bill did not become law - Died at adjournment · introduced in the House.

Procedural history

1 action

Feb 27, 2026Introduced
Introduced, referred to House Finance

Version history

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