The United States’ northeastern region includes the small state of Rhode Island. If you’re thinking about purchasing a luxury good in Rhode Island, you might be wondering if there is a luxury tax in place. The short answer is no, there is no luxury tax in Rhode Island. You won’t be required to pay an additional tax on luxury things like pricey vehicles, yachts, or jewels as a result.
It is important to remember that Rhode Island does have a 7% sales tax that is applicable to the majority of products and services. Therefore, even if there won’t be a luxury tax, you will still be required to pay the state’s regular sales tax on any luxuries you buy there.
As we go on to the pertinent queries, let’s begin with take-home money. Your take-home pay if you earn $65,000 in Rhode Island will vary depending on your tax filing status, deductions, and exemptions. The federal and state income taxes you would owe, presuming you’re a single filer with no dependents, would total around $9,235 and $2,965, respectively. Your take-home salary after taxes would be roughly $49,800.
Let’s now contrast Massachusetts’ and Rhode Island’s tax rates. While the sales tax rates in the two states (6.25% in Massachusetts and 7% in Rhode Island) are comparable, there are differences in the income tax rates. Rates for the progressive income tax in Rhode Island range from 3.75% to 5.99%. Massachusetts, in comparison, has a flat income tax rate of 5.05%. As a result, if you make more money in Rhode Island than in Massachusetts, you will pay a higher tax rate.
The following states have no sales tax, starting with those with the lowest rates: New Hampshire, Oregon, Alaska, Delaware, Montana, and Delaware. It’s important to keep in mind that some of these states may have higher income or property taxes to offset the absence of a sales tax.
Let’s talk about property taxes lastly. While other states don’t have property taxes, Rhode Island does. Hawaii, Alabama, Louisiana, and Delaware are some of these states. To make up for the lack of a property tax, it’s important to keep in mind that some states may have higher income or sales taxes.
In conclusion, Rhode Island levies income and sales taxes but does not levy a luxury tax. Your take-home income in Rhode Island if you earn $65,000 will be roughly $49,800. Rhode Island has greater taxes than Massachusetts, however other states don’t impose a sales or property tax.