How to File LLC Taxes in Rhode Island (2026)

Published by Jon Morgan | Co-Founder & Chief Editor

Last updated: August 29, 2026

FACT CHECKED by Aran Quinn, CPA, Esq., LL.M

Methodology
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Rhode Island LLCs file based on how the IRS classifies them. Single-member LLCs use Form 1040 federally and Form RI-1065 with the state.

Multi-member LLCs file Form 1065 federally and Form RI-1065 with the state. An S-corp election adds Form 1120-S and Form RI-1120S, and a C-corp election adds Form 1120 and Form RI-1120C, both filed with the Rhode Island Division of Taxation.

This page walks through which form fits your LLC, the state income tax rates for the current tax year, the payroll and sales taxes that come with hiring or selling in Rhode Island and the pass-through entity election that can ease the federal SALT cap.

Quick Summary

Rhode Island LLC Tax Summary

The table below lines up each Rhode Island LLC tax status with its federal form, its state form and where that state form gets filed.

Rhode Island state taxes by LLC type

By default, the IRS treats your Rhode Island LLC as a pass-through business. Profits flow straight to the members' own tax returns instead of being taxed twice. You can pick a different setup instead, S-corp or C-corp, and Rhode Island follows your federal choice.

See our guide to how LLC taxes work for the federal side of that election. Spell out the elected structure in your operating agreement so it matches what you actually file.

1. Rhode Island income tax rate for tax year 2026

Rhode Island taxes personal income at three rates for tax year 2026 [1]. You pay 3.75% up to $82,050, 4.75% up to $186,450 and 5.99% above that.

These brackets are the same for every filing status, and single-member and multi-member LLC owners pay them on their share of the profit.

C-corporations pay 7% of net income or a $400 minimum, whichever is greater, a cost worth weighing alongside everything else covered in what it costs to run an LLC in Rhode Island.

2. Single-member LLC

Rhode Island single-member LLCs are disregarded entities for federal purposes, so the owner reports profit on Schedule C with Form 1040. Rhode Island still requires the LLC itself to file Form RI-1065 [2], due April 15 for calendar-year filers.

The same minimum tax from the table above applies even in a loss year. The owner, or a manager if the operating agreement names one, signs the return.

3. Multi-member LLC

Multi-member LLCs default to partnership treatment. The LLC files federal Form 1065 and issues each owner a Schedule K-1, then every owner reports their share on personal Form 1040.

Rhode Island mirrors that with Form RI-1065, due March 15 for calendar-year filers, again with the same minimum tax owed by single-member LLCs. A managing member typically signs both returns.

4. LLCs taxed as S-corp

Electing S-corp status starts with Form 2553 at the IRS, then Form 1120-S federally and Form RI-1120S with the state. Both come due March 15 if you run on a calendar year, carrying the same minimum charge as the entity types above.

If the S-corp itself has federally taxable income, Rhode Island Schedule S adds a 7% tax on that amount. Whoever signs the federal return signs the state one too.

5. LLCs taxed as C-corp

C-corp elections file Form RI-1120C, due April 15 for calendar-year filers instead of the March 15 date above. Getting there starts with Form 8832 at the IRS, then Form 1120 federally.

Rhode Island taxes C-corps at the rate covered above, with the same $400 floor. The corporation's president or another authorized officer signs the return.

Federal taxes Rhode Island LLC owners pay

LLC owners taxed as sole proprietors or partners owe federal self-employment tax of 15.3% on their share of profit, split into 12.4% for Social Security and 2.9% for Medicare [3]. Rhode Island doesn't add a separate state self-employment tax.

If your Rhode Island income tax will exceed your credits by $250 or more, you make quarterly estimated payments on April 15, June 15, September 15 and the following January 15, using state Form RI-1040ES.

How Rhode Island calculates your taxable income

Rhode Island starts your state income tax from your federal adjusted gross income [4]. It then applies its own standard deduction and exemption amounts.

After that, it runs the result through the bracket rates above. Get your federal return right first, since every number on your Rhode Island return traces back to it.

Other Rhode Island taxes that may apply

Beyond income tax, your LLC may owe payroll or sales tax depending on what it does and whether it has employees.

1. Sales and use tax

Rhode Island charges 7% sales tax on taxable retail sales [5]. It charges a matching 7% use tax on property stored or used in the state.

Register through the RI Taxpayer Portal before you make your first taxable sale. Permits expire every June 30 and renew each year by February 1.

2. Rhode Island employer taxes

If your LLC has employees, you'll register with the Rhode Island Department of Labor and Training and pay unemployment insurance tax on the first $30,800 of each employee's wages, or $32,300 if your account sits at the state's highest tax rate [6].

For 2026, rates run from 0.9% to 9.4% depending on your experience rating, and a new employer starts at 1.21%, which already folds in the 0.21% Job Development Assessment. Temporary disability insurance comes out of employee paychecks instead of your LLC's bank account.

3. Industry and local taxes

The Division of Taxation also runs narrower taxes that hit only certain industries, including the adult-use cannabis tax, alcohol import tax and cigarette tax.

Other industry taxes include the motor fuel tax, real estate conveyance tax and tobacco products tax. Whether any of these touch your LLC depends on what you sell.

Rhode Island pass-through entity tax (PTET) election

Rhode Island lets multi-member LLCs, LLCs taxed as S-corps and trusts pay state tax at the entity level instead of passing it to members [7].

The state built this option so members could keep deducting Rhode Island tax on their federal return, getting around the federal cap on state and local tax deductions.

The entity reports the election on RI Schedule PTE, attached to Form RI-1065 or Form RI-1120S. It pays a flat 5.99% on Rhode Island-apportioned income. Members can then claim a credit for 90% of the tax the entity paid.

The schedule is due with the entity's own return, March 15 for calendar-year filers. Run the numbers with a CPA well before that date.

What is deductible for a Rhode Island LLC

Rhode Island generally follows the federal rules for what counts as a deductible business expense. Ordinary costs like rent, payroll, supplies and business insurance reduce the income you report on both returns.

The federal Qualified Business Income deduction under Section 199A lets many pass-through owners deduct up to 20% of qualified business income, but that deduction applies to the federal return only [8].

Rhode Island also runs its own credit programs. These include the Rebuild Rhode Island Tax Credit, the Stay Invested in RI Wavemaker Credit and credits for historic preservation projects.

Each one has its own rules, so check the current guidelines with the Division of Taxation before you count on one.

FAQs

References:

1. https://tax.ri.gov/sites/g/files/xkgbur541/files/2026-01/2026%20RI-1040ES_w.pdf
2. https://tax.ri.gov/tax-sections/corporate-tax/tax-filing-requirements
3. https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
4. https://tax.ri.gov/tax-sections/personal-income-tax
5. https://tax.ri.gov/tax-sections/sales-excise-taxes/sales-use-tax
6. https://dlt.ri.gov/press-releases/2026-tax-rates-unemployment-insurance-and-temporary-disability-insurance
7. https://tax.ri.gov/tax-sections/corporate-tax/pass-through-entities
8. https://www.irs.gov/newsroom/qualified-business-income-deduction