Tax Foundation: R.I. 9th highest in state, local tax burden as percentage of state income

RHODE ISLAND RANKED ninth highest in the Tax Foundation's list of state-local tax burdens as a percentage of income and per capita at 10.8 percent and $4,998. / COURTESY TAX FOUNDATION
RHODE ISLAND RANKED ninth highest in the Tax Foundation's list of state-local tax burdens as a percentage of income and per capita at 10.8 percent and $4,998. / COURTESY TAX FOUNDATION

PROVIDENCE – The Ocean State ranks ninth highest in state and local tax burden as a percentage of state income and per capita in the Tax Foundation’s 2017 annual Facts & Figures report.
Rhode Island’s state and local tax burden represents nearly 11 percent of state income, above the U.S. average of 9.9 percent. The total tax burden per capita is $4,998 in Rhode Island.
Ranking first is New York for its high percentage of 12.7 percent, and total tax burden of $6,993. Massachusetts is 12th highest at 10.3 percent, with a total tax burden of $5,872. Lowest on this list is Alaska at 6.5 percent, with a total tax burden of $3,229. This list is based on fiscal 2012 data.
The report also showed that Rhode Island ranks 44th on the Tax Foundation’s State Business Tax Climate Index, which measures how well each state’s tax code is structured based on data as of July 1, 2016. Five component taxes are looked at for this ranking – corporate tax, individual income tax, sales tax, unemployment insurance tax and property tax. Rhode Island ranked 31st, 39th, 22nd, 50th and 44th in these categories, respectively.
On the overall State Business Tax Climate Index, Wyoming ranked the best, while New Jersey ranked the worst.
As for state tax collections per capita (fiscal 2015), Rhode Island ranked 16th highest at $3,026. North Dakota topped this category with $7,583 in collections, and Alaska had the least amount of collections at $1,170. The U.S. average was $2,694.
Rhode Island ranked 12th highest for state revenue per capita, based on fiscal 2014 data, at $6,746. Alaska was No. 1 in this category for $14,160 in collections, while Florida ranked lowest, at $3,860. The national average was $5,361.
Other key rankings for Rhode Island:

  • Federal aid as a percentage of state general revenue: 16th (accounts for 34.7 percent of Rhode Island’s budget, above the U.S. average of 30 percent)
  • State individual income tax collections per capita: 17th ($1,151; national average: $967)
  • State corporate income tax collections per capita: 20th ($167; national average: $144)

The report lists numerous other rankings regarding Rhode Island, such as state cigarette excise tax rates – Rhode Island ranks third highest at $3.75, behind only first place New York at $4.35 and No. 2 Connecticut at $3.90. Missouri has the cheapest state cigarette excise tax at 17 cents.
Rhode Island’s Tax Freedom Day also is April 28, ranking it 42nd in the nation. Tax Freedom Day represents how long into the year Americans work before they have earned enough money to pay all federal, state and local taxes for the year. Mississippi residents have the earliest Tax Freedom Day – April 5, while Connecticut has the latest, May 21.

No posts to display