RI H7805

Rhode Island personal income tax rates would be reduced by 10% total over five years starting January 1, 2027, with 2% annual reductions bringing rates from 3.75%/4.75%/5.99% down to 3.38%/4.28%/5.39% by 2031

The Director of Revenue may recommend delaying a scheduled rate reduction if general revenues materially underperformed enacted estimates in the preceding fiscal year, with notification to legislative leadership required

Any delayed rate reductions would not be forfeited and would take effect once revenues stabilize, unless the General Assembly acts otherwise

The Director of Revenue must submit a report by January 15, 2029 evaluating the fiscal impact, tax collections by bracket, taxpayer behavior, and recommendations on continuing the phase-in schedule

Income thresholds for tax brackets would continue to be adjusted annually for inflation as provided under existing law