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HB 8190

AN ACT RELATING TO TAXATION -- ESTATE AND TRANSFER TAXES -- LIABILITY AND COMPUTATION

2026 Regular Session Introduced by Sam Azzinaro and 9 co-sponsors

Rhode Island's estate tax would be phased out, raising exemptions with CPI-adjusted credits so no tax applies to deaths after 2033.

05/21/2026 Committee recommended measure be held for further study
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WeVote Research Nonpartisan
Bill Summary · HB 8190

Overview

HB 8190 (Rhode Island, 2026) proposes a phased restructuring and eventual elimination of the Rhode Island estate tax, altering how net estates are taxed, expanding exemptions over time, and providing annual CPI-based adjustments to certain credits. The act would take effect upon passage.

Main purpose and intent

  • To gradually increase the net taxable estate exemption thresholds and ultimately eliminate Rhode Island’s estate tax for decedents whose death occurs on or after January 1, 2033.
  • To align Rhode Island’s estate tax framework with a phased schedule of exemption amounts and credit rules, while preserving certain credits and addressing tax situs rules.

Key provisions and changes

  • Section 44-22-1.1(a) establishes a series of estate tax thresholds and credit-based computations tied to the federal estate tax concept (as of specified U.S. Code provisions) across defined time windows:
    • 2022–2019: Retains historical maximum credits for state death taxes (as of prior years) with thresholds triggering tax.
    • 2010–2014: Still uses a max credit framework; triggers taxes only above certain net estate amounts, with CPI adjustments starting 2011–2015.
    • 2015 onward: Rhode Island credit of $64,400 is allowed against the tax; begins annual CPI-based adjustments from 2016 onward.
    • 2027 onward: Beginning January 1, 2027, a new threshold: net taxable estate must exceed $5,000,000 to be taxed; Rhode Island credit continues to apply; CPI adjustments begin in 2028.
    • 2029 onward: Threshold increases to $7,500,000; CPI adjustments begin in 2030.
    • 2031 onward: Threshold increases to $10,000,000; CPI adjustments begin in 2032.
    • 2033 onward: No Rhode Island estate tax is imposed.
  • CPI-U adjustments: Starting at specified dates (e.g., 2016, 2028, 2030, 2032) the Rhode Island credit amounts (and later per-threshold credits) are adjusted annually based on the CPI-U increases, rounded up to the nearest $5.
  • Section 1(b): If property has tax situs outside Rhode Island, the tax is prorated by a fraction representing in-state gross estate versus total gross estate (no deductions or encumbrances considered in the fraction).
  • Section 1(c)–(e): Align terms with federal estate tax concepts as of specified dates and clarify situs rules for real estate, tangible personal property, and intangible property based on residency and situs.
  • Section 2: Effective date is upon passage.

Stakeholders affected

  • Decedents’ estates and potential heirs: The tax liability will rise or fall with the estate size, but the threshold increases reduce tax exposure over time.
  • Rhode Island taxpayers with large estates: Beneficiaries could see reduced or eliminated state estate tax liability starting 2033.
  • Tax practitioners and estate planners: Will need to account for changing exemption thresholds, CPI adjustments, and situs rules.

Procedural and timeline aspects

  • Incremental increases in exemption thresholds occur on January 1 of 2027, 2029, 2031, with subsequent CPI-based adjustments annually in specific years (2028, 2030, 2032, etc.).
  • Beginning January 1, 2033, Rhode Island would no longer impose an estate tax.
  • The act takes effect immediately upon passage.

Summary impact

HB 8190 envisions a progressive phase-out of Rhode Island’s estate tax by raising exemption thresholds and applying CPI-indexed credits, culminating in no tax for deaths after 2033. It preserves a Rhode Island-specific credit against the tax through 2032, with annual adjustments, and clarifies how multi-jurisdictional estates are taxed.

Compiled from official sources — confirm details with the bill’s official record.

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