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SB 2019

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

2026 Regular Session Introduced by Andrew Dimitri and 9 co-sponsors

Rhode Island’s estate tax is gradually phased out: exempt net taxable estates rise from $3.6 million in 2027 by $1 million annually, and the tax ends on Jan 1, 2033.

04/30/2026 Committee recommended measure be held for further study
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WeVote Research Nonpartisan
Bill Summary · SB 2019

Summary of Bill SB 2019 (Rhode Island, 2026)

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

Jurisdiction: Rhode Island
Session: 2026
Introduced: January 9, 2026
Referred To: Senate Finance
Status: As of action history, committee recommended holding for further study (May 1, 2026)

1) Main purpose and intent

  • The bill revises Rhode Island’s estate and transfer tax structure, focusing on phasing in gradual increases to the net taxable estate exemption and extending a sunset period through January 1, 2033.
  • The key shift is to raise the threshold (exemption) for the net taxable estate that is subject to Rhode Island estate tax, starting in 2027 and continuing annually, culminating in expiration of the tax regime on January 1, 2033 unless extended or altered by future legislation.

2) Key provisions and changes

  • Section 1 (amendment to 44-22-1.1) establishes a tiered framework for years after death:
    • 2027– Before 2033: The net taxable estate exemption increases to $3,600,000 beginning January 1, 2027.
    • 2028 and each subsequent January 1 until 2033: The exemption increases by $1,000,000 annually.
    • The entire scheme sunsets (expires) on January 1, 2033, at which point the bill’s provisions would no longer be in effect.
  • Tax base and computation:
    • Tax remains tied to the maximum credit for state death taxes allowed by federal law (as interpreted and applicable in Rhode Island’s statutes) but with state-specific adjustments and exemptions outlined above.
    • The calculation follows a progressive structure tied to federal estate tax concepts (gross taxable estate, federal gross estate, and net taxable estate) with Rhode Island-specific rules for determining tax situs and applicability.
  • Tax situs and apportionment:
    • If the decedent’s estate includes property not within Rhode Island, the Rhode Island tax is proportionally reduced by a specified fraction, using the ratio of Rhode Island-situs assets to the gross estate. Deductions are not considered in this fractional adjustment.
  • Consistency with federal references:
    • The bill aligns Rhode Island’s definitions of “gross taxable estate,” “federal gross estate,” and “net taxable estate” with their federal counterparts for decedents after 2002 (with U.S. Code references maintained as of specified dates).
  • Sunset provision:
    • The act explicitly sunsets on January 1, 2033, ending the changes unless additional legislation extends or modifies the regime.

3) Who or what is affected

  • Rhode Island decedents (residents and nonresidents) whose estates are subject to the state estate tax.
  • Estates with net taxable value at or above the specified exemption thresholds:
    • Starting 2027, estates with net taxable value exceeding $3,600,000 become taxable (subject to Rhode Island’s maximum credit framework).
    • Annual increases in the exemption scale mean progressively larger estates are exempt over time, reducing revenue from the tax beginning in 2027 and onward.
  • Estates containing property with a tax situs outside Rhode Island receive a proportional reduction in the Rhode Island tax due.

4) Procedural and timeline aspects

  • Effective date: The act takes effect upon passage.
  • Sunset: The tax provisions expire automatically on January 1, 2033, unless extended by future legislation.
  • Compliance/administration: Aligns Rhode Island’s estate tax framework with federal tax definitions and credits, requiring taxpayers and the state to apply the tax credits and exemption thresholds as described, including CPI-U adjustments for prior years (though CPI adjustments apply to earlier tiers as specified in existing structure, not to the sunset period).

5) Notable details

  • The bill retains references to 26 U.S.C. § 2011 (state death tax credit) and related credits, applying them within Rhode Island’s statutory framework.
  • The annual exemption increases are substantial and scheduled, signaling a gradual phasing out of Rhode Island’s estate tax over this period, culminating in a sunset.

If you’d like, I can provide a concise one-page briefing or a comparison with current Rhode Island estate tax rules and with federal estate tax thresholds.

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

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