Updated October 4, 2026. Quick answer: Yes. The instructions say “Rhode Island income tax is based on your federal adjusted gross income”, so a gain is taxed on the three-bracket schedule, 3.75%, 4.75% and 5.99%. The documents read print no capital gains exclusion.
Selling your home? How the state taxes the profit, from its own tax documents: Does Rhode Island tax the profit from selling your home?.
The same question for dividends and interest: does Rhode Island tax dividends and interest.
How Rhode Island treats capital gains
| Item | What the documents say |
|---|---|
| Treatment | Part of federal adjusted gross income, taxed on the uniform schedule; no exclusion for gains printed |
| 2025 rates | 3.75% up to $79,900; 4.75% over $79,900 up to $181,650; 5.99% over $181,650 |
| 2026 rates | 3.75% up to $82,050; 4.75% up to $186,450; 5.99% above (ADV 2025-22) |
A $50,000 long-term gain
Taxed wholly at the lowest rate, a $50,000 gain is computed as $50,000 x 3.75% = $1,875; taxed wholly at the top rate, computed as $50,000 x 5.99% = $2,995. Your bracket decides.
What changes in 2026
The Division’s advisory ADV 2025-22 raises the bracket dollar amounts for 2026 and leaves the three rates unchanged.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal tax on gains in Topic no. 409, Capital Gains and Losses and Publication 550, Investment Income and Expenses.
Related: whether Rhode Island taxes pensions, how Rhode Island taxes retirement income, the capital gains tax by state table, and the federal capital gains tax calculator.
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Answer againSources
- 2025 Rhode Island Tax Rate Schedule: https://tax.ri.gov/sites/g/files/xkgbur541/files/2025-10/2025%20RI%20Tax%20Tables_Full_d.pdf
- ADV 2025-22: Inflation-adjusted amounts set for Tax Year 2026: https://tax.ri.gov/sites/g/files/xkgbur541/files/2025-11/ADV_2025_22_Inflation_Adjustments.pdf
- 2025 RI-1040 Resident Instructions: https://tax.ri.gov/sites/g/files/xkgbur541/files/2025-11/2025%201040R%20Instructions_d.pdf
- R.I. Gen. Laws 44-30-12 (Rhode Island income of a resident individual): http://webserver.rilegislature.gov/Statutes/TITLE44/44-30/44-II/44-30-12.htm
- R.I. Gen. Laws 44-30-2.6 (Rate of tax): http://webserver.rilegislature.gov/Statutes/TITLE44/44-30/44-I/44-30-2.6.htm
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.