Rhode Island Lawmakers Advance Major Bills in 2026 Session
Rhode Island legislators are weighing a proposed 8.99 percent tax on millionaires and a 14.9 billion dollar state budget as the 2026 session nears its conclusion. Key measures moving forward include extensions to statutes of limitations for abuse victims and new regulations for the housing and healthcare sectors.
The Rhode Island General Assembly is finalizing a $14.9B state budget that includes a new 8.99% tax bracket for residents earning over $1M. The spending plan rose 3.6% to $14.9B, while state revenue grew 2.4% to $5.95B. This fiscal framework sets the stage for final negotiations on corporate tax incentives and labor mandates.
### Tax Shifts and Infrastructure Incentives Governor Dan McKee proposed the millionaires tax to generate $135.3 million in new state revenue in a full year, matching rates in neighboring Massachusetts. This proposal faces a competing policy direction in S 2710, which would instead cut personal income tax rates by 2% annually starting January 1, 2027. Senate Finance members held the tax cut bill for further study on April 14.
