--- title: "Rhode Island Payroll 2026: Tax, UI, TDI & TCI" description: "Rhode Island taxes wages on three brackets to 5.99%, with a $30,800 UI base plus an employee-funded TDI and TCI deduction. Teamed EOR guide." canonical: https://www.teamed.global/country-hiring-guides/united-states/rhode-island/state-income-tax-and-unemployment-insurance --- United States · Rhode Island · State tax child Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions # How does *Rhode Island state income tax and unemployment insurance* work in 2026? Rhode Island taxes wages on three brackets, from 3.75% to 5.99%. On top sit a $30,800 unemployment base and an employee-funded disability and caregiver deduction on a $100,000 base. Last reviewed 6 June 2026 · Rhode Island, United States guide ![The Providence, Rhode Island skyline at dusk: the Industrial Trust building and downtown towers above the Providence River, with the marble State House dome lit pale against a deep blue evening sky.](/cluster-assets/country-hiring-guides/united-states/rhode-island/state-income-tax-and-unemployment-insurance/images/hero.webp) Illustration · Providence, Rhode Island Rhode Island is a small state with a payroll that carries more parts than its size suggests. There **is** a state income tax, with three brackets running from **3.75%** to **5.99%** over $186,450, and you withhold state tax on every employee using [Form RI-W4](https://tax.ri.gov/sites/g/files/xkgbur381/files/2024-12/RI_W4_2025.pdf). The part out-of-state employers miss is the employee deduction. Unemployment runs on a **$30,800 wage base** at a new-employer rate of **1.21%**. Separately, **Temporary Disability and Temporary Caregiver Insurance** takes **1.10%** straight from the employee, on a much higher $100,000 base. Rhode Island is one of a handful of states that funds disability leave this way. ## Does Rhode Island have a state income tax in 2026? Yes. Rhode Island taxes wages on three graduated brackets in 2026: **3.75%** up to $82,050, **4.75%** from there to $186,450, then a top rate of **5.99%** above $186,450. You withhold state income tax on every Rhode Island employee. The same rate schedule applies to single and joint filers, and there is a state withholding form, [Form RI-W4](https://tax.ri.gov/sites/g/files/xkgbur381/files/2024-12/RI_W4_2025.pdf), that sits alongside the federal W-4. The 2026 bands run 3.75% on the first $82,050 of taxable income, 4.75% from $82,050 to $186,450, and 5.99% above $186,450. The [Rhode Island Division of Taxation](https://tax.ri.gov/) adjusts the break points for inflation each January, so they shift slightly every year. Rhode Island uses one schedule for all filing statuses, which keeps the withholding maths simpler than in states with separate single and joint tables. The standard deduction for 2026 is $10,900 for a single filer and $21,800 for joint filers, with a $5,100 exemption per person. Both phase out at higher incomes. You remit withholding to the [Rhode Island Division of Taxation](https://tax.ri.gov/) on a schedule tied to payroll size. The first-payroll trap is treating withholding as the whole job. The cost and the deadline risk sit in the [unemployment and disability programmes](/country-hiring-guides/united-states/rhode-island/paid-family-and-sick-leave) that withholding does not touch. ## How does Rhode Island withholding and supplemental pay work? You register with the [Rhode Island Division of Taxation](https://tax.ri.gov/) for a withholding account, collect a Form RI-W4 from each employee, and remit state income tax on a schedule tied to how much you withhold. Larger payrolls file more often than small ones. Bonuses, commissions, and other supplemental wages are withheld at a flat **5.99%** in 2026 when paid separately, which matches the state's top marginal rate. The [RI-W4](https://tax.ri.gov/sites/g/files/xkgbur381/files/2024-12/RI_W4_2025.pdf) matters because an employee can claim a different allowance position for state than for federal, and you must keep the form on file. Get the registration wrong and you face late-deposit penalties from the state on top of the federal ones. Rhode Island withholding deposits are weekly, monthly, or quarterly depending on the size of your payroll, so a growing team moves to a tighter filing cadence as it scales. For context on how this compares across the region, see how [Massachusetts handles withholding and supplemental pay](/country-hiring-guides/united-states/massachusetts/state-income-tax-and-unemployment-insurance). Supplemental pay is where small employers slip. A separately paid bonus is withheld at 5.99%, the 5.99% top rate, rather than at the employee's marginal band, so the take-home on a bonus looks lighter than people expect. The federal stack runs underneath all of this: Social Security and Medicare under [FICA](https://www.irs.gov/businesses/small-businesses-self-employed/understanding-employment-taxes), plus federal unemployment tax, on every Rhode Island paycheque. For the full picture of what you owe on top of wages, see [Rhode Island wage and overtime law](/country-hiring-guides/united-states/rhode-island/wage-overtime-and-meal-break-law). ## How do Rhode Island UI and TDI/TCI contributions work in 2026? Unemployment insurance runs on a **$30,800 wage base** for most employers in 2026, up from $29,800. New employers pay **1.21%**, which includes the **0.21%** Job Development Assessment. Highest-rated employers pay on a higher $32,300 base. Then comes the part most states do not have. **Temporary Disability and Temporary Caregiver Insurance** is funded entirely by the employee, at **1.10%** on a $100,000 wage base for 2026, capped at **$1,100** a year. RI Dept of Labor & Training · 2026 rates UI wage base: **$30,800** for most employers ($32,300 for the highest-rated). New-employer rate: **1.21%**, including the 0.21% Job Development Assessment. Experienced-employer rates run 0.90% to 9.40% on Schedule F. Employee TDI/TCI: **1.10%** on $100,000, max $1,100. Source: [RI Department of Labor & Training, 2026 UI and TDI tax rates](https://dlt.ri.gov/press-releases/2026-tax-rates-unemployment-insurance-and-temporary-disability-insurance) Hire a senior engineer in Providence and you immediately run two parallel wage-base clocks. You pay UI on the first **$30,800** of their wages, reported to the [RI Department of Labor and Training](https://dlt.ri.gov/employers/unemployment-insurance). The employee TDI and TCI deduction runs on a much higher $100,000 base, so a senior salary keeps contributing well past the unemployment ceiling, up to $1,100 for the year. The TCI piece covers paid caregiver leave, which connects directly to [Rhode Island's paid family and sick leave obligations](/country-hiring-guides/united-states/rhode-island/paid-family-and-sick-leave). The TDI/TCI rate moves every year, which is what catches payroll teams. For 2026 it is 1.10%, down from 2025, while the wage base rose to $100,000. The fund pays both short-term disability and paid caregiver leave, so one deduction covers two benefits. New employers hold the 1.21% unemployment rate until they earn an experience rate on Schedule F, which runs 0.90% to 9.40%. Connecticut runs a structurally similar dual-base system, so if you're comparing costs across New England, check [how Connecticut handles UI and paid leave contributions](/country-hiring-guides/united-states/connecticut/state-income-tax-and-unemployment-insurance). ## What other payroll rules apply to Rhode Island employees? You run the full federal stack: Social Security at **6.2%** to $184,500, Medicare at 1.45%, and [FUTA](https://www.irs.gov/businesses/small-businesses-self-employed/federal-unemployment-tax) at an effective **0.6%** on the first $7,000. Rhode Island's minimum wage is **$16 an hour** in 2026, with a $3.89 tipped cash wage. Rhode Island also mandates paid sick leave. Under the [Healthy and Safe Families and Workplaces Act](https://dlt.ri.gov/employers/employment-leave-laws), employers with **18 or more employees** must provide paid sick and safe leave, accruing up to 40 hours a year. The $16 minimum wage rose from $15.00 in 2025 and is scheduled to reach $17.00 in 2027, so the figure steps up each January. Tipped workers can be paid a $3.89 cash wage, but tips must bring them to the full $16, and you make up any shortfall. Overtime is the standard time-and-a-half after 40 hours in a week, under the [Fair Labor Standards Act](https://www.dol.gov/agencies/whd/flsa). For Rhode Island-specific overtime rules and meal break requirements, see [Rhode Island wage, overtime and meal break law](/country-hiring-guides/united-states/rhode-island/wage-overtime-and-meal-break-law). Paid sick leave applies to employers with 18 or more employees, who accrue one hour for every 35 hours worked, up to 40 hours a year. Smaller employers must still give the same leave unpaid with job protection. Rhode Island has no separate state paid-family-leave payroll tax beyond TCI, which already sits inside the 1.10% employee deduction, so the caregiver benefit is funded through that one line rather than a second contribution. The full rules on leave entitlements, accrual, and job-protection sit in [Rhode Island paid family and sick leave](/country-hiring-guides/united-states/rhode-island/paid-family-and-sick-leave). ## How Teamed runs Rhode Island payroll end to end Teamed becomes your legal [employer of record](/lp/employer-of-record) in Rhode Island for [**from $599 per employee per month flat**](/pricing). **Zero FX** mark-up. Statutory employer cost passes through at cost, itemised on every invoice. You hire the person. Teamed registers with the [Rhode Island Division of Taxation](https://tax.ri.gov/) and [Department of Labor and Training](https://dlt.ri.gov/), withholds state income tax up to the 5.99% bracket, runs unemployment insurance, manages the employee TDI and TCI deduction, and tracks paid sick leave accrual. Everything runs on **one platform**. **Real HR and legal experts** handle your Rhode Island hires and know the three-bracket withholding, the $30,800 UI base, and the 1.10% TDI/TCI employee rate on its $100,000 base. **An actual person, not a chatbot or a pooled queue.** You see every cost: state income tax withheld, the employer unemployment contribution, the employee TDI and TCI deduction, and federal employer taxes pass through at cost, itemised and auditable on every invoice. **No setup fee, no exit fee.** Contractor onboarding, EOR payroll, and entity graduation all live on **one platform**: a Rhode Island contractor who converts to W-2 keeps their record, and that same employee can **graduate** to your own US entity without switching systems. Because Rhode Island makes you run an employer unemployment contribution and a separate employee disability deduction on two wage bases, the admin load per head is higher than in a no-tax state. That changes when your own entity pays off. Use the [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) to see the month the model flips, or the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to model total cost for a Rhode Island hire today. When you're ready, [talk to an expert](https://www.teamed.global/contact). For the full picture of what employment law looks like once your team is in place, see [Rhode Island termination law and at-will exceptions](/country-hiring-guides/united-states/rhode-island/termination-law-and-at-will-exceptions). Across the wider US guide, you'll find every state covered under [hiring in the United States](/country-hiring-guides/united-states). Teamed Client Operations The mistake we see on Rhode Island is budgeting for income-tax withholding and stopping there. You also fund unemployment on one wage base and take the TDI and TCI deduction straight from the employee on a far higher one. Two bases, an employer tax and an employee deduction, two ways to get a number wrong. We run both on one register. A note from Tom Price-Daniel Rhode Island is a small state with a payroll that carries more parts than the tax rate suggests. One hire means an employer unemployment contribution on a $30,800 base, plus an employee disability and caregiver deduction on a $100,000 base that resets every year. Three income-tax brackets is the easy part. The two wage bases are the part we run for you. Tom Price-Daniel · Co-founder, Teamed ## Related United States guides - [Hiring in the United States, overview](/country-hiring-guides/united-states)country parent - [Rhode Island wages, overtime and meal breaks](/country-hiring-guides/united-states/rhode-island/wage-overtime-and-meal-break-law)sibling - [Rhode Island paid family and sick leave](/country-hiring-guides/united-states/rhode-island/paid-family-and-sick-leave)sibling - [Rhode Island termination law and at-will exceptions](/country-hiring-guides/united-states/rhode-island/termination-law-and-at-will-exceptions)sibling - [Massachusetts state tax and UI](/country-hiring-guides/united-states/massachusetts/state-income-tax-and-unemployment-insurance)cross-state neighbour - [Connecticut state tax and UI](/country-hiring-guides/united-states/connecticut/state-income-tax-and-unemployment-insurance)cross-state neighbour - [Employer of Record overview](/lp/employer-of-record)core - [Pricing, Zero FX Fixed](/pricing)core - [EOR vs Entity Crossover Calculator](https://www.teamed.global/tools/crossover-calculator)tool - [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)tool - [Talk to an expert](https://www.teamed.global/contact)CTA A note on this page. This is a guide, not legal advice. Rhode Island's income tax brackets and standard deduction, UI wage base and rate schedule, Temporary Disability and Temporary Caregiver Insurance rate and wage base, paid sick leave rules, and minimum wage update when the legislature acts or the Division of Taxation and the Department of Labor and Training issue new figures. The TDI/TCI employee contribution rate in particular changes every year. Confirm specific numbers with the Rhode Island Division of Taxation, the Rhode Island Department of Labor and Training, or your Teamed US specialist before relying on any figure here.