Tax rate used in calculating Rhode Island state tax for year 2023

From $189

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Withholding Formula >(Rhode Island Effective 2023)<

1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
   
   
2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
   
   
3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
   
   
4. Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
   
   
5. Determine the exemption allowance by applying the following guideline and subtract this amount from the gross annual wages to compute taxable income:

   Exemption Allowance = >$1,000< x Number of Exemptions

   However, if Annual wages are more than $260,550, Exemption is $0

6. Apply the taxable income computed in step 5 to the following table to determine the annual Rhode Island tax withholding:
   
   

Tax Withholding Table For All Filing Type
If the Amount of Taxable Income Is:		The Amount of Rhode Island Tax Withholding Should Be:
Over:	But Not Over:				Of Excess Over:
$           0	$      73,450	$     0.00	plus	3.75%	$        0
73,450	>166,950	2,754.38	plus	4.75%	73,450
166,950<	and over	7,195.63	plus	5.99%	166,950<




7. Divide the annual Rhode Island tax withholding by 26 to obtain the biweekly Rhode Island tax withholding.

More Payroll Information for Rhode Island Small Business