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

HB 5754 increases Rhode Island's estate tax exemption to $4 million for deaths occurring on or after January 1, 2026. This means estates valued below $4 million will not owe state estate tax under this provision. The exemption amount will adjust annually for inflation using the Consumer Price Index (CPI-U), rounded up to the nearest $5 increment. The bill directly affects residents and nonresidents whose estates exceed this threshold after 2025, delaying the tax liability for larger estates. This change aligns with the state's existing practice of adjusting estate tax thresholds based on inflation.