AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX

HB 7313 creates a new 3% tax rate on Rhode Island taxable income exceeding $640,000 (adjusted for inflation in 2026 dollars) for tax years beginning in 2027 and later. This applies specifically to high-income earners, including individuals, estates, and trusts with annual income above this threshold. The bill amends existing tax code to add this rate to the current progressive brackets, which already include rates up to 9.9% for income over $349,700. It does not affect past tax years and will be adjusted for inflation annually as required by law.