AN ACT RELATING TO TAXATION -- ESTATE AND TRANSFER TAXES -- LIABILITY AND COMPUTATION (Increase the net taxable estate exemption to $3,600,000 on January 1, 2027. This act would also increase the exemption by $1,000,000 on January 1, 2028 and every year thereafter until this section and the tax would sunset and expire on January 1, 2033)

S2019

2026 -- S 2019
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO TAXATION -- ESTATE AND TRANSFER TAXES -- LIABILITY AND
COMPUTATION

Introduced By:
Senators Paolino, E Morgan, Rogers, de la Cruz, Raptakis, Patalano,
Dimitri, Pearson, Urso, and Thompson

Date Introduced:
January 09, 2026

Referred To:
Senate Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Section 44-22-1.1 of the General Laws in Chapter 44-22 entitled "Estate and
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Transfer Taxes — Liability and Computation" is hereby amended to read as follows:
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44-22-1.1. Tax on net estate of decedent.
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(a)(1) For decedents whose death occurs on or after January 1, 1992, but prior to January
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1, 2002, a tax is imposed upon the transfer of the net estate of every resident or nonresident decedent
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as a tax upon the right to transfer. The tax is a sum equal to the maximum credit for state death
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taxes allowed by 26 U.S.C. § 2011.
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(2) For decedents whose death occurs on or after January 1, 2002, but prior to January 1,
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2010, a tax is imposed upon the transfer of the net estate of every resident or nonresident decedent
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as a tax upon the right to transfer. The tax is a sum equal to the maximum credit for state death
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taxes allowed by 26 U.S.C. § 2011 as it was in effect as of January 1, 2001; provided, however,
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that the tax shall be imposed only if the net taxable estate shall exceed six hundred seventy-five
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thousand dollars ($675,000). Any scheduled increase in the unified credit provided in 26 U.S.C. §
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2010 in effect on January 1, 2001, or thereafter, shall not apply.
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(3) For decedents whose death occurs on or after January 1, 2010, and prior to January 1,
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2015, a tax is imposed upon the transfer of the net estate of every resident or nonresident decedent
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as a tax upon the right to transfer. The tax is a sum equal to the maximum credit for state death
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taxes allowed by 26 U.S.C. § 2011 as it was in effect as of January 1, 2001; provided, however,

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that the tax shall be imposed only if the net taxable estate shall exceed eight hundred and fifty
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thousand dollars ($850,000); provided, further, beginning on January 1, 2011, and each January 1
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thereafter until January 1, 2015, said amount shall be adjusted by the percentage of increase in the
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Consumer Price Index for all Urban Consumers (CPI-U) as published by the United States
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Department of Labor Statistics determined as of September 30 of the prior calendar year; said
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adjustment shall be compounded annually and shall be rounded up to the nearest five dollar ($5.00)
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increment. Any scheduled increase in the unified credit provided in 26 U.S.C. § 2010 in effect on
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January 1, 2003, or thereafter, shall not apply.
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(4) For decedents whose death occurs on or after January 1, 2015, a tax is imposed upon
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the transfer of the net estate of every resident or nonresident decedent as a tax upon the right to
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transfer. The tax is a sum equal to the maximum credit for state death taxes allowed by 26 U.S.C.
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§ 2011, as it was in effect as of January 1, 2001; provided, however, that a Rhode Island credit shall
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be allowed against any tax so determined in the amount of sixty-four thousand four hundred
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($64,400). Any scheduled increase in the unified credit provided in 26 U.S.C. § 2010 in effect on
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January 1, 2003, or thereafter, shall not apply; provided, further, beginning on January 1, 2016, and
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each January 1 thereafter, said Rhode Island credit amount under this section shall be adjusted by
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the percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-U) as
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published by the United States Department of Labor Statistics determined as of September 30 of
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the prior calendar year; said adjustment shall be compounded annually and shall be rounded up to
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the nearest five dollar ($5.00) increment.
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(5)(i) For decedents whose death occurs on or after January 1, 2027 and prior to January 1,
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2028, a tax is imposed pursuant to the provisions of subsection (a)(4) of this section, upon the
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transfer of the net estate of every resident or nonresident decedent as a right of transfer, if the net
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taxable estate shall exceed three million six hundred thousand dollars ($3,600,00);
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(ii) For decedents whose death occurs on or after January 1, 2028 and prior to January 1,
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2029, a tax is imposed pursuant to the provisions of subsection (a)(4) of this section, upon the
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transfer of the net estate of every resident or nonresident decedent as a right of transfer, if the net
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taxable estate shall exceed four million six hundred thousand dollars ($4,600,00);
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(iii) For decedents whose death occurs on or after January 1, 2029 and prior to January 1,
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2030, a tax is imposed pursuant to the provisions of subsection (a)(4) of this section, upon the
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transfer of the net estate of every resident or nonresident decedent as a right of transfer, if the net
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taxable estate shall exceed five million six hundred thousand dollars ($5,600,00);
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(iv) For decedents whose death occurs on or after January 1, 2030 and prior to January 1,
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2031, a tax is imposed pursuant to the provisions of subsection (a)(4) of this section, upon the

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transfer of the net estate of every resident or nonresident decedent as a right of transfer, if the net
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taxable estate shall exceed six million six hundred thousand dollars ($6,600,00);
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(v) For decedents whose death occurs on or after January 1, 2031 and prior to January 1,
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2032, a tax is imposed pursuant to the provisions of subsection (a)(4) of this section, upon the
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transfer of the net estate of every resident or nonresident decedent as a right of transfer, if the net
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taxable estate shall exceed seven million six hundred thousand dollars ($7,600,00);
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(vi) For decedents whose death occurs on or after January 1, 2032 and prior to January 1,
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2033, a tax is imposed pursuant to the provisions of subsection (a)(4) of this section, upon the
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transfer of the net estate of every resident or nonresident decedent as a right of transfer, if the net
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taxable estate shall exceed eight million six hundred thousand dollars ($8,600,00);
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(vii) No tax on the transfer of the net estate shall be due for any transfer of a decedents
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estate for a decedent whose death occurs on or after January 1, 2033.
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(b) If the decedent’s estate contains property having a tax situs not within the state, then
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the tax determined by this section is reduced to an amount determined by multiplying the tax by a
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fraction whose numerator is the gross estate excluding all property having a tax situs not within the
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state at the decedent’s death and whose denominator is the gross estate. In determining the fraction,
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no deductions are considered and the gross estate is not reduced by a mortgage or other
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indebtedness for which the decedent’s estate is not liable.
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(c)(1) The terms “gross taxable estate,” “federal gross estate” or “net taxable estate” used
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in this chapter or chapter 23 of this title has the same meaning as when used in a comparable context
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in the laws of the United States, unless a different meaning is clearly required by the provisions of
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this chapter or chapter 23 of this title. Any reference in this chapter or chapter 23 of this title to the
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Internal Revenue Code or other laws of the United States means the Internal Revenue Code of
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1954, 26 U.S.C. § 1 et seq.
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(2) For decedents whose death occurs on or after January 1, 2002, the terms “gross taxable
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estate” “federal gross estate” or “net taxable estate” used in this chapter or chapter 23 of this title
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has the same meaning as when used in a comparable context in the laws of the United States, unless
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a different meaning is clearly required by the provisions of this chapter or chapter 23 of this title.
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Any reference in this chapter or chapter 23 of this title to the Internal Revenue Code or other laws
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of the United States means the Internal Revenue Code of 1954, 26 U.S.C. § 1 et seq., as they were
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in effect as of January 1, 2001, unless otherwise provided.
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(d) All values are as finally determined for federal estate tax purposes.
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(e) Property has a tax situs within the state of Rhode Island:
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(1) If it is real estate or tangible personal property and has actual situs within the state of

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Rhode Island; or
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(2) If it is intangible personal property and the decedent was a resident.
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(f) The provisions of this section shall sunset and expire on January 1, 2033.
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SECTION 2. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- ESTATE AND TRANSFER TAXES -- LIABILITY AND
COMPUTATION
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This act would increase the net taxable estate exemption to three million six hundred
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thousand dollars ($3,600,000) on January 1, 2027. This act would also increase the exemption by
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one million dollars ($1,000,000) on January 1, 2028, and every year thereafter until this section and
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the tax would sunset and expire on January 1, 2033.
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This act would take effect upon passage.
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