Capital gains: Taxed as ordinary income.
What changed: New annual tax on non-owner-occupied homes assessed above $1 million ($2.50 per $500 of value above $1 million) took effect July 1, 2026.
| July 1, 2026 | Rhode Island non-owner-occupied property tax on homes over $1 million Second homes assessed above $1 million pay $2.50 per $500 of value above $1 million each year ($5,000 on a $2 million home). Properties rented 183+ days a year are exempt. | In effect |
Gov. Dan McKee signed a $15.2 billion budget that adds one percentage point a year for three years on income above $1 million, taking the top rate from 5.99% to an effective 8.99%.