Leonard Legal Group, P.C.

06/18/2026

Rhode Island joined the growing ranks of states with a millionaire tax, moving to shore up its budget in spite of warnings that the departure of even a few wealthy residents would hurt the nation’s smallest state.

Democratic Governor Dan McKee signed a budget Friday that institutes a new tax on incomes over $1 million, lifting the state’s top rate to 8.99% from 5.99% over three years. While McKee earlier this year proposed immediately implementing the full levy, state legislators decided to phase it in to better gauge its effect on revenue.

Rhode Island Jumps to Middle of Pack for Northeast Tax Rates

Its top marginal tax rate will surpass Vermont's and Connecticut's once the new millionaire tax is fully implemented.

New York -10.90%

New Jersey - 10.75%

Maine - 9.15%

Massachusetts - 9.00%

Rhode Island - 8.99%

Vermont - 8.75%

Connecticut -6.99%

Note: New Hampshire doesn't have an income tax.

(Source: Tax Foundation)

By asking the wealthiest Rhode Islanders to pay a little more, this budget also protects Rhode Islanders from reckless cuts by the Trump administration,” McKee said during a news conference.

Rhode Island is following Democratic-led states including Massachusetts, Washington and Maine in raising taxes on the wealthy to bolster government services at a time when top earners are prospering even as many residents struggle to afford everyday expenses. In California, a healthcare workers union and its allies are backing a ballot measure that proposes a one-time 5% tax on wealth over $1 billion.

McKee resisted the Rhode Island tax as recently as last year but embraced the measure in January as a way to fill a budget hole that he blamed on reductions in some federal spending programs under President Donald Trump.

Earlier this year in Maine, Governor Janet Mills reversed her opposition to a millionaire tax.

Massachusetts, the first New England state to approve a millionaire tax, has raked in nearly $9 billion from the levy since it took effect in 2023, significantly more than lawmakers had counted on. The revenue generated from the surtax has increased every year. McKee’s office has projected that the Rhode Island tax will bring in about $135 million annually once fully implemented.

Business groups including the Greater Providence Chamber of Commerce oppose the measure, arguing that it removes an important advantage as Rhode Island seeks to compete with neighboring Massachusetts.

Even a limited exodus of top earners to other states could have a major economic effect, according to the chamber’s president, Laurie White. With a population just over 1 million, Rhode Island only has a few thousand residents who will be subject to the millionaire tax, she said.

“As the smallest state, we have a very fragile economy to begin with,” White said, adding that the chamber plans to prioritize legislation next session to repeal the tax.

Rhode Island lawmakers supported the tax even after a bump last month in projected revenue from personal income taxes and other sources. Higher taxes on the wealthy amount to the “fairest approach to taxation,” said a spokesperson for Rhode Island Senate President Valarie Lawson.

(Source: Bloomberg Tax)

06/09/2026

Honored to be named by Rhode Island Monthly Professional Excellence In The Law - 6th year in a row! Estate Planning & Administration - Elder Law - Business Law - Asset Protection - Tax

www.LeonardLegalGroup.com

https://www.rimonthly.com/professional-excellence-in-the-law/

05/14/2026

Honored to assist and guide a family through the probate process.

04/19/2026

Fresh off tax season, Americans now have a clearer idea of where their state stacks up when it comes to how much of their income actually goes to taxes — and the results may surprise some.

A new report from WalletHub ranked all 50 states by total tax burden, offering a big-picture look at what residents really pay.

Hawaii, New York and Vermont top the list as the states where residents hand over the largest share of their income to state and local taxes. Rhode Island - logs in at 10th in the nation for highest tax burden. Florida - not surprised at 47th!

Tax Burden by State in 2026

04/19/2026

Oil prices fell sharply this week, with U.S. crude dropping below $85 per barrel after the temporary reopening of the Strait of Hormuz. At one point, prices declined more than 9% in a single session as supply concerns eased and expectations shifted toward improved global flows.

04/14/2026

Thanks Goodness! Spring has finally sprung!

03/20/2026

Leaders of States and municipalities must be aware of the competitive nature and forces that tax and social policies have on its population and the ever increasing reality that policies that target higher net worth individuals will often have a negative impact and encourage those individuals to relocate to states that have policies that encourage engagement and investment and not discourage and penalize.

There is and will be a mass exodus by individuals and business that believe are being unfairly targeted and taxed and when they leave they take the dollars that they invest and reinvest in the community they reside and use those dollars in their new community - leaving a void in the area they left.

New York and its Governor is learning that lesson.

Blue states like New York pursue wealthy taxpayers fleeing to red state tax havens like Florida and Texas with governors calling for aggressive action.

03/17/2026

When a loved one passes, and they have assets in their own name that do not have a beneficiary designation or are jointly held, those assets become part of the deceased persons probate estate. Probate and the probate courts oversee the transfer of those assets from the decedent to either the heirs or beneficiaries named in a will. We have to honor of advising and guiding families through the probate courts and probate process.

03/09/2026

Senate Minority Leader Jessica de la Cruz's bill (S2710) would reduce Rhode Island's personal income tax rates by 2% every year for five years. The reduction would begin Jan. 1, 2027.

The goal is to strengthen Rhode Island’s competitiveness so that businesses invest, expand, and create jobs here. When that happens, the tax base grows – which ultimately supports state revenues.

In the event the tax cut does not spark anticipated growth, the proposal includes a built-in pause trigger. If revenues do not perform as expected, the next phase of the reduction does not take effect.

A new bill would cut income taxes for all residents over five years, emerging as a dramatic counter to the push for a millionaires tax.

03/08/2026

Under current Rhode Island law, estates are exempt from taxation up to $1.8 million. Anything above that amount is subject to estate tax. In today’s economy, that threshold is shockingly low. A modest home in many Rhode Island communities, combined with a small business, retirement savings, or life insurance, can easily exceed that amount – without the family being “wealthy” by any reasonable standard.

By contrast, the federal estate tax exemption currently stands at $15.0 million per person or $30.0 million per married couple. That gap puts Rhode Island at a serious disadvantage. Families who want to stay here, grow businesses here, and pass their livelihoods on to their children are instead encouraged to move to states with more reasonable tax policies.

The estate tax punishes hard work, savings, long-term investment and Rhode Island's ability to be competitive by taxing assets that were already taxed during a person’s lifetime. For many Rhode Islanders, this is not about yachts, mansions or private jets. It is about modest family businesses, triple-deckers, farms, and homes that have been owned for generations.

The estate tax makes it far more difficult to pass on a family business to the next generation. Families are then forced to make impossible choices: sell the business, a portion of the farm, take on debt, or lay off employees simply to pay a tax bill. That is not fair, and it is not good economic policy. Rhode Island is one of only nine states that penalizes taxpayers even after they pass away.

Eliminating the tax would provide certainty to families and businesses while keeping Rhode Island competitive in the region. The estate tax does not only affect those who pay it. When family businesses are sold or broken apart, employees lose jobs, communities lose stability, and local economies suffer.

When retirees relocate to avoid the tax, we lose not only revenue, but also civic engagement, philanthropy and institutional knowledge. Rhode Islanders work hard. They save. They invest. They build businesses not just for themselves, but also for their children and grandchildren. The legacy they leave should not come with an impossible price tag.

Doing business here is already challenging; a recent poll ranked Rhode Island dead last in states to open a business. We should not make it harder by clinging to a tax policy that discourages investment, penalizes family ownership, and drives opportunity elsewhere.

Reforming the estate tax is not about helping the wealthy – it is about protecting families, preserving local businesses, and securing Rhode Island’s economic future.

* Rhode Island is one of nine states that imposes an estate tax on assets after a person's death.
* The state's current estate tax exemption is $1.8 million, which critics argue is too low in today's economy.
* Legislation has been introduced to eliminate the estate tax, aiming to keep families and businesses from leaving the state.
* Opponents of the tax claim it forces families to sell assets, such as businesses or farms, to cover the tax liability.

https://www.providencejournal.com/story/opinion/columns/2026/03/08/rhode-island-estate-tax-impacts-families-and-businesses-opinion/88850364007/?utm_campaign=trueanthem&utm_medium=social&utm_source=facebook&fbclid=IwY2xjawQa4zJleHRuA2FlbQIxMQBicmlkETFWUEI2SGoyMmFhdTZGQlpLc3J0YwZhcHBfaWQQMjIyMDM5MTc4ODIwMDg5MgABHme52GmJx6frejUp96zXqrPBJaHkZCzFnBz3N1IOjXQkBboD2lz68aQ1ufK1_aem_-q1qn54isW4PhszSzEbosA

Rhode Island's estate tax forces families to make impossible choices, impacting businesses and driving residents away.