What is the Rhode Island PTET rate?

Rhode Island's PTET rate is 5.99% flat. 5.99% (RI top individual marginal rate) — used for both PTE elective tax and nonresident composite. Confirm 2026 rate in 2025 RI-1065 instructions.

Is the Rhode Island owner credit refundable?

Rhode Island's PTET owner credit is refundable.

Does Rhode Island PTET affect composite-return filing?

Stacks. See the composite-vs-PTET page for the full matrix.

Rhode Island · RI

Rhode Island Pass-Through Entity Tax (PTET)

Rhode Island's PTET regime is one of the 37+ state workarounds to the federal SALT cap (IRC §164(b)(6)). The election is annual, statute-pinned below, and interacts with composite filing and §199A QBI in state-specific ways.

Statute: R.I. Gen. Laws § 44-11-2.3 (Pass-Through Entity Tax Election)
State DOR portal: https://tax.ri.gov/tax-sections/corporate-tax/pass-through-entities
Election deadline: [PLACEHOLDER: state DOR cite] — election deadline to be pinned to RI-1065/RI-1120S instructions.
Election form: RI Schedule PTE (attached to RI-1065 partnership return, RI-1120S S corp return, or RI-1041 trust return)
Entity-level rate: 5.99% — 5.99% (RI top individual marginal rate) — used for both PTE elective tax and nonresident composite. Confirm 2026 rate in 2025 RI-1065 instructions.
Eligible entities: s-corp, partnership, llc-as-s, llc-as-partnership
Owner credit: refundable
Composite interaction: stacks
§199A QBI base reduction: Yes — Reduces federal flow-through income (Notice 2020-75).
Last verified: 2026-05-11

Source: tax.ri.gov/tax-sections/corporate-tax/pass-through-entities + 2025 RI-1065 Instructions. RI was one of the EARLIEST adopters (2019).

IRC §164(b)(6)Notice 2020-75 IRC §199A

Reference computation

For a Rhode Island pass-through entity with $500,000 of qualified net income allocated to this state, at a 37% federal marginal bracket, the entity-level PTET and federal-deduction math is:

Rhode Island — reference example

QBI allocation·RI rate= Entity-level tax

$500,000×6%=$29,950

R.I. Gen. Laws § 44-11-2.3 (Pass-Through Entity Tax Election)

Entity tax·Federal bracket= Federal deduction (gross)

$29,950×37%=$11,082

At a 37% federal bracket, the entity-level deduction saves $11,082 in federal tax. Net of §199A QBI offset (~20% × bracket × entity tax = $2,216), aggregate benefit is approximately $8,865.

IRS Notice 2020-75

Run the picker pre-filled for Rhode Island

Election walkthrough

Verify eligibility. Rhode Island accepts: s-corp, partnership, llc-as-s, llc-as-partnership.
Check the deadline. [PLACEHOLDER: state DOR cite] — election deadline to be pinned to RI-1065/RI-1120S instructions. Starting tax year 2024, PTE election is reported on a SCHEDULE integrated into Forms RI-1041, RI-1065, RI-1120S — Form RI-PTE no longer standalone.
Compute the entity-level tax. Apply the 5.99% rate to qualified net income.
Pay and file. Use RI Schedule PTE (attached to RI-1065 partnership return, RI-1120S S corp return, or RI-1041 trust return). Quarterly estimates may be required.
Owners claim the state credit. refundable credit on the personal state return.
Verify composite interaction. Composite interaction: stacks. See composite vs PTET.
Run the federal §199A QBI math. PTET reduces the QBI base proportionally; net the federal SALT-arbitrage against the §199A offset.

Rhode Island PTET — common questions

Annual deadline reminder

State PTET law revises annually. Rhode Island's data was last verified on 2026-05-11. Re-confirm with the state DOR primary source before electing or filing. Last full-site review: 2026-05-12.

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Reference computation

For a Rhode Island pass-through entity with $500,000 of qualified net income allocated to this state, at a 37% federal marginal bracket, the entity-level PTET and federal-deduction math is:

Rhode Island — reference example

QBI allocation·RI rate= Entity-level tax

$500,000×6%=$29,950

R.I. Gen. Laws § 44-11-2.3 (Pass-Through Entity Tax Election)

Entity tax·Federal bracket= Federal deduction (gross)

$29,950×37%=$11,082

At a 37% federal bracket, the entity-level deduction saves $11,082 in federal tax. Net of §199A QBI offset (~20% × bracket × entity tax = $2,216), aggregate benefit is approximately $8,865.

IRS Notice 2020-75

Election walkthrough

Verify eligibility. Rhode Island accepts: s-corp, partnership, llc-as-s, llc-as-partnership.

Check the deadline. [PLACEHOLDER: state DOR cite] — election deadline to be pinned to RI-1065/RI-1120S instructions. Starting tax year 2024, PTE election is reported on a SCHEDULE integrated into Forms RI-1041, RI-1065, RI-1120S — Form RI-PTE no longer standalone.

Compute the entity-level tax. Apply the 5.99% rate to qualified net income.

Pay and file. Use RI Schedule PTE (attached to RI-1065 partnership return, RI-1120S S corp return, or RI-1041 trust return). Quarterly estimates may be required.

Owners claim the state credit. refundable credit on the personal state return.

Verify composite interaction. Composite interaction: stacks. See composite vs PTET.

Run the federal §199A QBI math. PTET reduces the QBI base proportionally; net the federal SALT-arbitrage against the §199A offset.

Rhode Island PTET — common questions