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Rhode Island
Rhode Island tax changes for 2026 include new short-term rental levy, higher estate tax threshold – What’s Up Newp
Several tax changes took effect in Rhode Island on Jan. 1, including a new tax on whole-home short-term rentals and inflation adjustments to the estate tax threshold, the state Division of Taxation announced this week.
The changes affect short-term rental operators, homebuyers, estate planning and several business tax credits.
Short-term rentals
Owners of short-term rentals face two changes this year. The local hotel tax that applies to all short-term rentals, including hotels, doubled from 1% to 2%.
A new 5% whole-home short-term rental tax now applies to any residential dwelling rented in its entirety. The tax covers houses, condos, mobile homes and other residential dwellings, including vacation rentals and those offered through online hosting platforms such as Airbnb and VRBO.
Real estate conveyance tax
The Tier 2 threshold for the real estate conveyance tax increased to $824,000, up from $800,000. The threshold will now be adjusted annually based on the Consumer Price Index. The Tier 2 rate of $3.75 per $500 applies to residential property sales exceeding the threshold, in addition to the Tier 1 rate.
Estate tax
The Rhode Island estate tax threshold rose to $1,838,056 for decedents dying in 2026, up from $1,802,431 in 2025. The estate tax credit amount increased to $87,940 from $85,375.
Interest rates
Interest on tax overpayments dropped to 7.25% from 8%. Rates on underpayments remain at 18% for trust fund taxes and 12% for all other taxes.
Business tax credits
Several business tax credits were eliminated for tax years beginning Jan. 1, 2026, including the Jobs Growth Act Tax Credit, Specialized Investment Tax Credit and Employment Tax Credit. The Research and Development Expense Credit carryforward period increased from seven years to 15 years.
For more information, contact the Division of Taxation at 401-574-8829 or visit tax.ri.gov.
PROVIDENCE, R.I. — Rhode Island Attorney General Peter Neronha will release on Wednesday findings from a multiyear investigation into child sexual abuse in the Diocese of Providence.
According to the attorney general’s office, the report will detail the diocese’s handling of clergy abuse over decades.
While the smallest state in the U.S., Rhode Island is home to the country’s largest Catholic population per capita, with nearly 40% of the state identifying as Catholic, according to the Pew Research Center.
Neronha first launched the investigation in 2019, nearly a year after a Pennsylvania grand jury report found more than 1,000 children had been abused by an estimated 300 priests in that state since the 1940s. The 2018 report is considered one of the broadest inquiries into child sexual abuse in U.S. history.
Neronha’s investigation involved entering into an agreement with the Diocese of Providence to gain access to all complaints and allegations of child sexual abuse by clergy dating back to 1950. Neronha’s office said in 2019 that the goal of the report was to determine how the diocese responded to past reports of child sexual abuse, identify any prosecutable cases, and ensure that no credibly accused clergy were in active ministry.
Rhode Island State Police also helped with the investigation.
Rhode Islanders who plan to join in the global celebration of Irish culture can choose from big and small events, including a parade in Providence.
The March 17 holiday falls on a Tuesday this year, and many big events will be held the weekend of March 14-15. Originally a modest, religious feast day honoring the patron saint of Ireland, St. Patrick’s Day today is a vibrant, boisterous holiday observed by millions of people regardless of their heritage.
The Providence parade is March 21.
We’ve rounded up 10 more events to help you celebrate St. Patrick’s Day. But first, are you planning an event this spring? Feature it, so nearby readers see it all across Patch — including in roundups like this!
Here’s your guide to St. Patrick’s Day fun in Rhode Island:
Local News
The two victims were identified as a husband and wife from Rhode Island, local officials said.
A Rhode Island husband and wife in their 50s were identified as the two people killed in a Swansea car crash Friday night.
Carlolyn Carcasi, 54, and James Carcasi, 53, of Bristol, Rhode Island, were killed in the Feb. 27 crash, the office of Bristol County District Attorney Thomas Quinn said in a press release Monday.
The crash occurred at the intersection of Route 136 and Route 6 in Swansea, Quinn’s office said.
Police in Cranston, Rhode Island identified the driver who allegedly hit the couple as Demitri Sousa, 28. Sousa allegedly shot and killed a man in Rhode Island nearly four hours before the crash, Cranston police said.
At around 12:18 a.m. Friday, Swansea police spotted Sousa’s Infiniti barreling down Route 6, Swansea officials said previously.
The couple was driving southbound on Route 136 when the Sousa crashed into the side of a Subaru Ascent. Both cars had “catastrophic damage,” and the Subaru was engulfed in flames, Swansea fire and police officials said.
Both occupants of the Subaru were declared dead at the scene, Swansea officials said.
Sousa was transported to a local hospital, where he is being treated for serious injuries. He is expected to live and will be held in Cranston police custody until he is medically cleared, police said Sunday.
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