Rhode Island 1099 taxes: a 2026 guide for the self-employed
Keeper StaffKeeper is a delightfully smart tax filing software that's especially useful for people with 1099 contracting and freelance income. Our blog breaks down IRS guidance with real-world examples and analysis by tax professionals — empowering taxpayers to save money and take control of their finances.
Krislyn ChanKrislyn is Chief Growth Officer at Keeper. At Keeper, she strives to make expert-level tax strategies that used to require a traditional CPA accessible to all. Prior to Keeper, she was at Curology, where she helped bring custom, prescription-grade skincare out of the dermatologist's office to millions of faces.
Key takeaways
- 1099 income in Rhode Island is subject to three taxes: 15.3% federal self-employment tax, 10% to 37% federal income tax, and 3.75% to 5.99% Rhode Island income tax.
- Set aside 20–25% of your profit in a high-yield savings account, so the money earns interest until your tax payments are due. For a single filer with no other income, total tax runs from 20.5% of profit at $40,000 to 30.3% at $200,000.
- Most self-employed people pay 3.75%. Rhode Island’s lowest income tax rate covers the first $82,050 of taxable income for every filer, single or married.
- Rhode Island estimated payments start at $250. If you expect to owe $250 or more in Rhode Island income tax, make quarterly estimated tax payments, due April 15, June 15, and September 15, 2026, and January 15, 2027.
- An LLC costs $400 a year in Rhode Island. Every LLC, including one you own by yourself, pays a $400 annual charge to the Division of Taxation on top of the $50 annual report.
How much tax do 1099 workers pay in Rhode Island?
These tables show estimated 2026 tax on self-employment profit, the amount left after business expenses. They assume this is your only income, you take the standard deduction, and you have no kids or tax credits.
Single filer, 2026
| 1099 profit | Total tax | % of profit | Self-employment tax | Federal income tax | Rhode Island income tax |
|---|---|---|---|---|---|
| $40,000 | $8,204 | 20.5% | $5,652 | $1,775 | $777 |
| $60,000 | $13,511 | 22.5% | $8,478 | $3,559 | $1,474 |
| $80,000 | $18,819 | 23.5% | $11,304 | $5,344 | $2,171 |
| $100,000 | $25,233 | 25.2% | $14,130 | $8,235 | $2,868 |
| $150,000 | $42,627 | 28.4% | $21,194 | $16,413 | $5,020 |
| $200,000 | $60,658 | 30.3% | $28,234 | $25,196 | $7,228 |
Married filing jointly, one self-employed spouse, 2026
| 1099 profit | Total tax | % of profit | Self-employment tax | Federal income tax | Rhode Island income tax |
|---|---|---|---|---|---|
| $40,000 | $6,210 | 15.5% | $5,652 | $398 | $160 |
| $60,000 | $11,220 | 18.7% | $8,478 | $1,885 | $857 |
| $80,000 | $16,408 | 20.5% | $11,304 | $3,550 | $1,554 |
| $100,000 | $21,715 | 21.7% | $14,130 | $5,335 | $2,251 |
| $150,000 | $35,228 | 23.5% | $21,194 | $9,795 | $4,238 |
| $200,000 | $51,153 | 25.6% | $28,234 | $16,472 | $6,446 |
How Rhode Island taxes 1099 income
If you’re a freelancer, independent contractor, gig worker, or solo business owner in Rhode Island, your net profit (1099 income minus business expenses) is taxed three ways:
- Federal self-employment tax: 15.3% on most of your profit (92.35% of it). That’s 12.4% for Social Security, on earnings up to $184,500 in 2026, plus 2.9% for Medicare with no cap. It replaces the payroll taxes an employer would split with you. Estimate it with the self-employment tax calculator.
- Federal income tax: 10% to 37% on what’s left after three deductions: the $16,100 standard deduction ($32,200 married filing jointly), half of your self-employment tax, and the 20% QBI deduction.
- Rhode Island income tax: 3.75% to 5.99% on your profit minus half of your self-employment tax, the $11,200 standard deduction ($22,400 married filing jointly), and a $5,250 exemption for each person on your return. You report it on Form RI-1040.
What’s different about Rhode Island
- The same brackets for everyone. Single filers and married couples filing jointly use the same income ranges, so a married couple reaches the 4.75% rate at the same $82,050 of taxable income as a single filer.
- A large exemption. Rhode Island’s $5,250 exemption per person, added to the standard deduction, means a single filer pays no Rhode Island tax on the first $16,450 of income left after half of self-employment tax.
- No QBI deduction. The IRS lets you deduct up to 20% of your business profit. Rhode Island doesn’t. At $80,000 of profit, that’s $11,650 you deduct on your federal return but still pay Rhode Island tax on.
- Some federal deductions carry over. Because Rhode Island starts with the income on your federal return, three deductions you take there also lower your Rhode Island tax: half of your self-employment tax, self-employed health insurance premiums, and self-employed 401(k) contributions.
A self-employed person in Rhode Island at $80,000 pays $18,819: about $442 less than in California and $2,171 more than in Texas, which has no income tax.
Rhode Island income tax rates for 2026
Rhode Island uses one rate schedule for every filing status. The ranges rise with inflation each year.
| Rate | All filers |
|---|---|
| 3.75% | $0 – $82,050 |
| 4.75% | $82,050 – $186,450 |
| 5.99% | Over $186,450 |
If your income is high, Rhode Island shrinks your standard deduction and exemptions. The phase-out starts at $261,000 of income and takes them away completely above $290,800.
Example: Rhode Island tax on $80,000 of 1099 income
Here’s the math for a single self-employed person in Rhode Island with $80,000 of profit and no other income.
| Step | Amount |
|---|---|
| Self-employment tax: $80,000 × 92.35% × 15.3% | $11,304 |
| $80,000 minus half of self-employment tax | $74,348 |
| Income the IRS taxes: $74,348 minus the $16,100 standard deduction and $11,650 QBI deduction | $46,599 |
| Federal income tax | $5,344 |
| Income Rhode Island taxes: $74,348 minus the $11,200 standard deduction and $5,250 exemption | $57,898 |
| Rhode Island income tax (3.75%) | $2,171 |
| Total 2026 tax | $18,819 (23.5%) |
Self-employment tax is the biggest piece. Every dollar you write off as a business expense lowers all three taxes, since your self-employment tax, federal income tax, and Rhode Island income tax are all based on your profit after expenses.
What tax write-offs can I claim?
How to lower your Rhode Island 1099 tax bill
At $80,000 of profit, every $1,000 of business expenses you deduct cuts about $265 from your total tax. Common write-offs for self-employed people in Rhode Island include:
- Your phone and internet, for the share you use for work
- Car expenses, using a set rate per mile or your actual costs (compare the two)
- A home office, if you use part of your home regularly and only for work (estimate yours)
- Software, equipment, and supplies you buy for your business
- Health insurance premiums you pay as a self-employed person
- Retirement contributions to a SEP-IRA or Solo 401(k)
Most of these are small purchases spread across a year of bank and card statements, which is where they get missed. See the full list of tax write-offs for self-employed people.
Track and claim every eligible deduction with Keeper
Keeper scans your accounts for write-offs and files your return — with tax pros reviewing every one.
Try it freeRhode Island estimated tax payments
If you expect to owe $250 or more in Rhode Island income tax for 2026 that isn’t covered by withholding, make estimated payments to the Rhode Island Division of Taxation online through the Taxation Portal or with Form RI-1040ES. They’re due on the same dates as your federal payments, and each is a quarter of your Rhode Island tax:
| Payment | Share of your Rhode Island tax | Due date |
|---|---|---|
| 1st | 25% | April 15, 2026 |
| 2nd | 25% | June 15, 2026 |
| 3rd | 25% | September 15, 2026 |
| 4th | 25% | January 15, 2027 |
- Federal payments are separate: you pay the IRS on the same four dates with Form 1040-ES.
- To avoid a penalty for paying too little, pay at least 80% of this year’s Rhode Island tax or 100% of last year’s in on-time payments. Rhode Island has no higher bar for high earners. The charge is 12% a year on the amount you’re short.
- You can skip the January payment if you file your 2026 Rhode Island return and pay the full balance by February 15, 2027.
Get your payment amounts with the Rhode Island quarterly tax calculator.
Should you form an LLC or S corp in Rhode Island?
You don’t need one to work as an independent contractor. If you work for yourself without forming a business, you report 1099 income on Schedule C, part of your regular tax return, and pay the taxes above.
- LLCs cost more in Rhode Island than in most states. You pay $150 to form one and $50 a year for the annual report, plus a $400 annual charge to the Division of Taxation, filed on Form RI-1065 by March 15. That applies even to an LLC you own by yourself, starting the year you form it.
- S corps can make sense once your profit is around $80,000, when the self-employment tax savings get significant. You pay yourself a reasonable salary and take the rest as profit payouts (distributions) that aren’t subject to self-employment tax. In Rhode Island, an S corp also pays the $400 annual charge.
Run the numbers for your income to see what you’d save.
7 sources
- ADV 2025-22: inflation-adjusted amounts for Tax Year 2026 (Rhode Island Division of Taxation) · tax.ri.gov
- 2026 Form RI-1040ES estimated tax instructions · tax.ri.gov
- 2025 Form RI-2210: underpayment of estimated tax · tax.ri.gov
- Notice 2025-01: Rhode Island filing requirements for LLCs · tax.ri.gov
- Costs and fees (Rhode Island Secretary of State) · sos.ri.gov
- IRS releases tax inflation adjustments for tax year 2026 · irs.gov
- Contribution and benefit base · ssa.gov
This article is for informational purposes only and isn’t tax, legal, or financial advice. Tax rules change and depend on your situation, so talk to a tax professional about yours.
