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3/9/2026
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Serpa bill would reduce state income tax rate in phases
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STATE HOUSE — Rep. Patricia A. Serpa has introduced legislation that would reduce the state income tax rate in phases, bringing relief to every Rhode Island family.
The legislation (2026-H 7805) would reduce the personal income tax rates by an aggregate 10%, phased in equal annual increments over five years, beginning Jan. 1, 2027.
“This bill implements a tax reduction in a steady, graduated and responsible way,” said Representative Serpa (D-Dist. 27, West Warwick, Coventry), who chairs the House Oversight Committee. “A phased reduction in taxes would not only bring much-needed relief to every Rhode Island family, it would also cultivate competitiveness and investment which would greatly help to broaden our tax base and increase our revenue.”
Representative Serpa pointed out that the legislation is crafted in such a way as to responsibly administer and monitor the phase-in. In the event that income underperforms the enacted revenue estimates, the director of revenue could recommend that the scheduled rate reduction for the subsequent taxable year be delayed.
“This failsafe allows us to pause the reduction if the revenue fails to live up to projections,” said Representative Serpa. “That gives the legislature an opportunity to closely monitor the tax reduction and pause it if it’s not meeting our expectations.”
Under the bill, the director of revenue would have to report to the General Assembly, spelling out the fiscal impact of the phased rate reductions, changes in personal income tax collections by bracket, observed taxpayer behavior and economic trends, and recommendations regarding continuation of the phase-in schedule.
A companion bill (2026-S 2672) has been introduced in the Senate by Senate Minority Leader Jessica de la Cruz (R-Dist. 23, North Smithfield, Burrillville, Glocester).
For more information, contact:
Daniel Trafford, Publicist
State House Room 20
Providence, RI 02903
(401)222-1922
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