Key figures
Rhode Island accounting
2026, with sources
A flat 7% with a $400 floor
Rhode Island’s business corporation tax is 7% of net income apportioned to the state, or a $400 minimum, whichever is greater, filed on Form RI-1120C. The same $400 is the annual charge on LLCs and partnerships, so even a pass-through subsidiary pays it. There is no separate franchise or capital-stock tax on top.
Unitary groups under common ownership must file a combined return, checking the combined box on the RI-1120C and attaching Schedule CGM listing each member. A Delaware parent with a Rhode Island operating subsidiary files once for the group; a standalone corporation with no affiliates files on its own.
Apportionment
Rhode Island apportions by receipts. Sales of goods are sourced to where they are delivered, and gross income from services is attributed to Rhode Island if the benefit of the services is received there. For a SaaS company, that means Rhode Island customers drive the apportionment, not where the servers or engineers are.
Where the state departs from federal
Rhode Island passed legislation disallowing several provisions of P.L. 119-21, the 2025 federal tax law. The one a software startup feels is § 174A: a company that expenses $800,000 of domestic developer cost federally in 2026 adds it back in Rhode Island and amortizes it, carrying a state-only deferred tax asset for years.
The five-year NOL limit is the sharpest edge. A company that loses money for several years and then turns profitable can find its earliest Rhode Island losses expired, which a state tax provision needs to model rather than assume away.
- Bonus depreciation is added back and replaced with normal depreciation, tracked as long as the asset lasts.
- § 174A immediate R&E expensing is added back and amortized on RI Schedule 174A.
- The 2025 federal changes to § 163(j) interest, § 179(b) expensing limits and § 181 are not followed.
- NOLs carry forward only five years.
Deadlines
- 15th day of the 4th month (Apr 15 for calendar years)Business corporation tax returnForm RI-1120C
- By the original due dateAutomatic six-month extension, with a proper estimate of the full taxForm BUS-EXT
- 15th day of months 4, 6, 9 and 1225% installments when tax is expected to exceed $400Estimated tax
The federal baseline
This page covers what Rhode Island adds. The federal rules underneath it apply here too.
Common questions
How long do Rhode Island NOLs last?
Five years. Rhode Island allows the federal net operating loss deduction, adjusted for state modifications, but only as a carryforward to the five succeeding taxable years, with no carryback. A startup that loses money for six years before turning a profit loses the oldest year’s losses for Rhode Island purposes.
Does Rhode Island follow federal R&D expensing?
No. Rhode Island disallowed several provisions of the 2025 federal law, including § 174A. A taxpayer that fully expenses domestic research and experimental expenditures federally adds back the accelerated amount and uses RI Schedule 174A to amortize it.
Accounting next door
- CTConnecticut accountingConnecticut taxes corporations at 7.5% of apportioned income, with a 10% surtax that reaches every combined group, a $250 minimum and an NOL cap at half of income.
- MAMassachusetts accountingMassachusetts taxes corporations at 8% of apportioned income plus $2.60 per $1,000 of property or net worth, with a $456 minimum. From 2025 apportionment is by sales only.
Founder guides on this
- R&D taxThe R&D tax credit and Section 174A for startupsEngineering salaries can earn a federal R&D credit against payroll tax, and Section 174A lets you deduct US research again. What qualifies, what to track.
- US GAAPUS GAAP for early-stage startups, in plain EnglishAccrual accounting, revenue recognition (ASC 606), leases (ASC 842), stock compensation and capitalized software: what each means for a small company.
- FundraisingAudit-ready books before your Series AInvestors, lenders and auditors ask for the same things: accrual statements, reconciled accounts and support for every balance. How to be ready first.
- The closeWhy startups should close their books every monthA monthly close turns a bank balance into numbers an investor, an auditor or a 409A firm will accept. What it is, and why it gets expensive to skip.
More of the Rhode Island guide
- ReceivablesReceivables and sales tax in Rhode IslandSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayablesPayables and contractors in Rhode IslandPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- PayrollPayroll taxes and employer rules in Rhode IslandWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in Rhode IslandRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in Rhode IslandCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.