2025 Tax Year

Rhode Island Side Hustle Tax Calculator

Calculate your Rhode Island state tax (3.75%), federal tax, and self-employment tax on 1099 income.

RI3.75%

1.1 million residents

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2025 rates

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Last updated: January 2026 · Data from IRS Rev Proc 2024-40

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State

W-2 Income (from your day job)

Side Hustle Income *

Business Expenses (optional)

Rhode Island side hustlers face a progressive income tax with rates from 3.75% to 5.99%. The Ocean State has three tax brackets and no local income taxes. While Rhode Island's top rate is moderate, it kicks in at higher income levels, so many side hustlers pay lower rates.

Rhode Island Tax Guide

How Side Hustle Taxes Work in Rhode Island

Rhode Island uses a three-bracket progressive system:

**Rhode Island state tax rates (2025):** - 3.75% on income up to $77,450 (single) - 4.75% on income $77,450-$176,050 - 5.99% on income over $176,050

**Key features:** - Relatively wide first bracket at 3.75% - No local income taxes - Top rate only applies to high earners

Most side hustlers with typical W-2 jobs will pay 3.75% to 4.75% on their self-employment income.

Example

What Rhode Island Side Hustlers Owe

Let's say you're a single filer in Providence with a $55,000 W-2 job and $16,000 in side hustle income from freelance marketing, with $2,500 in business expenses.

**Your estimated taxes on the side hustle:** - Net self-employment income: $13,500 - Federal SE tax (15.3% of 92.35%): ~$1,909 - Federal income tax on side income: ~$2,970 (22% bracket) - Rhode Island state tax (3.75%): ~$506 - **Total additional tax: ~$5,385**

Important Dates

Rhode Island Tax Deadlines 2025

Rhode Island estimated tax deadlines: - **Q1**: April 15, 2025 - **Q2**: June 17, 2025 - **Q3**: September 16, 2025 - **Q4**: January 15, 2026

Use Rhode Island Form RI-1040ES for state estimated tax payments.

Save Money

Common Deductions for Rhode Island Freelancers

Rhode Island freelancers benefit from a wide 3.75% first bracket. **Home office expenses**: Claim dedicated business space using simplified ($5/sq ft) or actual expense method. **Business mileage**: 67 cents/mile for 2025; important for those serving clients in Providence or across the state. **Equipment and supplies**: Computers, cameras, tools, and office supplies are deductible. **Professional services**: Accounting, legal, and tax preparation fees are fully deductible. **Health insurance premiums**: Self-employed individuals can deduct 100% of health insurance costs. **Retirement contributions**: SEP-IRAs and Solo 401(k)s reduce federal AGI, which Rhode Island uses as its starting point—saving you at federal rate plus 3.75-5.99%. **Marketing expenses**: Website costs, business cards, and promotional materials are deductible. **Tax credits**: Rhode Island offers various credits for low-to-moderate income taxpayers. Rhode Island starts with federal AGI, so all Schedule C deductions reduce your RI taxes. The wide 3.75% bracket (up to $77,450) means most side hustlers pay lower rates than in Massachusetts.

Common Questions

Rhode Island Side Hustle Tax FAQ

What is Rhode Island's tax rate on side hustles?

Most side hustlers pay Rhode Island's 3.75% rate (income up to $77,450). The 4.75% rate applies to income up to $176,050, and 5.99% only for higher earners.

Does Providence have a city income tax?

No, Providence and all Rhode Island cities do not have local income taxes. You only pay the state tax rate.

How does Rhode Island compare to Massachusetts?

Rhode Island's effective rate is often lower. Massachusetts has a flat 5%, while most RI residents pay 3.75% on their first $77,450 of income.

Do I need to register my side hustle in Rhode Island?

Sole proprietors using their legal name don't need state registration. If using a trade name (DBA), register with your city or town clerk. LLCs must register with the Rhode Island Secretary of State. Sellers may need a Sales Tax Permit.

When are Rhode Island quarterly estimated taxes due?

Rhode Island quarterly deadlines are April 15, June 17, September 16, and January 15. Use Form RI-1040ES for payments.

Is Rhode Island better than Massachusetts for freelancers?

Often yes, for taxes. Most RI freelancers pay 3.75% vs MA's flat 5%. On $50,000 of side hustle income, you'd save about $625 annually in RI vs MA. However, compare total cost of living and commute considerations.

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