Rhode Island General Laws

R.I. Gen. Laws § 44-11-2 (2026)

Imposition of tax

✓ current as of July 2026

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(a) Each corporation shall annually pay to the state a tax equal to nine percent (9%) of net income, as defined in § 44-11-11, qualified in § 44-11-12, and apportioned to this state as provided in §§ 44-11-13 — 44-11-15, for the taxable year. For tax years beginning on or after January 1, 2015, each corporation shall annually pay to the state a tax equal to seven percent (7.0%) of net income, as defined in § 44-11-13 — 44-11-15, for the taxable year.

(b) A corporation shall pay the amount of any tax as computed in accordance with subsection (a) after deducting from “net income,” as used in this section, fifty percent (50%) of the excess of capital gains over capital losses realized during the taxable year, if for the taxable year:

(1) The corporation is engaged in buying, selling, dealing in, or holding securities on its own behalf and not as a broker, underwriter, or distributor;

(2) Its gross receipts derived from these activities during the taxable year amounted to at least ninety percent (90%) of its total gross receipts derived from all of its activities during the year. “Gross receipts” means all receipts, whether in the form of money, credits, or other valuable consideration, received during the taxable year in connection with the conduct of the taxpayer’s activities.

(c) A corporation shall not pay the amount of the tax computed on the basis of its net income under subsection (a), but shall annually pay to the state a tax equal to ten cents ($.10) for each one hundred dollars ($100) of gross income for the taxable year or a tax of one hundred dollars ($100), whichever tax shall be the greater, if for the taxable year the corporation is either a “personal holding company” registered under the federal Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq., “regulated investment company,” or a “real estate investment trust” as defined in the federal income tax law applicable to the taxable year. “Gross income” means gross income as defined in the federal income tax law applicable to the taxable year, plus:

(1) Any interest not included in the federal gross income; minus

(2) Interest on obligations of the United States or its possessions, and other interest exempt from taxation by this state; and minus

(3) Fifty percent (50%) of the excess of capital gains over capital losses realized during the taxable year.

(d)(1) A small business corporation having an election in effect under subchapter S, 26 U.S.C. § 1361 et seq., shall not be subject to the Rhode Island income tax on corporations, except that the corporation shall be subject to the provisions of subsection (a), to the extent of the income that is subjected to federal tax under subchapter S. Effective for tax years beginning on or after January 1, 2015, a small business corporation having an election in effect under subchapter S, 26 U.S.C. § 1361 et seq., shall be subject to the minimum tax under § 44-11-2(e).

(2) The shareholders of the corporation who are residents of Rhode Island shall include in their income their proportionate share of the corporation’s federal taxable income.

(3) [Deleted by P.L. 2004, ch. 595, art. 29, § 1.]

(4) [Deleted by P.L. 2004, ch. 595, art. 29, § 1.]

(e) Minimum tax. The tax imposed upon any corporation under this section, including a small business corporation having an election in effect under subchapter S, 26 U.S.C. § 1361 et seq., shall not be less than four hundred fifty dollars ($450). For tax years beginning on or after January 1, 2017, the tax imposed shall not be less than four hundred dollars ($400).

Notes of Decisions

Cited in 4 cases, 1963–1992 · leading case: Narragansett Wire Co. v. Norberg, 376 A.2d 1 (R.I. 1977).

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Narragansett Wire Co. v. Norberg, 376 A.2d 1 (R.I. 1977). · cites it 3× “Thus section 44-11-2(1) imposes an annual tax at the prescribed rate on net income “* * * apportioned to this state as provided in §'§44-11-13 through 44-11-15, inclusive * * The relevant provisions of these sections read as follows: “44-11-13.”

Cookson Am., Inc. v. Clark, 610 A.2d 1095 (R.I. 1992). · cites it 5× “General Laws 1956 (1980 Reenactment) § 44-11-2, as it existed in 1982 and in 1983, required a corporation to pay to the state an annual corporate tax, calculated either as a percentage of the net income or as a portion of the net worth, whichever amount *1098 yielded the greater…”

First Repub. Corp. of Am. v. Norberg, 358 A.2d 38 (R.I. 1976). “General Laws 1956 (1970 Reenactment) §§44-11-2(2), 44-11-16, as amended by P. L.”

Kalian v. Langton, 192 A.2d 12 (R.I. 1963). “Pursuant to §44-11-2, as amended, such incorporated businesses are subject to a tax of 6 per cent on net income, or forty cents on each $100 of their corporate excess, whichever is the greater.”

— R.I. Gen. Laws § 44-11-2(1) — 1 case

Narragansett Wire Co. v. Norberg, 376 A.2d 1 (R.I. 1977). “Thus section 44-11-2(1) imposes an annual tax at the prescribed rate on net income “* * * apportioned to this state as provided in §'§44-11-13 through 44-11-15, inclusive * * The relevant provisions of these sections read as follows: “44-11-13.”

— R.I. Gen. Laws § 44-11-2(2) — 1 case

First Repub. Corp. of Am. v. Norberg, 358 A.2d 38 (R.I. 1976). “General Laws 1956 (1970 Reenactment) §§44-11-2(2), 44-11-16, as amended by P. L.”

— R.I. Gen. Laws § 44-11-2(2)(a) — 1 case

Cookson Am., Inc. v. Clark, 610 A.2d 1095 (R.I. 1992). “General Laws 1956 (1980 Reenactment) § 44-11-2, as it existed in 1982 and in 1983, required a corporation to pay to the state an annual corporate tax, calculated either as a percentage of the net income or as a portion of the net worth, whichever amount *1098 yielded the greater…”

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