2026 tax year · Rhode Island
Marketplace seller taxes in Rhode Island
Etsy, eBay, Shopify and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is your costs, in Rhode Island that gap is worth $6,871 in tax.
Take a driver who grossed $45,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the marketplace seller page $26,775 comes off and $18,225 is left as taxable profit. That profit is what Rhode Island and the IRS charge against.
What that leaves you owing in Rhode Island
Rhode Island uses graduated 2026 income tax brackets topping out at 5.99%, across 3 brackets, on top of federal income tax and self-employment tax.
| Self-employment tax | $2,575 |
| Federal income tax | $67 |
| Rhode Island income tax | $635 |
| Total tax | $3,277 |
| Effective rate on gross | 7.3% |
Earning more in Rhode Island
A single filer taking the standard deduction, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | Rhode Island tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time | $15,000 | $0 | $15,000 | $523 | $2,642 | 17.6% |
| Steady side income | $45,000 | $0 | $45,000 | $1,568 | $10,148 | 22.6% |
| Full-time | $72,000 | $0 | $72,000 | $2,509 | $17,313 | 24.0% |
Switching state opens that state's page.
Enter your numbers and press Calculate to see your 2026 estimate.
Rhode Island specifics that change the number
Rhode Island runs a state disability insurance program: 1.3% up to $84,000 of wages. RI TDI mandatory for employees.
Rhode Island is one of the twelve states that still taxes Social Security benefits, which matters if you are drawing benefits alongside self-employment income.
Selling into and out of Rhode Island
Income tax follows you: Rhode Island taxes your profit wherever the buyer was. Sales tax does not. Marketplace facilitator laws make the platform collect and remit sales tax on your behalf in most states, which is why a seller can have customers in all fifty and still file only one income tax return. Selling off-platform is where that stops being true.
On $18,225 of profit, what the states around Rhode Island would charge:
| State | Its tax | vs Rhode Island |
|---|---|---|
| Connecticut | $570 | −$113 |
| Massachusetts | $911 | +$228 |
- Connecticut would take $113 less, $570 against Rhode Island's $683.
- Massachusetts would take $228 more, $911 against Rhode Island's $683.
Marketplace seller tax questions in Rhode Island
How much should a Rhode Island seller set aside?
About 7.3% of gross on the $45,000 example, $3,277 across self-employment tax, federal income tax and $635 to Rhode Island. Set aside from each payout rather than finding it in April.
Does the $45,000 on my 1099-NEC match what Rhode Island taxes?
No. Rhode Island taxes profit, not gross. After $26,775 of deductions the taxable figure is $18,225, so the Rhode Island bill is $635 rather than what gross alone would suggest.