The Rhode Island bonus tax calculator at the top of this page uses the supplemental tax rate so employers can easily figure out the net pay (or take-home pay) your employee should take home for wage payments such as bonus pay.
Behind the numbers
Behind the numbers
Updated: July 12, 2025
Does Rhode Island tax bonuses?
Yes. Bonuses are taxed as part of total compensation under the state’s standard withholding rules.
How to calculate bonus tax in Rhode Island
Rhode Island allows two methods for calculating withholding on supplemental wages, such as bonuses. It depends on whether the bonus is identified separately from regular wages:
- If the bonus is paid separately (or clearly listed apart from regular pay), you may withhold at the supplemental flat rate of 5.99%.
- If the bonus is combined with regular wages and not listed separately, employers need to aggregate the amounts and apply Rhode Island’s standard withholding tables to the total.
How can employers in Rhode Island pay bonuses to employees?
Bonuses in Rhode Island can be paid via:
- Check
- Direct deposit
- Pay card
How do bonuses work in Rhode Island?
Bonuses are reported on Form W-2 and subject to full withholding.
Why are bonuses taxed differently than standard pay?
They aren’t — bonuses are subject to the same withholding as wages.
What is the bonus tax rate in Rhode Island?
Rates range from 3.75% to 5.99%
Why are bonuses taxed differently than standard pay?
They aren’t — bonuses are subject to the same withholding as wages.