Rhode Island cuts TDI to 1.1% and raises the wage base to $100,000
The employee-paid disability contribution falls from 1.3% to 1.1% while the taxable wage base rises 12.5%. Everyone pays less; the maximum drops to $1,100.
Rhode Island’s Temporary Disability Insurance contribution rate falls to 1.1% for calendar year 2026, down from 1.3% in 2025. The taxable wage base rises at the same time, from $89,200 to $100,000 — an increase of 12.5%.
Those two changes pull against each other, but the rate cut wins at every income. The maximum contribution falls from $1,159.60 to $1,100.00, and someone earning $50,000 pays $550 instead of $650. A full-time worker on the $16.00 minimum wage pays about $366 across the year.
The detail that matters for take-home pay is who funds it: in Rhode Island the employee pays all of TDI, with no employer share. On a $75,000 salary that is $825 a year, on top of $2,196 of state income tax — and it appears in very few take-home calculators.
Separately, the Division of Taxation’s inflation advisory sets the 2026 income tax bands at 3.75% to $82,050, 4.75% to $186,450 and 5.99% above, with a standard deduction of $11,200 single and $22,400 joint, and a personal exemption of $5,250 per person.