As of February 21, 2026, Rhode Island residents are feeling the pinch of increased taxation as the state government implements new measures to raise revenue. The taxation news comes as a blow to many individuals and businesses who are already struggling to make ends meet in the face of economic challenges.One of the key changes to the state's tax system is the introduction of a higher income tax rate for top earners. Individuals making over $200,000 per year will now be subject to a tax rate of 6.5%, up from the previous rate of 5.99%. This increase is expected to generate millions of dollars in additional revenue for the state, but it has sparked backlash from those who argue that it unfairly burdens the wealthy.In addition to the income tax hike, Rhode Island has also raised taxes on cigarettes and other tobacco products. The state's cigarette tax is now $4.50 per pack, up from $4.25, while the tax on other tobacco products has increased by 10%. These changes are part of a broader effort to discourage smoking and promote public health, but they have faced criticism from smokers and tobacco retailers who say they will hurt small businesses.On the corporate side, Rhode Island has implemented a new tax on e-commerce sales. Online retailers with more than $100,000 in annual sales to Rhode Island residents will now be required to collect and remit sales tax, leveling the playing field between online and brick-and-mortar businesses. This move has been lauded by local retailers who have long argued that online sellers have an unfair advantage.Despite the backlash from some quarters, Rhode Island Governor Jane Smith has defended the tax increases as necessary to address the state's budget shortfall and fund essential services. "These measures are tough but necessary to ensure that Rhode Island can meet its obligations and invest in the future," she said in a statement.The taxation news out of Rhode Island has left many residents feeling frustrated and concerned about their financial futures. While some understand the need for increased revenue, others worry that the new taxes will only add to their financial burdens. As the state grapples with these challenges, the debate over taxation is likely to continue for the foreseeable future.