State guide · RI
Rhode Island sales tax and property tax
No town adds its own sales tax, a coat is taxed only on the dollars above $250, and since July 2026 the state taxes pricey second homes directly.
Facts read on official Rhode Island pages on · Checked by Radif Partners · How we calculate
- State sales tax
- 7%
- Local sales taxes
- None
- Groceries
- Exempt from the state rate
- Clothing
- Exempt under $250 an item
- Median property tax
- $4,886
- Effective property rate
- 1.07% · #15 of 51
Rhode Island applies a single 7% sales tax across the whole state, and none of its 39 cities and towns may stack a general rate on top, so the tax on a lamp or a laptop is the same at every address. What varies is the base. Clothing and footwear are tax-free up to $250 per item, and above that line only the excess is taxed: a $275 coat owes $1.75, not 7% of the full price. Groceries and prescription drugs are exempt. Restaurant meals pay a further 1% local meals and beverage tax, 8% in all, and since January 1, 2026 short-term stays carry a 2% local hotel share, with whole-home rentals adding a new 5% tax. Property tax belongs to the cities, towns and fire districts. The Census put the median bill at $4,886 on a $455,700 home in 2024, an effective 1.07%, with the median bill ranked 9 of 51. Since July 1, 2026 the state also taxes homes assessed above $1,000,000 that are not the owner's primary residence.
Total to pay
$107.00
Sales tax $7.00 · 7% of the price
| Price before tax | $100.00 |
| State tax · 7% | $7.00 |
| Local tax · not charged on this item | $0.00 |
| Total | $107.00 |
Rule applied: general state rate. How this is calculated.
Sales tax in Rhode Island
A flat statewide rate changes how a Rhode Islander shops. There is no address lookup to run and no county line to cross for a cheaper rate: 7% is the answer in every one of the 39 municipalities, and the same 7% is owed as use tax on goods bought out of state without Rhode Island tax. The calculator above therefore needs no local rate at all.
The clothing rule is where the arithmetic gets interesting, because the exemption works as a deductible rather than a ceiling. The first $250 of each garment is untaxed, the remainder pays 7%. Leather boots at $400 owe $10.50, an effective 2.63%, and even a $640 suit pays only $27.30. Two limits apply: the threshold is counted item by item, and pieces normally sold together, such as the jacket and trousers of that suit, cannot be rung up separately to squeeze each under $250. Choose "Clothing" in the calculator to see the deduction applied.
Eating out is taxed twice over. Every restaurant, café and bar adds the 1% local meals and beverage tax, collected by the state and handed back to the city or town, so a $90 dinner carries $7.20 of tax, often printed as a single 8% line. Candy, soft drinks and prepared food are taxed even when bought at a grocery. Lodging moved in 2026: the local hotel share doubled to 2% on January 1, and renting an entire house for a short stay now adds a 5% whole-home tax. Tax on a room stops after 30 consecutive days, and checking out restarts the count.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | 7% | no | Single statewide 7% sales and use tax on tangible goods, certain utility services and enumerated services. There is no general local sales tax; meals carry an extra 1% local meals and beverage tax and lodging carries state and local hotel taxes. |
| Groceries (food for home) | 0% | no | Food and food ingredients for human consumption are exempt (R.I. Gen. Laws 44-18-30(9)); candy, soft drinks and prepared food are taxable. |
| Clothing | 0% under $250, then 7% | no | Clothing and footwear are exempt up to $250 per item; only the part of the price above $250 is taxed (a $275 coat is taxed on $25). Items normally sold as a unit, like a suit, cannot be split to qualify. |
| Prescription drugs | 0% | no | |
| Meals and beverages (local meals and beverage tax) | 1% | Charged by every eating and drinking establishment on top of the 7% sales tax, for 8% in total. | |
| Hotel room rentals (hotel tax) | 7% | Hotel tax of 7% on room rentals for the first 30 days, in addition to the 7% sales tax. Since January 1, 2026 the local share rose from 1% to 2%. | |
| Whole-home short-term rentals | 5% | New 5% whole home short-term rental tax since January 1, 2026, on top of sales tax and the 2% local hotel tax. |
Local sales taxes
Rhode Island has no local sales taxes: Not applicable: cities and towns do not levy their own general sales tax.
Sales tax holidays in 2026
No sales tax holiday found in Division of Taxation guidance for 2026.
Worth knowing about Rhode Island sales tax
- The $250 clothing threshold applies per item: five $60 shirts bought together ($300) are all tax-free. source
- Restaurants may show sales tax and meals tax combined as a single 8% line if separate lines cause hardship. source
- Insulin and medical oxygen are exempt whether or not sold on prescription; over-the-counter drugs and dietary supplements are taxable unless prescribed. source
- Since January 1, 2026, the local hotel tax on all short-term rentals is 2% (up from 1%), and renting a whole home adds a new 5% tax. source
- Remote sellers must collect Rhode Island tax once they reach $100,000 in gross receipts or 200 transactions; Rhode Island is a Streamlined Sales Tax member state. source
- Lodging is taxed only for the first 30 consecutive days of a stay; a check-out restarts the count. source
Property tax in Rhode Island
Each of the 39 cities and towns runs its own assessment, valuing property as of December 31, and its tax rate is set per $1,000 of assessed value. State law sets the rhythm: a statistical update in the third and sixth years and a full revaluation every ninth year, so a bill can jump in a revaluation year even when the rate stands still. Towns may also tax classes of property at different rates; West Warwick uses four. A total levy cannot rise more than 4% over the previous fiscal year unless an exception applies, which caps the town's budget, not your individual bill.
There is no statewide homestead exemption, so any break for owner-occupants comes from your own town's rate structure. Cars, at least, have left the bill: the motor vehicle excise column reads $0.00 for every municipality in the FY2026 table. Apply the statewide Census ratio of 1.07% to a $400,000 house and the bill lands near $4,288, though your town's own rate decides the real figure.
The novelty of 2026 sits at the top of the market. Since July 1, the state taxes residential property assessed above $1,000,000 that is not the owner's primary residence, at $2.50 for each $500 of value beyond the first million, with a first payment due September 15, 2026. A $1,400,000 summer house therefore owes $2,000 to the state on top of its town bill. A home rented long term, or as a taxable short-term rental for 183 days or more in the year, is exempt from that charge.
Property tax on a home in Rhode Island
Typical bill per year
$4,885
| Per month | $407 |
| Median effective rate in Rhode Island | 1.07% |
| Median bill paid | $4,886 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | Rhode Island |
|---|---|
| Median home value (owner-occupied) | $455,700 |
| Median real estate taxes paid | $4,886 |
| with a mortgage | $4,984 |
| without a mortgage | $4,713 |
| Effective rate (tax ÷ value) | 1.07% |
| Rank by effective rate (1 = highest) | 15 of 51 |
| Rank by median bill | 9 of 51 |
How the taxable value is set
Each city or town sets assessed values as of December 31. Municipalities must perform a statistical update every third and sixth year and a full revaluation every ninth year (R.I. Gen. Laws 44-5-11.6). Rates are set per $1,000 of assessed value and can differ by class (residential, commercial, personal property). Who levies the tax: local (39 cities and towns, plus fire districts); the state levies a separate Non-Owner Occupied Property Tax on high-value second homes since July 1, 2026
Other property tax relief
- Non-Owner Occupied Property Tax exemptions. Homes rented long-term or as taxable short-term rentals for 183 days or more in the privilege year are exempt from the state's new tax on non-owner-occupied homes. source
Worth knowing about Rhode Island property tax
- Since July 1, 2026, Rhode Island taxes residential properties assessed above $1,000,000 that are not the owner's primary residence: $2.50 per $500 of assessed value above $1 million. The first payment was due September 15, 2026. source
- Cities and towns may not raise their total property tax levy by more than 4% over the previous fiscal year, unless an exception applies. source
- The motor vehicle excise tax column shows $0.00 for every municipality in the FY2026 rate table: Rhode Island cities and towns no longer tax cars. source
- The assessment date is December 31; the FY2026 tax roll is based on values as of December 31, 2024. source
- West Warwick taxes real property at four different rates depending on the type of property, an example of classified local rates. source