Rhode Island Sales and Use Tax

What is the Rhode Island sales tax?    7%

Click for larger image The Rhode Island sales tax rate is currently 7%. In Rhode Island, no other municipality can add sales taxes on top of the state rate.

Taxes in Rhode Island are destination-based, meaning the Rhode Island sales tax rate is based, or determined from, the destination location an item is shipped to. This complicates business for retailers who need to have the exact and up-to-date sales tax rate for every shipment they make.

To see a full breakout of Rhode Island sales tax rates by state, county, city and special district, use our easy Rhode Island sales tax calculator. After putting in any ZIP code, you can enter a retail price to calculate Rhode Island sales tax totals.

What is the Rhode Island use tax?

The Rhode Island state use tax rate is the same as the state rate, but there is no use tax collected for county, city or special districts.

If you reside in RI, use tax is due to the state on any and all transactions where sales tax has not been paid, even out-of-state internet sales.

Who has to pay Rhode Island sales tax or use tax?

In general, a business must collect and remit all applicable Rhode Island sales taxes if that business has nexus, a physical presence such as a brick-and-mortar location, within a given state. The presence of an employee or salesperson, delivery by the seller's vehicle, and storage of materials usually establishes nexus as well.

Rhode Island says that an out-of-state seller is required to collect tax if they can be defined as a "retailer engaging in business". Rhode Island has certain additional laws establishing nexus for other reasons such as out-of-state businesses using in-state affiliates, advertisers or vendors, or businesses that make internet sales or mail catalogs.

If you are not sure if you have established nexus in Rhode Island, you can usually get free help by contacting the Rhode Island Division of Taxation. Click here for an updated listing of direct phone numbers. You could also contact a qualified certified public accountant or lawyer who specializes in tax law in Rhode Island. Click here for listing of recommended resources.

Special rules applying to Rhode Island:

• Shipping is taxable.
• Finance charges are exempt from sales tax, when stated separately.
• Clothing is tax exempt, except for clothing and footwear of certain types.
• Rhode Island Sales tax holidays are not planned for this state .

Since Rhode Island legislators can vote to change the Rhode Island sales tax and use tax rates at any time, it is very difficult for individuals to keep track of the changes. The population of RI state is also rapidly changing, which can cause frequent updates to the ZIP codes and local municipality names and complicates the job of keeping track of Rhode Island sales tax jurisdictions.

Rhode Island Division of Taxation
Rhode Island State Website