Rhode Island — Sales & Use Tax

Rhode Island imposes a 7% sales tax on sales at retail in the state, including rentals of living quarters in hotels, rooming houses, or tourist camps (for periods not exceeding 30 consecutive days). The tax is calculated on the gross receipts of the retailer. A complementary 7% use tax applies to the storage, use, or other consumption in Rhode Island of tangible personal property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, specified digital products, and services as defined in R.I. Gen. Laws § 44-18-7.3. The use tax generally applies when sales tax was not collected, such as on out-of-state purchases.

Source: R.I. Gen. Laws § 44-18-18, R.I. Gen. Laws § 44-18-20

Rhode Island requires remote sellers and marketplace facilitators with no physical presence in the state to register and collect sales tax if, in the immediately preceding calendar year, they had gross revenue from sales into Rhode Island of $100,000 or more, or had sales into Rhode Island in 200 or more separate transactions. The requirement applies effective July 1, 2019.

Source: Rhode Island Division of Taxation – Remote Sellers

Rhode Island sales and use tax returns are due on or before the 20th day of the month following the reporting period. Sellers generally file on a monthly basis. However, sellers whose average monthly Rhode Island sales and use tax liability is less than $200 may apply to the Tax Administrator for quarterly filing. The Tax Administrator may approve quarterly filing in their discretion, and any approval is valid for no more than two years. Sellers approved for quarterly filing must reapply for renewal.

Source: R.I. Gen. Laws § 44-19-10

Rhode Island exempts from sales and use tax the first $250 of the sales price per item of clothing and footwear intended to be worn or carried on or about the human body. Any amount above $250 per item is taxable. The exemption does not apply to clothing accessories, equipment, special clothing or footwear primarily designed for athletic activity, or protective use as defined in statute.

Source: R.I. Gen. Laws § 44-18-30(7)

Rhode Island requires marketplace facilitators to collect and remit sales and use tax on all sales made through their marketplace to purchasers in the state, regardless of whether the marketplace seller has a permit or would otherwise be required to collect tax. This obligation applies when the marketplace facilitator meets the economic nexus threshold: gross revenue from sales into Rhode Island of $100,000 or more, or 200 or more separate transactions, in the immediately preceding calendar year. The requirement became effective July 1, 2019.

Statutory definition and scope

A "marketplace facilitator" is defined in R.I. Gen. Laws § 44-18.2-2(5) as any person that contracts with a marketplace seller to facilitate for consideration the sale of the seller's products through a physical or electronic marketplace. A "marketplace" includes a store, booth, internet website, catalog, television or radio broadcast, or dedicated sales software application where tangible personal property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, specified digital products, and/or taxable services are sold or offered for sale for delivery in Rhode Island.

Collection duties and retailer obligations

Under R.I. Gen. Laws § 44-18.2-3(i)(iii), a marketplace facilitator has all the obligations and rights of a retailer under chapters 18 and 19 of title 44 and any regulations adopted pursuant thereto. This includes the duty to obtain a certificate of authority, collect tax, file returns, and remit tax. The marketplace facilitator also has the right to accept certificates or other documentation from customers substantiating an exemption or exclusion from tax, and the right to receive refunds or credits allowed by law.

The statute requires a marketplace facilitator to keep records and information and cooperate with the tax administrator to ensure proper collection and remittance of tax imposed, collected, or required to be collected under chapters 18 and 19 of title 44.

Certification to marketplace sellers

Pursuant to R.I. Gen. Laws § 44-18.2-3(i)(ii), a marketplace facilitator must certify to its marketplace sellers that it will collect and remit sales and use tax on sales of taxable items made through the marketplace. A marketplace seller that accepts a marketplace facilitator's collection certificate in good faith may exclude sales made through the marketplace from the marketplace seller's own returns under chapters 18 and 19 of title 44.

Liability relief for incorrect seller information

R.I. Gen. Laws § 44-18.2-3(i)(v) provides limited liability relief: if the marketplace facilitator demonstrates to the tax administrator's satisfaction that it made a reasonable effort to obtain accurate information from the marketplace seller about a retail sale and that the failure to collect and pay the correct amount of tax was due to incorrect information provided by the marketplace seller, then the marketplace facilitator is relieved of liability for that retail sale. This relief does not apply when the marketplace facilitator is the seller or when the marketplace facilitator and seller are affiliates. When the marketplace facilitator is relieved under this provision, the seller becomes liable for the tax.

Audit and class-action protections

Under R.I. Gen. Laws § 44-18.2-3(i)(iv), a marketplace facilitator is subject to audit by the tax administrator with respect to all retail sales for which it is required to collect and pay tax. When the tax administrator audits the marketplace facilitator, the tax administrator is prohibited from auditing the marketplace seller for the same retail sales unless the marketplace facilitator seeks relief under the liability-relief provision described above.

R.I. Gen. Laws § 44-18.2-3(i)(vi) bars class actions against a marketplace facilitator on behalf of purchasers arising from or in any way related to an overpayment of sales or use tax collected by the marketplace facilitator, regardless of whether such action is characterized as a tax refund claim. This prohibition does not affect a purchaser's right to seek a refund as otherwise allowed by law.

Source: R.I. Gen. Laws § 44-18.2-2, R.I. Gen. Laws § 44-18.2-3, Rhode Island Division of Taxation – Remote Sellers

Current NAICS code reference and amendments

Rhode Island taxes only specifically enumerated services, with the definitions and categories stated in R.I. Gen. Laws § 44-18-7.3. The list of taxable services is detailed by NAICS code, which in 2019 was updated from the 2007 NAICS version to the 2017 NAICS system. This update is confirmed directly in the statutory text and by the Division of Taxation. The 2019 legislative update intentionally did not change which services were taxable but did update each reference to its 2017 NAICS equivalent for clarity and administrative consistency. As of July 1, 2019, the current reference is to 2017 NAICS codes. Practitioners must refer to the then-current statute and the enacted service list directly; services are taxable only if listed.

Recent service category additions

The last significant expansion of the taxable services base occurred with the addition of investigation, guard, and armored car services (NAICS 56161 series) as of July 1, 2018. No additional service categories have been added via statute or regulation between July 2019 and July 2026. Practitioners should regularly review the General Laws and official Division notices for future amendments, but as of this writing, the NAICS structure and enumerated list have not shifted since the 2019 update.

How to resolve classification when service offerings fall between or change NAICS categories

The controlling principle is statutory enumeration. A service provider or purchaser should:

• Review the current text of § 44-18-7.3 and match the specific service offering to the most closely applicable NAICS code listed.
• If a specific service is not found on the list, it is not subject to Rhode Island sales tax.
• Where an offering might span multiple NAICS categories, or where NAICS guidance is ambiguous, practitioners should examine both the statutory definition and the official NAICS Manual. Division of Taxation advisories and Notices may also clarify borderline cases.
• If NAICS is updated at the federal level, only an explicit statutory amendment will change Rhode Island’s taxable service base; the state does not automatically incorporate future NAICS editions by reference.
• Uncertainties about classification should be documented and, if risk is material, submitted as a request for written guidance (by letter ruling) to the Division of Taxation, referencing both the statute and the relevant NAICS version.

Enumerated services (as of July 2026)

• Investigation, guard, armored car (NAICS 56161‑series)
• Parking (NAICS 812930)
• Pet care (except veterinary/lab; NAICS 812910)
• Transportation network company rides (NAICS 485310, 485999)
• Hotel, room reseller, and travel package facilitation

Primary reference

Source: R.I. Gen. Laws § 44‑18‑7.3 Source: Rhode Island Division of Taxation Advisory 2019-13 Source: Rhode Island Division of Taxation Legislative Summary 2018

In Rhode Island, shipping and delivery charges generally remain subject to sales and use tax when they are associated with the sale of taxable tangible personal property or taxable services. Delivery charges are included in "sales price" under R.I. Gen. Laws § 44-18-12(a)(iv) and defined in detail at R.I. Gen. Laws § 44-18-7.1(i) as charges for preparation and delivery to a location designated by the purchaser, including transportation, shipping, postage, handling, crating, and packing. When the sale is taxable, the delivery charge is not deductible from the sales price.

Rhode Island regulation 280-RICR-20-70-15 reiterates that if all items in a shipment are taxable, the entire delivery charge is taxable; if all items are exempt, the delivery charge is exempt. For shipments with both taxable and exempt items, only the allocated portion pertaining to taxable items is taxed. Sellers may use a reasonable allocation method, such as the ratio of sales price or weight attributable to taxable items. If charges are not separately stated, the entire delivery charge is taxable if any items are taxable.

A June 2024 check confirms that there have been no amendments to Section 44-18-12, Section 44-18-7.1, or Regulation 280-RICR-20-70-15 impacting the delivery charge rules. The section remains accurate as written.

Source: R.I. Gen. Laws § 44-18-12, 280-RICR-20-70-15

Rhode Island law exempts “food and food ingredients”—typically grocery staples—from sales and use tax, but excludes certain categories such as prepared food, candy, and soft drinks, which are taxable.

1. Grocery Staples (“Food and Food Ingredients”) Rhode Island General Laws § 44-18-30 excludes the sale, storage, use, or consumption of “food and food ingredients” from the sales and use tax, but explicitly excludes from that exemption: (a) candy; (b) soft drinks; (c) dietary supplements; (d) alcoholic beverages; (e) food sold through vending machines; and (f) prepared food. Thus, most ordinary grocery items remain exempt, while these specific categories do not qualify for the food exemption. Source: R.I. Gen. Laws § 44-18-30

2. “Prepared Food” Under Rhode Island regulation 280-RICR-20-70-4.5(I), “prepared food” is taxable and includes any food sold in a heated state, or resulting from the seller combining two or more ingredients—subject to specific exceptions (e.g., raw meats, bakery items sold without utensils, or food sold by a NAICS-311 manufacturer except bakeries). Additionally, food sold with eating utensils is taxable. Source: 280-RICR-20-70-4.5(I)

3. Candy The same regulation defines “candy” as sugar-based preparations in forms such as bars, drops, or pieces. Candy is excluded from the food exemption and thus is taxable unless it is a bakery item containing flour or requires refrigeration (which can qualify it as exempt grocery food or bakery item). For example, KitKat bars (containing flour) may qualify as exempt; plain chocolate bars do not. Source: 280-RICR-20-70-4.5

4. Soft Drinks The regulation defines “soft drinks” as nonalcoholic beverages with natural or artificial sweeteners, excluding those containing milk or more than 50% fruit/vegetable juice by volume. Soft drinks are excluded from the food exemption and are taxable. However, frozen or powdered drink mixes are not considered soft drinks and instead qualify as exempt food ingredients. Source: 280-RICR-20-70-4.5

Not yet human confirmed.

Effective January 1, 2026, Rhode Island revised its tax treatment of short-term rentals, increasing the local hotel tax rate from 1% to 2% and introducing a new 5% whole-home short-term rental tax. These changes interact with the state's existing 7% sales tax on transient occupancy of hotels and similar accommodations.

Statewide 7% Sales Tax (Unchanged): All rentals of rooms, residences, or other accommodations for fewer than 30 consecutive days remain subject to Rhode Island’s 7% sales tax, per R.I. Gen. Laws § 44-18-36.1.

Local Hotel Tax Increase (1% → 2%): The local hotel tax increases from 1% to 2% for occupancy beginning on or after January 1, 2026. This applies to hotels, motels, and short-term rentals, whether booked directly or through a marketplace, and is collected in addition to the state sales tax. The local tax is remitted to the municipality where the property is located. (R.I. Gen. Laws § 44-18-36.1 as amended; Division of Taxation Notice 2025-09)

New 5% Whole-Home Short-Term Rental Tax: A new 5% "whole-home short-term rental tax" applies to rentals of entire residential units (where no owner is present) for less than 30 consecutive days. This tax is separate from, and does not duplicate, the 5% state hotel tax. Only one 5% tax (the hotel tax or the whole-home short-term rental tax) applies per rental, never both. Short-term rentals of individual rooms or those where the owner remains on site are not subject to the new 5% tax, but remain subject to the 7% state sales tax and (as of 2026) the 2% local hotel tax.

Who Must Collect:

• Property owners/managers are responsible for collecting all applicable taxes if bookings are made directly with guests.
• Marketplace facilitators (such as Airbnb or VRBO) are required to collect and remit all state and local taxes on behalf of property owners when bookings are made through the platform, per R.I. Gen. Laws § 44-18.2-3.

Timing: Taxes are based on the occupancy date, not the booking date. Stays that begin before January 1, 2026 are taxed under the old rates; stays beginning on or after that date are subject to the new rates.

Example Calculation (whole-home, short-term rental, booked through a marketplace in 2026):

• 7% state sales tax
• 2% local hotel tax
• 5% whole-home short-term rental tax

Total taxes: 14% of the rent price Marketplace facilitator collects and remits all three taxes if booked via their platform.

See Division of Taxation Notice 2025-09, 2025 legislative summary, and the amended statutes for further administrative details.

Not yet human confirmed.

Source: R.I. Gen. Laws § 44-18-36.1, R.I. Gen. Laws § 44-18.2-3, Division of Taxation Notice 2025-09, 2025 Summary of Legislative Changes

Rhode Island sellers must obtain and retain valid exemption certificates to document sales made without collecting sales or use tax. The requirements and protections for sellers vary by type of exemption, with primary authority found in state regulations and statute.

Resale Exemption Certificates (280-RICR-20-70-41): A seller is relieved from liability for collecting tax if it accepts a properly completed resale certificate in good faith and without knowledge of fraud (280-RICR-20-70-41 § 41.5(A)). The certificate may be either (1) Rhode Island's resale certificate (Form STC) or (2) the Streamlined Sales Tax Certificate of Exemption, provided all required information is completed. The resale certificate must:

• Be signed by the purchaser;
• State the purchaser’s name and address;
• Describe generally the type of property purchased for resale;
• Include the purchaser’s retailer permit number (or, if not required to have one, an explanation).

A seller should examine the certificate at the time of the sale. If the certificate is missing or incomplete, the sale is presumed taxable and the seller may be liable for the tax.

Cure period for missing or incomplete exemption certificates: Rhode Island law permits a seller to cure a missing or incomplete exemption certificate by obtaining a properly completed certificate within 90 days after the date of sale, or within 120 days of a request for substantiation from the Division of Taxation, provided acceptance is in good faith. This relief applies to all exemption types covered under R.I. Gen. Laws § 44-18.1-18 and closely follows the Streamlined Sales and Use Tax Agreement (SSUTA) rules. Sellers must be able to demonstrate the date on which the certificate was received. Administrative guidance and decisions confirm that the 90-day deadline is enforced strictly, and the 120-day cure applies only after a formal state request. If these statutory cure periods are missed, the transaction is presumed taxable and the seller held liable unless other proof is accepted by the Tax Administrator.

Manufacturer’s Exemption Certificates (280-RICR-20-70-19): For purchases claimed as exempt for manufacturing purposes, the purchaser must furnish a signed statement or exemption certificate indicating entitlement to the manufacturing exemption and containing all information required in the regulation. Acceptance of a properly executed certificate transfers the burden of proof from the vendor to the purchaser. The regulation does not provide a specific cure procedure if a certificate is missing; if not obtained and the statutory cure methods are not met, the transaction is presumed taxable.

Retention and Inspection: Sellers are required to retain exemption certificates (and supporting sales documentation) as part of their records. The regulation does not prescribe a specific retention period for exemption certificates. However, certificates must be available for inspection by the Division of Taxation upon audit. If proper documentation is not maintained and provided, the exempt sales are presumed taxable (280-RICR-20-70-41 § 41.12; 280-RICR-20-70-19 § 19.10).

Streamlined Sales and Use Tax Agreement (SSUTA): Rhode Island is a Streamlined member state and permits use of the Streamlined Sales Tax Certificate of Exemption if completed as required by regulation. Sellers should note that the Division of Taxation's published rules and regulations, as well as the statutory cure windows described above, control exemption documentation and relief from tax liability. The SSUTA itself provides policy context but is not controlling authority in the case of a conflict.

Checklist for Sellers:

• Obtain a properly completed exemption certificate (using Rhode Island Form STC or—if applicable—the Streamlined certificate, completed per regulation).
• If a certificate is missing or incomplete at sale, obtain the necessary documentation within the 90-day statutory cure period (or 120 days after request by the state), with clear documentation of when the certificate was received.
• Accept only certificates meeting the signature, information, and (if required) permit number standards stated in regulation.
• Do not accept obviously incomplete or suspect certificates. Acceptance in good faith is required.
• Retain certificates and related transaction documentation and provide them for inspection if audited. Failure to obtain and retain, or cure by the above procedures, shifts liability to the seller.

Authority support and human confirmation status:

• Statutory cure periods: R.I. Gen. Laws § 44-18.1-18 (paragraph C)
• Regulation 280-RICR-20-70-41: resale exemption procedures, seller relief, certificate content, seller obligations
• Regulation 280-RICR-20-70-19: manufacturer's exemption process and seller records
• Administrative guidance: Rhode Island Division of Taxation Declaratory Ruling 2020-01; Administrative Decision AD 2022-20
• SSUTA cited for policy context only—not controlling or regulatory in effect.

Human confirmed by retired SALT practitioner as of 2026-06-28.

Source: R.I. Gen. Laws § 44-18.1-18 Source: 280-RICR-20-70-41 Source: 280-RICR-20-70-19 Source: Rhode Island Division of Taxation Declaratory Ruling 2020-01 Source: Rhode Island Administrative Decision AD 2022-20 Source: SSUTA Petition, Section 317 Context

Rhode Island does not permit cities, counties, or other local jurisdictions to impose general local sales and use tax rates on top of the statewide rate. The state's general retail sales and use tax, imposed at 7%, is uniform throughout Rhode Island and administered exclusively by the state. This uniform rate is set forth in R.I. Gen. Laws § 44-18-18, and the Division of Taxation confirms that there are no local general sales or use taxes, distinguishing Rhode Island from other states that allow city or county add-on rates.

Exception: Local Meals and Beverage Tax (1%) Rhode Island does authorize one specific local sales tax: a 1% local meals and beverage tax. Under R.I. Gen. Laws § 44-18-18.1, every city and town in Rhode Island imposes an additional 1% tax on the gross receipts from the sale of meals and beverages sold in, or delivered from, eating and drinking establishments.

Key details:

• The 1% local meals and beverage tax is collected by the retailer at the point of sale and remitted to the Rhode Island Division of Taxation with the seller’s regular sales and use tax return.
• The Division of Taxation distributes the funds to municipalities based on where the sale originated (city/town location of the establishment or point of delivery).
• This local meals tax applies to the same “meals and beverages” base taxed at the 7% state rate, per the state’s definition (R.I. Gen. Laws § 44-18-7.1(13); see Division regulation for details of what qualifies).
• The local tax applies regardless of whether the meal/beverage is to be consumed on or off the premises.

No other local/district rates: Apart from the meals and beverage tax, there are no local-option general sales taxes, district rates, or additional county/city add-ons in Rhode Island. The only add-ons municipal governments can access under state law are:

• The 1% local meals/beverage tax described above; and
• Hotel/short-term rental taxes as described separately in this guide.

Official reference and rate lookup: The statewide general rate and the local meals and beverage tax are detailed on the Rhode Island Division of Taxation sales & use tax overview page (see link below). There is no separate rate lookup for local jurisdictions, since base sales and use tax does not vary by location within the state for any goods or services except meals/beverages and hotel/short-term occupancy.

Source: R.I. Gen. Laws § 44-18-18.1 Source: Rhode Island Division of Taxation – Sales & Use Tax