Rhode Island: Sales Tax Handbook
Rhode Island Sales Tax Rate
|State Sales Tax||Local Sales Tax Range||Average Local Tax||Average Combined Tax||Max Combined Tax|
2016 Rhode Island Sales Tax Handbook
Rhode Island Table of Contents
- List of Local Sales Tax Rates
- Sales Tax Calculator
- Sales Tax Exemption Certificates
- Sales Tax Info For Businessowners
- Taxable vs. Non-Taxable Purchases
- Sales Tax on Cars & Vehicles
- More Information
Rhode Island's Sales Tax By The Numbers:
Rhode Island has a higher-than-average sales tax, including when compared to states that allow localities to collect sales taxes (Rhode Island does not).
Rankings by Average State + Local Sales Tax:
Ranked 21st highest by combined state + local sales tax
Ranked 34th highest by per capita revenue from state + local sales taxes ($802 per capita)
Rankings by State Sales Tax Only:
Ranked 2nd highest by state sales tax rate
Ranked 22nd highest by per capita revenue from the statewide sales tax ($839 per capita)
Printable PDF Rhode Island Sales Tax Datasheet
Rhode Island has a statewide sales tax rate of 7.00%, which has been in place since 1947.
Unlike many other states, Rhode Island doesn't allow municipal governments to collect a local option sales tax. Therefore, sales tax rates will be the same across the entire state.
This page provides an overview of the sales tax rates and laws in Rhode Island. If you are a business owner and need to learn more about things like getting a sales tax permit, filing a sales tax return, or making tax-exempt purchases for resale see the Rhode Island Sales Tax Handbook's Table of Contents above.
What is exempt from sales taxes in Rhode Island?
Many states have special sales tax rates that apply to the purchase of certain types of goods, or fully exempt them from the sales tax altogether. Here's how Rhode Island taxes five types of commonly-exempted goods:
For more details on what types of goods are specifically exempt from the Rhode Island sales tax see Rhode Island sales tax exemptions. To learn more about what types of transactions are subject to the sales tax to begin with, see what purchases are taxable in Rhode Island? Taxation of vehicle purchases in particular are discussed in the page about Rhode Island's sales tax on cars.
Are services subject to sales tax in Rhode Island?
"Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In Rhode Island, specified services are taxable.
About the Rhode Island Sales Tax
The state of Rhode Island has relatively simple sales tax rate, and utilizes a flat state tax rate. Although there are no local sales tax rates applied by counties or cities, Rhode Island does employ several other taxes such as the restaurant tax.
Is the Rhode Island Sales Tax Destination-Based or Origin-Based?
Rhode Island is a destination-based sales tax state, which means that sales tax rates are determined by the location of the buyer when the transaction is completed. This means that, for orders placed via the internet/mail by a customer within Rhode Island from a Rhode Island vendor, the vendor must collect a sales tax rate applicable at the buyer's address (including any applicable local sales taxes). This can significantly increase the complication of filing your sales tax return, because different sales tax rates must be charged to different buyers based on their location.
Is Rhode Island a Streamlined Sales Tax State?
Rhode Island is a member of the Streamlined Sales and Use Tax Agreement, which means that the Rhode Island Division of Taxation has taken significant steps to simplify Rhode Island's sales tax rules and administration process.
Contact the Rhode Island Division of Taxation
The Rhode Island Sales Tax is administered by the Rhode Island Division of Taxation. You can learn more by visiting the sales tax information website at www.tax.ri.gov.
Phone numbers for the Sales Tax division of the Division of Taxation are as follows:
- Local Phone: (401) 574-8955
Learn More: Our Book Recommendations
If you would like to learn more about how to manage your Rhode Island sales taxes, we recommend the following books:
Simplify Rhode Island sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Click here to get more information.
Rhode Island Sales Tax Rates by Zip Code:
Need an updated list of Rhode Island sales tax rates for your business? Download our Rhode Island sales tax database!