What is the Rhode Island sales tax? Rhode Island: Sales Tax Handbook

Rhode Island:

Rhode Island Sales Tax Rate RI Sales Tax 2016

State Sales Tax Local Sales Tax Range Average Local Tax Average Combined Tax Max Combined Tax
7.00% N/A N/A 7.00% 7%

2016 Rhode Island Sales Tax Handbook

These rankings show how the Rhode Island sales tax compares to the other 49 states + DC. The state with the highest sales tax is ranked 1st, and states with the same sales tax have a tie rank.

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)



Download Rhode Island datasheet 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:


Clothing

  EXEMPT

Groceries

  EXEMPT

Prepared Food

  8%

Prescription Drugs

  EXEMPT

OTC Drugs

  7.%

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:


Small Business Taxes For Dummies

This introductury book assists both current and aspiring small business owners with important tax planning issues, and covers a wide variety of small business tax topics.

Buy on Amaxon

A Guide to Sales and Use Tax

This book provides information and insights on how to comply with a multitude of sales and use tax laws and regulations. This is our recommendation if you need an in-depth look into sales taxes.

Buy on Amaxon

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!


** This Document Provided By SalesTaxHandbook **
Source: http://www.salestaxhandbook.com/rhode-island