Rhode Island: Sales Tax Handbook
Are Software and Digital Products subject to sales tax?
While Rhode Island's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of software and digital products in Rhode Island, including canned software - delivered on tangible media, canned software - downloaded, custom software - delivered on tangible media, custom software - downloaded, customization of canned software and digital products. To learn more, see a full list of taxable and tax-exempt items in Rhode Island.
Canned Software - Delivered on Tangible Media
TAXABLE
Sales of canned software - delivered on tangible media are subject to sales tax in Rhode Island.
Canned Software - Downloaded
TAXABLE
Sales of canned software - downloaded are subject to sales tax in Rhode Island.
Custom Software - Delivered on Tangible Media
EXEMPT
Sales of custom software - delivered on tangible media are exempt from the sales tax in Rhode Island.
Custom Software - Downloaded
EXEMPT
Sales of custom software - downloaded are exempt from the sales tax in Rhode Island.
Customization of Canned Software
TAXABLE
Sales of customization of canned software are subject to sales tax in Rhode Island.
Digital Products
EXEMPT
Sales of digital products are exempt from the sales tax in Rhode Island.
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