Rhode Island Sales Tax Overview
Rhode Island imposes a 7 percent sales tax on most tangible items, including physical property like furniture, home appliances, and motor vehicles. The state does not allow cities or counties to have their own sales taxes and the statewide sales tax applies to all sales within state jurisdiction.
Tax Comparison with Other New England States
Rhode Island has a sales tax rate of 9.69%, ranking lower than other New England states such as Vermont, Maine, and Connecticut.
Rhode Island Sales Tax Specifics
- Rhode Island Liquor Tax: Liquor vendors in Rhode Island must pay an excise tax of $5.40 per gallon on all liquor sold.
- Rhode Island Property Taxes: The state ranks 10th in the nation for high property taxes.
Rhode Island Sales Tax Calculation
The taxable basis for Rhode Island’s sales tax is the portion of a transaction subject to tax. This includes retail sales of goods and services, with considerations for coupons, discounts, and excise taxes.
Filing and Rates
- Filing Requirements: Part-year residents in Rhode Island who are required to file a federal return must also file a Rhode Island tax return.
- Sales Tax Rate: The general sales tax rate in Rhode Island for 2023 is 7%, with no local sales taxes levied.
Miscellaneous Facts
- Cost of Living: Rhode Island ranks 26th in terms of cost of living but 30th as the best state to live in the United States.
- Tax Revenue: Sales and Gross Receipts Taxes in Rhode Island amount to 1.9 billion, representing 53.25% of the total taxes raised in the state.
Extension and Corporate Taxes
- Rhode Island automatically grants 6-month extensions for filing corporate income tax returns.
- Businesses selling taxable tangible personal property at retail in Rhode Island must register and collect sales tax.
Contact Information
For tax return submissions in Rhode Island, the address of the Rhode Island General Treasurer’s Office is:
50 Service Avenue, Warwick, RI 02886.