Is Rhode Island Sales Tax Free?

Overview of Sales Tax in Rhode Island

• The sales tax rate in Rhode Island is 7%. Businesses must register with the state and collect sales tax on taxable goods and services.

Exemptions and Regulations

• Common taxable items in Rhode Island include tangible personal property and many services. Exceptions include prescription medication, most food items, fuel, and apparel.

Sales Tax Collection and Compliance

• Businesses must track and remit sales tax to the Rhode Island Division of Taxation. Compliance with regulations is essential to avoid penalties.

Rhode Island Sales Tax Rate and Nexus Laws

• The state of Rhode Island has a single 7% sales tax rate applicable statewide. Economic nexus laws require small businesses with specific sales thresholds to collect and remit sales tax.

Rhode Island Use Tax and Forms

• Buyers are required to pay the 7% use tax on untaxed purchases like online and out-of-state transactions. Sales tax exemption forms and other related documents can be obtained from the Division of Taxation website.